Office of Development & Khatali Alumni Relations

Ways to Give to the UNM School of Medicine

Cash
Real Estate and Other Non-cash Items
Stocks, Bonds, Insurance Policies, etc.
Planned Estate Gifts

(photo)-Surgery Paperwork (photo credit - Barry Staver)

Charitable Gift Annuity

The charitable gift annuity provides a gift to the School of Medicine and an income fund for the donor. In exchange for an acceptable gift of property, marketable securities, or cash, UNM will agree to pay the donor or another beneficiary a specified annuity for life.

The typical donor tends to:

need immediate income
like the simplicity of the contract
want to provide a beneficiary with tax-free income
want the larger income this option provides for older annuitants

The annuity's features include:

annual income for life based on donor's age
immediate payment
mix of ordinary, capital-gain and tax-free income
funding by cash, securities, or (in some cases) other property
moderate income tax deduction

Deferred Charitable Gift Annuity

The deferred charitable gift annuity, similar to the charitable gift annuity, combines the benefits of making a gift of property, marketable securities or cash to School of Medicine and providing an income fund for the donor. It appeals to younger donors who wish to supplement their income when they get older.

The typical donor tends to:

have no need for immediate income
like the simplicity of the contract
want a larger tax deduction
make several successive contracts
need supplemental retirement income
contribute assets other than cash

The annuity's features include:

a fixed income for life
payments that begin at a future, specified date
mix of ordinary, capital-gain, and (possibly) tax-free income
funding by cash, securities, or (in some cases) other property
income set by deferral period and beneficiary's life expectancy
higher income tax deduction than if payments commenced immediately

Bequest

The bequest, one of the most frequent forms of planned giving, is fully tax deductible and can help reduce estate taxes in large estates. In more modest estates, a donor can make a larger gift than would have been possible in his or her lifetime.

The typical donor:

tends to be older but can be any age
wants flexibility so gift won't take effect during lifetime
wants to determine how assets will be used

The bequest features include:

full tax deduction
the option of specifying a sum, asset, percentage, remainder, contingency, or amount governed by estate tax savings

Insurance Gift

The insurance gift, with the University being named as primary or contingent beneficiary, is a popular gift.

The typical donor:

tends to be younger because larger gifts are possible with a modest premium
tends to be older when a life insurance policy is no longer needed

The insurance gift features include:

a charitable deduction for fair market value if given during one's lifetime with premiums deductible as cash gifts
charitable deduction for replacement value if paid-up policy is donated in one's lifetime

Charitable Remainder Annuity Trust

The charitable remainder annuity trust is irrevocable and provides a fixed income based on the value of the assets at the time the trust is created. Capital gains tax can be avoided or postponed when the trust is created, and an income tax deduction is available for a portion of the property value. There can also be estate tax benefits.

The typical donor:

needs income for life or for a specified term of years
has beneficiaries who prefer a fixed payment
has giving ability of $100,000 or more
seeks security of a fixed payment
has property that has grown substantially in value

The trust features include:

a fixed income for life
generally one or two beneficiaries
a high minimum, often as high as $100,000
funding by cash or highly appreciated securities or real estate
a separately invested trust
flexible, specific investment possibilities

Charitable Remainder Unitrust

The charitable remainder unitrust is also an irrevocable trust but provides fluctuating income based on a fixed percentage of the annual value of the trust. Capital gains tax can also be avoided or postponed when the trust is created, and an income tax deduction is available for a portion of the value of the property.

The typical donor:

needs income for life or a specified term of years
needs to see income rise as the value of the trust increases
tolerates some risk in investment portfolio to provide for growth
makes small, often repeat gifts
tends to be 60 to 75 years old
seeks moderate income tax deduction
has property that has grown substantially in value

The trust features include:

variable income for life
possibility of multiple beneficiaries
high minimum, such as $100,000
funding by cash or highly appreciated securities or real estate
flexible investment possibilities for the beneficiary

Charitable Lead Trust

The charitable lead trust allows the donor to provide an institution with income for a period of time determined by the donor (5, 10, 15, 25 years or more). The assets are then given to one or more beneficiaries who receive the remainder trust. It can be possible to transfer assets to heirs with little or no estate and gift taxes due.

The typical donor:

has substantial holdings and no need for more income
wants to pass assets intact to heirs
wants to minimize transfer taxes
has used a lifetime exclusion
tends to be entrepreneurial (the family business may be the funding asset)
has substantial giving ability
holds assets that are expected to appreciate

The trust features include:

income to the institution, corpus to heirs
arrangement for assets to pass intact to heirs
an appeal to people with substantial wealth
a deduction applied against gift or estate taxes

For more information on making a gift, please contact Sherry Wilson at (505) 272-4129 or sewilson@salud.unm.edu.