Making a Planned Gift

Planned gifts include bequests, gifts of life insurance and retirement plans, and other contributions made through a donor's estate. Many planned giving options allow donors and their loved ones to receive income during their lifetimes from assets that will eventually benefit the College. These life-income gifts deserve special consideration when making financial and estate plans. For more information, please call (276)328-0132 or email Winston Ely at rwe@uvawise.edu. 

Why Not Give the Gift that Pays You for a Lifetime?

A gift annuity is a simple contract under which the donor transfers assets to the College, which in return provides life income to the donor and up to one other family member or loved one. There are two types of gift annuities: charitable gift annuities and deferred gift annuities.

A Charitable Gift Annuity
A charitable gift annuity may be established with a small investment ($5,000 minimum). It can be funded with either appreciated securities or cash. The donor receives an immediate income tax deduction and may also bypass or defer capital gains tax. In addition, a portion of the income may be tax-free.

A Deferred Gift Annuity
A deferred gift annuity has the same benefits and requirements as a charitable gift annuity. The only difference is that a donor selects a future date (one year or more) to begin income payments. In addition to an immediate tax deduction, benefits include increased income and a tax deduction due to deferral of income.

If your investments in the financial markets have been successful, you can use these assets without losing a substantial portion of your earnings to the capital gains tax by making your gift with appreciated stock. Also, a gift of stock held more than one year may qualify for a charitable income tax deduction equal to the securities' full fair-market value. It is also possible to make a gift with appreciated securities in a mutual fund.

Gifts of personal property help support teaching and scholarship and can greatly enhance the quality of life on the campus. Such gifts must be appraised by an outside expert, unless an item has an apparent value of less than $5,000.

Reasons to Contribute a Gift in kind include:
1. You may receive a charitable deduction for the appraised value at the time of the gift.
2. You can make a larger donation to UVa-Wise than if you sold the gift, paid capital gains tax on the sale, and contributed cash.
3. The gift's value is removed from your estate, which lowers your estate taxes.

Real estate can be contributed as an outright gift or to finance a planned gift, such as a charitable trust. Available options include a retained life estate, which allows the donor to continue to use the property for a certain number of years or for the donor's lifetime. Other arrangements offer special tax advantages and lifetime income.

Gifts of real estate, such as undeveloped land, a residence, a vacation home, a farm, or commercial property, should be arranged through the Office of Development and made through the University Real Estate Foundation. The Foundation requires the donor to bear certain costs when making a real estate gift, such as an appraisal to determine the fair market value. Also, the Foundation deducts transaction costs from the proceeds of the sale of the property, including the closing costs, title insurance, a survey (if needed), and any taxes due before the gift is completed.

Wills, Living Trusts and Retirement Plans

Through a will, living trust, or retirement plan, individuals can make gifts to UVa-Wise that are larger than anything they could imagine in their lifetimes. The process is very simple for most individuals. Gifts through wills, living trusts, or retirement plans offer a number of advantages:

• They are revocable by the donor if circumstances change.
• They realize the donor's vision for the future in a tangible way without an uncomfortable financial burden during his or her lifetime.
• Individuals may choose to designate their support to any part of the College.
• For individuals who wish to support the College at levels that will produce an endowment in perpetuity, separate endowment agreements can be created to spell out the donor's wishes.
• They may reduce estate tax for the surviving family members.

Life Insurance

A new or existing life insurance policy is a low-cost way to make a significant gift to the College. You may also receive a tax deduction for your premium payments. Please note that UVa-Wise must be owner and beneficiary of the policy for a gift to be eligible for tax benefits.

Cash

To make a gift of cash to the College, you should complete the PRINTABLE GIFT FORM and send a personal check or you can use such major credit cards as MasterCard, and Visa. Personal checks should be made payable to UVa-Wise Foundation and mailed to the address below.

The University of Virginia's College at Wise Foundation
Office of Development   

One College Avenue
Wise, VA 24293