Give an Income Earning Gift
Gifts That Give Back
There are certain gift methods that allow a donor and/or one or more beneficiaries to receive income from the gift for the life of the donor and/or a beneficiary, or for fixed term.
In each case, after the period for the donor or the designated beneficiary to receive income payments ends, the gift passes to the University of Florida Foundation to support the Shelter Medicine Program.
In the year the gift is made, the donor is eligible for a charitable income tax deduction for the value of the charitable remainder interest.
Guaranteed Income for Life/Parental Support System
A gift annuity is a contract between you and the UF Foundation that provides a fixed annual payment for your life and/or the life of a second beneficiary. Charitable gift annuities may be designated to provide immediate income or the income payments may be deferred for a specified time period. Once the distribution period ends, the remaining annuity proceeds are distributed for the benefit of the Shelter Medicine Program. The year the gift is originally made, you will be eligible for an income tax deduction. In addition, part of the income may be tax-free to the income beneficiary. If you transfer appreciated assets to fund the gift annuity, you may avoid being taxed on part of the capital gain.
Increase your Income at Retirement
A charitable remainder unitrust provides an annual payment based on a fixed percentage of a yearly determination of the value of the trust assets. The unitrust can be for the life of one or more individuals or for a specified term up to 20 years. Upon termination of the annual payments to the beneficiaries, the remainder of the trust passes to the University of Florida Foundation for the benefit of the Shelter Medicine Program. Therefore, as with the gift annuity, you would be eligible for an income tax deduction the year the gift is made. A unitrust can sell capital gain property contributed to the unitrust without either the donor or the unitrust recognizing capital gain.
Reliable, Stable, Yet Generous Income
A charitable remainder annuity trust provides fixed annual payments for any number of beneficiaries. Upon termination of the annual payments to the beneficiaries, the remainder of the trust passes to the University of Florida Foundation for the benefit of the Shelter Medicine Program. Like a unitrust, an annuity trust can be for the life of one or more individuals or for a specified term up to 20 years. In a charitable remainder annuity trust, a fixed annual payment is negotiated at the inception of the trust. Thus, the beneficiary receives the same annual payment regardless of the performance of the trust assets. As with all of the life income gifts, the donor is eligible for a tax deduction for the value of the remainder interest in the year of the gift.
A Gift Designed for Growth, Then Income Back to You
The UF Pooled Income Fund combines the gifts of several donors who desire to support the University of Florida. All of the gifts are pooled together and invested. Each donor (or a selected beneficiary) receives a pro rata share of the fund’s income each year. At the death of the income recipient, the Shelter Medicine Program receives the donor’s share of the fund’s corpus. Therefore, the donor is eligible for a tax deduction in the year the gift is made.
The UF Pooled Income Fund has been specially designed for DONORS IN THEIR FORTIES OR EARLY FIFTIES who are looking for ways to fund their retirements. Our pooled income fund will be invested for growth of principal (rather than income) until 2015. During this period of growth, the type of donor who might consider a gift to our pooled income fund will presumably be working and thus will not have a strong need for income. At about the time the donor will be approaching retirement age, the investment emphasis of the pooled income fund will change to focus on producing income.