Life Income Gifts
Life income gifts allow you and/or loved ones to receive income while making a significant gift to Pitt. These gifts may also provide you:
- a charitable income tax deduction;
- investment diversification;
- the possible bypassing of capital gains tax on appreciated property;
- reduced estate taxes; and
- the satisfaction of supporting important work during your lifetime.
There are several types of life income gifts. Two of these are:
- Charitable Gift Annuities
- Charitable Remainder Trusts
Charitable Gift Annuities
A gift annuity is a simple contract between you and Pitt. It offers fixed payments for life. Part of each payment may be tax free, part may be taxable at your ordinary income tax rate, and—if the annuity is funded with appreciated securities—part of these payments may be taxable at the capital gains tax rate, which is currently 15 percent.
With a charitable gift annuity, you can receive an immediate income tax deduction based on the amount of your gift and the income you receive. You also may increase your after-tax income, particularly if stocks are used to fund the annuity. The minimum donation to create a gift annuity is $10,000.
Charitable Remainder Trusts
With a charitable remainder trust, a trustee is appointed by you, the donor. The trustee invests the trust assets and provides you or the named beneficiaries with regular income. The income is based upon a percentage of the value of the trust.
You may receive a charitable income tax deduction based on the amount of the gift, the ages of the beneficiaries, and the amount of income received. If you use appreciated securities to fund the trust, you can avoid paying capital gains tax on the appreciation. This may save you significant money.
Gifts of Life Insurance
Naming Pitt as owner and beneficiary of a paid-up policy entitles you to a deduction equal to the lesser of your cost basis in the policy or its replacement cost. Naming Pitt as owner and beneficiary of a policy that is not paid up provides you with a tax deduction approximately equal to the policy's cash surrender value.
You also may purchase a new policy and name Pitt as owner and beneficiary. By donating the money required for the premium payments directly to Pitt, you may receive charitable income tax deductions for these gifts
Gifts of Retirement Assets
Gifting assets held in an IRA or qualified retirement plan can be a simple and tax-wise option. These assets receive the greatest tax advantage when they are used as gifts to charitable organizations at death. Selecting Pitt as a beneficiary protects these assets from both income and potential estate taxes that could significantly consume their value. You could:
- name Pitt as the beneficiary of your retirement plan; or
- provide for your surviving spouse or children first, and then Pitt by naming a charitable remainder trust as your plan’s beneficiary.
Bequests
A charitable bequest for the benefit of Pitt can be included in the body of your will or in an addition to your will (known as a “codicil”). You also may describe a specific purpose for the use of your bequest.
As you consider making a bequest to the University of Pittsburgh, the following language may be useful to you and your attorney:
I give the University of Pittsburgh of the Commonwealth System of Higher Education, Pittsburgh, Pennsylvania, 15260 [the sum of $______ or _____ shares of stock, specific real estate, other property] or [a ____% of] to be used by the University [for its general purposes] or [in accordance with a Statement of Intent previously agreed to by the University and me].
Make a gift through Pitt Online Giving