The College of Pharmacy accepts gifts in a variety of forms so that prospective donors may choose the types of gifts that they perceive to be the most efficient, personally satisfying, and financially advantageous for both themselves and the College. The types of gifts available can be categorized as:
Current or Annual Gifts and Deferred or Planned Gifts
Current gifts are contributions that can be put to use by the College immediately upon their receipt from the donor. They are usually made in one year, but can be a pledge over a few years.
Cash Gifts - A gift of cash is the most commonly used means of giving to the College. Most cash gifts are made through the College's Annual Fund.
Gifts of Securities - Gifts of common stocks, bonds, mutual funds or other appreciated securities may be made to the College. Depending on the circumstances, the securities will either be managed or liquidated to achieve the donor's goals. A popular benefit of such a gift beyond the charitable income tax deduction is that, in most cases, capital gains tax on the appreciation of the securities can be avoided.
Gifts of Property - Gifts of real estate and many other properties of value may be given to the College as well. These gifts can often receive the same tax treatment as gifts of securities: no capital gains tax plus deductibility at fair market value.
Matching Gifts - Many companies match the gifts their employees make to the College. If your employer has a matching gift program, your own gift to a specific area of support may be doubled or even tripled. If your company has a matching gift program, the Human Resources Department at your company will be able to provide you with additional details and a matching gift form.
Gifts intended for use by the College may be made to the University of Illinois Foundation and designated by the donor for the UIC College of Pharmacy. For information on designating the use of your gift, visit the Annual Giving and Endowed Giving sections of this site. For more information, contact our office by phone at (312) 355-0833 or via email at email@example.com.
Deferred gifts, or planned gifts, are contributions that cannot be used by the College until some future date. Deferred gifts are the result of careful planning that integrates the donor's charitable gift into his or her overall financial, tax and estate planning objectives in order to maximize the benefits for both the donor and the College. Each of the deferred gifts described below is closely regulated by law and requires special arrangements and tax treatment.
Bequest - The most common form of planned giving, a bequest is made through a will or living trust. Bequests may be stated as a percentage of the estate, as the residual of the estate, or for a specific dollar amount. Since a will can be changed, no income tax benefits are associated with a bequest. However, the owner's estate is reduced by the amount of the bequest for estate tax purposes.
Charitable Gift Annuity - A Charitable Gift Annuity is a contract between the College and the donor whereby the College agrees to pay a fixed annuity to a maximum of two beneficiaries (immediately or deferred) in exchange for the irrevocable transfer of assets by the donor to the College. A portion of the annuity payment may be income tax-free, and an income tax deduction may be allowed for the difference between the value of the gift and the present value of the annuity.
Charitable Lead Trusts - With a Charitable Lead Trust, the College receives income from the donor's assets for a specified period of time, after which the asset is transferred back to the donor or to the donor's heirs. A lead trust can reduce gift and estate taxes or provide a charitable deduction for the donor.
Charitable Remainder Annuity Trust (CRAT) - A CRAT may be funded through a gift of stock, cash or other assets. This type of gift provides for a predictable, fixed life-long income for the donor and his or her beneficiaries. No additional contributions may be made to a CRAT; however, additional annuity trusts may be established. The donor may claim a tax deduction for the estimated proportion of the assets that will ultimately go to the College.
Charitable Remainder Unitrust (CRUT) - A CRUT is very similar to the CRAT outlined above. The trust provides yearly fluctuating income to the donor or his/her beneficiaries for a specified number of years, or for life. Additional contributions may be made to the trust, and upon the death of the last beneficiary. The College receives the principle and uses it in accordance with the donor's wishes. The estimated remainder is tax deductible.
Deferred Gift Annuity - As with the Charitable Gift Annuity, a donor makes a gift now and receives an immediate income tax deduction. However, in this instance the donor begins receiving the annuity payments at a future pre-determined date. Due to the compounding of the gift's income, the amount of the annuity payments can be significantly greater than the annuity payments under the Charitable Gift Annuity.
Life Insurance - The College can be named the beneficiary of a life insurance policy to create a gift of much greater value than the actual money paid by the donor. A donor may contribute a "paid up" policy to the College and receive an income tax deduction equal to the policy's cash value. Or, a donor can name the Foundation as the beneficiary of the policy resulting in estate tax savings. Or, a donor can name the College owner and beneficiary of a new policy and receive an income tax deduction for the premiums paid.
Pooled Income Fund - A donor's gifts of cash, securities or other assets to the College's Pooled Income Funds are combined with the contributions from other donors and invested jointly in a diversified portfolio. The donor receives the income from the fund proportionate to the value of his or her contribution and an income tax deduction based on the estimated principle that will be left to the College.
Retirement Account - A donor may name the College the beneficiary of the account with the value being fully deductible for estate tax purposes. Income in respect of a decedent is avoided since the University is tax-exempt.
Retained Life Estate - A donor may transfer the ownership of a personal residence or a farm to the College, while retaining the right to live there for the remainder of his or her life. The donor will be entitled to a charitable income tax deduction for a portion of the appraised fair market value of the property at the time of the transfer. In addition, the donor escapes capital gains tax on the property's appreciation and the estate will be entitled to a charitable tax deduction.
Gifts intended for use by the College are made through the University of Illinois Foundation, and designated by the donor for the UIC College of Pharmacy. For information on designating the use of your gift, visit the Annual Fund and Endowed Gifts sections of this site.
For more information, contact our office at (312) 996-7785 or firstname.lastname@example.org.