A gift to the University of Wisconsin School of Pharmacy is a gift to the future of education and a direct investment in its people and programs. Donations can be unrestricted or directed to any fund or program a donor wishes, including areas other than the featured priorities of the People and Programs Initiative. You may choose to create a new endowed fund, and/or add to an established program that you already support.
Cash and/or Pledges
Gifts may be given through a one-time cash payment or a pledge directly to the UW Foundation (insert link here to the UW Foundation's home page), for the School of Pharmacy. Pledges may be made on a monthly, quarterly, semi-annual, or annual basis, over a set number of years.
Corporate Matching Gifts
More than 1,500 American companies have adopted corporate matching gift plans to help support higher education. Under these plans, the corporation matches gifts made by employees, officers, directors, and in some cases spouses and/or retired employees, officers or directors. Consult your company's personnel or community relations department for guidelines.
Securities
Long-term appreciated securities are those which (1) have been owned for more than one year, and (2) have increased in value. If you itemize deductions, such a gift would entitle you to a federal income tax deduction for the full fair market value of the securities on the date of the gift, up to a maximum deduction of 30% of your adjusted gross income for the year.
For both gifts of cash and appreciated property, contributions in excess of the deduction limitations may be carried over and deducted in the five tax years following the gift.
If you donate short-term securities (those held for less than one year) and you itemize, you will be entitle to a federal income tax deduction for only the purchase price of the securities.
In the case of depreciated securities, which have declined in value since purchase, the Foundation suggests that you sell them, take the tax loss, and donate the cash proceeds. This will provide the maximum tax benefit from the gift.
Property
If you wish to make an in-kind gift of real property, the Foundation will weigh its potential value to the School and whether a management plan can be implemented to maximize that potential, in considering whether to accept the gift. In most instances, such a property will be sold; in other cases, it may be kept as an investment. Many of the tax advantages which apply to gifts of appreciated securities also apply to gifts of appreciated real property.
Gifts of tangible personal property such as works of art, furniture, equipment, collections, and personal mementoes are frequently made to the Foundation for a use related to the purposes and functions of the School. For tax purposes, the date of the gift is the date of physical delivery, and the value is the item's fair market value on that date as determined by a competent appraiser (if over $5,000).
Corporate Gift
If you are an owner or CEO of a business, you might wish to consider making a corporate gift through which you may derive federal tax benefits as well as additional benefits in some states.
Life Insurance
A gift of life insurance may allow you to make a sizeable gift to the School at a relatively low cost. To make such a gift, you would name the UW Foundation irrevocable beneficiary of a life insurance policy, then deliver and assign ownership of the policy to the Foundation. When you pay the annual premium, and if you itemize, you will be entitle to deduct the amount of the premium.
Gifts of paid-up life insurance policies may offer estate-planning possibilities. The Foundation may be designated as the primary, secondary, remainder or residual beneficiary of a policy. There are a variety of policy options available. You will want to discuss your plans with the Foundation's Planned Giving staff and/or an insurance advisor.
Life-Income Planned Gift/s
Suppose you wish to make a substantial gift for the benefit of the University of Wisconsin School of Pharmacy, but you still wish to retain income. You might consider a charitable remainder trust in which you irrevocably transfer cash, securities or other property to a trustee such and the UW Foundation. In turn, the trustee distributes a certain percentage or amount of the annual income from the property to you and/or another named beneficiary(ies) for life, or for a specific term of years. The remainder interest in the property would then pass to the Foundation, for the benefit of the School of Pharmacy (in your area of interest). You would be entitled to a federal income tax deduction for the value of that charitable remainder interest, which is based on the number and ages of life income beneficiaries and the percentage of annual payout you and the trustee agree upon.
Some advantages of these charitable remainder trusts are:
- If you fund the trust with appreciated property, you will recognize no capital gain on the appreciation, and the trust will be funded with the full fair market value of the gifted asset.
- You may designate anyone alive at the time of creation of the trust, including yourself and your spouse, as income beneficiary(ies).
- The trust itself is not taxed.
- The burden of investment and management decisions regarding the corpus of the trust is removed.
- If the trust is funded with cash or tax-exempt securities, the trustee can purchase or retain such securities to produce tax-exempt income for yourself and/or other beneficiaries.
- The asset is essentially removed from your estate, which may mean additional tax benefits.
Charitable Remainder Annuity Trust
There are several forms a trust can take. Charitable remainder annuity trusts provide that a specified dollar amount (at least 5% if the fair market value of the assets at the time the trust is created) be paid at least once a year to the beneficiary(ies) for their lifetime(s) or for a term of years, not to exceed twenty.
Charitable Remainder Unitrust
Charitable remainder unitrusts provide that a fixed percentage (at least 5% of the fair market value of the assets in trust, computed each year) be paid to the beneficiary(ies) at least once a year. In a unitrust, however, the amount paid to the beneficiary(ies) will vary on a yearly basis according to the annual reevaluation of the trust principal.
Pooled Income Fund
Pooled income funds are trusts into which two or more donors irrevocably transfer property, contributing the remainder interest in the property to the UW Foundation (for the School of Pharmacy or other purpose). Each donor retains an interest in the annual proceeds based upon the proportionate share of assets which he or she contributed to the total fund.
Charitable Lead Trust
Unlike the trusts previously described, the charitable lead trust provides income--either a percentage or a specified amount--to the UW Foundation (for the School of Pharmacy or other purpose) for a specific number of years. At the termination of this period, the principal is returned to you or others whom you have designated. Under one type of charitable lead trust you include the income in your taxable income, but are entitled to a corresponding charitable deduction, if you itemize, of the amount of income paid to the Foundation in that year.
Charitable Gift Annuity
Charitable gift annuities are similar to charitable remainder trusts in that you make an irrevocable gift to the Foundation in exchange for life income payments. A charitable gift annuity is a contract between you and the Foundation, under which the Foundation guarantees payment of the annuity, unlike a trust which pays the annuity from its assets alone. The income stream from such an arrangement can be higher than current market rates. (Note: gift annuity payment rates are based on age.)
Real Property Subject to a Life Estate
Under an agreement to donate real property subject to a life estate, you may transfer a personal residence or farm to the UW Foundation, while retaining a life estate (the right to use the property for the remainder of your life). You are entitled to a federal income tax deduction for the fair market value of the remainder interest in the property at the time it is transferred.
Bequest
A bequest is a very simple and uncomplicated way to help provide for the future excellence of the University of Wisconsin School of Pharmacy. A bequest may be a specific sum, a percentage, or the residue of an estate, and may consist of cash, securities, life insurance proceeds, real estate, and/or personal property. A bequest may be made through a will or by a living trust, and should be directed to the "University of Wisconsin Foundation, a not-for-profit corporation with principal offices in Madison, Wisconsin, for the benefit of the UW School of Pharmacy for¡¦" (you determine if there is a specific area within the School you want your bequest to impact).
Will
A carefully planned will can preserve a maximum amount of an estate for the surviving members of your family and others, such as the School of Pharmacy, whom you wish to benefit.
Retirement Plan Assets
Many individuals participate in various kinds of retirement plans: IRA's, Qualified Pension Plans, Keough Plans, etc. In some cases, there may be significant advantages to suing retirement-plan assets for charitable giving.
Estate, Financial and Philanthropic Planning
Estate planning is the process of working out, with an attorney, accountant, trust officer, life insurance agent, or other advisory, an orderly and desirable arrangement for the disposition of your estate. The primary objective in any plan should be the fulfillment of your wishes regarding the security of your family and others that you wish to benefit. Tax consequences, although secondary, are an important part of estate planning and are often directly related to the accomplishment of your primary goals.
A well drafted estate plan can provide benefits to you and/or your family and also make it possible for a substantial gift to be made to a charitable organization such as the University of Wisconsin Foundation at a relatively small cost to you or your estate.
The importance of working with professionals in estate planning and making a will or establishing a trust cannot be overemphasized. Whenever desired, planned giving counsel from UW Foundation will be available to consult with you and your attorney or other advisor. If you decide to include a gift to benefit the UW School of Pharmacy in your will, we encourage you to let the School and/or the UW Foundation know about your decision, so that:
- our professionals can review the language of your will (related to your charitable intentions) to ensure that your gift arrangement carries out your specific wishes;
- the School of Pharmacy can integrate your gift into its long-term future planning; and
- we can thank you and recognize your generosity by including you in one of the School of Pharmacy's "Giving Societies."
For more information about giving, please contact:
Linda Halsey
Director of Development, School of Pharmacy
University of Wisconsin Foundation
P.O. Box 8860 Madison, WI 53708
(608) 263-6172