Charitable gifts reward donors in many ways. There is the satisfaction of supporting an important cause, the excitement of seeing your gift lead to positive change, and—in many cases—tangible financial benefits to you and/or another beneficiary, through tax advantages and the retention of lifetime income from the donated asset.
| Type of Gift |
May Be
Funded With |
Amount Needed to Establish |
Benefits for You |
Benefits for UW-Madison |
| Current / Outright Gifts |
Cash, appreciated securities, closely held securities, real estate, personal property |
No minimum or maximum |
Usually fully deductible for 100 percent of the fair-market value, subject to certain limitations |
Funds are immediately available for use |
| Charitable Lead Trusts |
Cash, appreciated securities, closely held securities, real estate |
$500,000 |
Freezes value of assets contributed for gift- and estate-tax purposes |
Provides steady flow of income for a period of years |
| Revocable Trusts |
Cash, appreciated securities, closely held securities, real estate |
To be determined by Personal Counsel |
All or part of the amount placed in the trust is available if needed by the donor; if a commercial trustee is chosen, may relieve the donor of the responsibilities and headaches of asset management; no tax deduction is available for this kind of trust |
A very high percentage of revocable trusts are never revoked, giving promise of future funding to the Foundation |
| Will provisions |
Cash, appreciated securities, closely held securities, real estate, personal property |
No Minimum |
Estate-tax charitable deduction is available for the full fair-market value of the bequeathed asset; may reduce estate and death taxes, thereby increasing the size of the estate available for heirs |
A very high percentage of will provisions are never revoked, giving promise of future support to the University |
Life-Income Gifts (irrevocable)
| Type of Gift |
May Be Funded With |
Amount Needed to Establish |
Benefits for You |
Benefits for UW-Madison |
| A. Charitable Gift Annuities |
Cash, securities, some closely held securities |
$10,000 |
Guaranteed fixed income; immediate tax deduction equal to the Foundation’s remainder interest in the gift; favorable tax treatment of annuity payments |
Assures future funding of the designated purpose |
| B. Deferred-Payment Charitable Gift Annuities |
Cash, securities, some closely held securities |
$10,000 |
Immediate tax deduction equal to the Foundation’s remainder interest in the gift; future source of fixed income; favorable tax treatment of annuity payments |
Assures future funding of the designated purpose |
| C. Charitable Remainder Unitrusts |
Cash, securities, some closely held securities, real estate |
$100,000 |
Immediate tax deduction equal to the Foundation’s remainder interest in the gift; variable income that may provide a hedge against future inflation; avoidance of 100 percent of capital-gain tax liability on gifted property. Can be tailored to your situation; permits more than two income beneficiaries; allows deferred income if desired; excellent vehicle for real estate gifts |
Assures substantial future funding of the designated purpose; donor may select the trustee; the Foundation could, if desired, use trust as collateral for loan |
| D. Charitable remainder annuity trust |
Cash, appreciated securities, some closely held securities |
$100,000 |
Immediate tax deduction equal to the Foundation’s remainder interest in the gift; fixed income; avoidance of all capital-gain tax on gifts of appreciated property; may provide tax-free income |
Same as unitrust |
Gifts of Insurance
| Type of Gift |
Amount Needed to Establish |
Benefits for You |
Benefits for UW-Madison |
| Gifts of insurance where the Foundation is made the owner and beneficiary of a permanent policy |
No Minimum |
Immediate income-tax deduction for the value of the policy at the time of transfer; future premium payments may be deducted as gifts |
Assures substantial future funding of the designated purpose; the Foundation also may borrow against the policy or cash it in |
| Gifts of insurance where the gift is a paid-up policy |
No Minimum |
Immediate income-tax deduction for the value of the policy at the time of transfer |
Assures substantial future funding of the designated purpose; the Foundation also may borrow against the policy or cash it in |
| Gifts of insurance where the Foundation is the beneficiary but not the owner |
Unlimited |
No tax deduction, but this enables you to leverage your gift substantially; you may change the beneficiary later or borrow against the policy |
Promise of future support to the University |
