Support the improvement of urban education…your way.

Planned giving allows you to retain some aspect of the asset or assets you use to make a gift, such as the right to receive income. There are many ways to make a planned gift to the Urban Education Institute, including charitable gift annuities, charitable remainder trusts, charitable lead trusts, gifts of real estate, gifts of retirement plan assets, and bequests.

Life income gifts, such as charitable gift annuities or charitable remainder trusts, allow you to receive income while supporting the Urban Education Institute’s mission to bridge the achievement gap for urban students.

Charitable Gift Annuities

You can transfer cash or securities to UEI in exchange for an annuity that pays a fixed income to you and/or your spouse for the duration of your life. Annuitants must be age 55 or older to begin receiving payments. A gift annuity requires a gift of $10,000 or more and is guaranteed by the University of Chicago. The annuity rate is based on your age. You are entitled to a charitable deduction equal to the present value of the assets that are projected to remain at the time the annuity payments cease; that is, the portion which will be gifted to UEI. Part of each annuity payment will be taxed at ordinary income rates, part at the applicable capital gains rate if appreciated property is used, while a portion may be tax-free.

If you do not have an immediate need for additional income, you can choose to defer receiving income from your annuity for a specified term of years. The benefit of a deferred payment charitable gift annuity is that you can make your gift now, but postpone receiving payments for several years. The longer your deferral period, the higher the annuity rate the University is able to offer and, by extension, the higher your annuity payments will ultimately be. A deferred payment charitable gift annuity still entitles you to an immediate charitable deduction at a time when your income tax bracket is likely to be higher.

Charitable Remainder Trusts

A charitable remainder annuity trust pays a fixed amount for the entire term of the trust, at least 5% of the trust’s funding value - regardless of the changing value of the trust assets. These fixed payments continue for your life and the lives of any other beneficiaries. Additional contributions may not be made to this type of trust.

A charitable remainder unitrust is similar to an annuity trust, but is more flexible and offers potentially higher income possibilities. The annual income from a unitrust is a fixed percentage of the fair market value of the trust assets, as revalued each year. Additional contributions may be made to a unitrust at any time. Because the income payments to you are tied to the changing value of the trust assets, your payments will fluctuate with the market. As the value of the trust assets grows over the years, your income payments will increase. However, if the value of the trust assets declines, your income payments will decrease.

Charitable Lead Trusts

A charitable lead trust provides substantial capital support to UEI now, and later passes assets on to heirs with minimal or no gift or estate taxes. A lead trust is an ideal vehicle for providing support for UEI’s most immediate needs. You transfer assets into the trust that will benefit UEI for either a term of years or for your lifetime, as you decide.

Gifts of Real Estate

An outright gift of your personal residence, farm or second home is an excellent way to make a substantial gift to support UEI now, and will provide you with a charitable income tax deduction based on the full fair-market value of the real estate. Making a gift of real estate can help you avoid capital gains tax liability for the appreciation of the property.

If you would like to make a gift of real estate but would still like the use of the property, you may consider a retained life estate. This type of arrangement allows you to make a gift to UEI of your personal residence, farm or second home immediately, but maintain the use of the property for the duration of your life and that of another person, if you wish. In addition, you would receive an immediate income tax deduction for the present value of the remainder interest that will pass to UEI at the death of the last surviving tenant. At the termination of the life estate, the property will pass directly to UEI without the need for probate or probate-related expenses.

Gifts of Retirement Plan Assets

Assets in individual retirement accounts (IRAs), 401(k) plans, profit-sharing plans, Keogh plans, and 403(b) plans can be used to make a significant gift to support UEI. You can easily designate UEI as a direct beneficiary of all or part of your retirement plan, by contacting your plan’s administrator for a change of beneficiary form. The donated assets will pass to UEI income and estate tax-free.

Bequests

There is no minimum amount for a bequest, and gifts can be made with cash, securities, real estate, tangible personal property, or retirement plan assets. The value of a charitable bequest is fully deductible for estate tax purposes. You may make a specific bequest of a designated sum or asset, such as real estate, a piece of art, or particular securities. It is also possible to make a pecuniary bequest of a fixed dollar amount stated in dollars (“$150,000”), a percentage of the estate (“25% of my estate”), or as a formula (“an amount equal to…”). A residuary bequest is a gift of all or some portion of your estate that remains after other bequests, taxes and expenses have been paid.

For more information on these and other ways the Urban Education Institute can benefit from your support, please contact Raymond Jackson ( 773.702.2313 | rjackson86@uchicago.edu ) or visit the Office of Gift Planning.