Frequently Asked Questions
Planned giving refers to charitable gifts that require some planning before they are made. For example:
- Bequest to a charity through your will
- Life insurance designated to a charity
- Charitable remainder trust
- Charitable gift annuity.
Planned gifts are popular because they can provide tax benefits and, depending on the type of gift, income to the donor.
It is possible to save on taxes (income, capital gains, gift, estate, inheritance, and generation-skipping) by making a planned gift. Certain types of planned gifts allow you to enjoy tax savings while turning assets into income for yourself or others. This income may greatly exceed the income you are currently deriving from the asset used to make the gift.
Planned giving is a tool that helps you achieve your philanthropic goals while enhancing your financial plans and security.
Your gift can make a significant impact at the UO now or in the future. You can choose to direct your gift to support a specific area of the University.
One of our planned giving experts can assist you with the designation and legal language for the area(s) you would like to support.
Securities, real property, cash, business interests, insurance policies, retirement plans, and many other assets can be used to make a planned gift to the UO.
Creating a detailed will is critical to ensuring that your estate will yield benefits to your family and the organizations you support in ways that are important to you.
When preparing your will or living trust, it is important that you designate the University of Oregon Foundation, Taxpayer Identification Number 93-6015767, as the legal recipient of your gift.
The Foundation is a tax-exempt 501(c)(3) organization as described in the Internal Revenue Code, and was created specifically to receive, record, invest, and distribute gifted funds to the university in the most efficient manner possible.
Please contact our office for sample bequest language for the area(s) on campus that you want to support. Our office is available to review the gift language in your will with you and your legal advisor to ensure that it accurately directs us to use the gift as you desire.
You are not required to tell the UO about your plans, however, letting us know your plans will benefit all concerned:
- We can review the language in your document to ensure that as things change on campus, your donation can be put to the specific use that you desire.
- We can show our appreciation for your generosity.
- You will be offered membership in the Arnold Bennett Hall Society, an honorary organization for those who have included the UO in their estate plans.
Leaving your retirement plan or IRA (or a portion of it) to the university is a tax-wise gift. When a person inherits funds from your IRA (or other retirement account), that person will be liable for income taxes and possibly estate taxes. By leaving your IRA to the UO, these taxes are avoided because the university is a charitable entity.
In some cases, the tax liability owed by an individual has exceeded 75 percent of the value of the retirement plan.
A charity, such as the University of Oregon, can inherit this asset without any tax being imposed. While each dollar from your retirement plan will be worth less than a dollar to your heirs, the full dollar will come to the UO.
The University of Oregon Foundation (UOF) is the legal entity established to receive and manage assets for the UO (tax ID #93-6015767). Naming the UOF as the recipient of your retirement plan after your lifetime (or at the death of the survivor of you and your spouse) avoids all estate and income taxes on the plan assets.
To make this gift, a “change of beneficiary” form will be required. (If you live in a community property state and you designate that your qualified retirement plan come directly to UOF at your death, your spouse will need to sign consent to the designation.)
Since the beneficiary designation space is usually limited to one or two lines, we recommend that you work with the university to create a fund agreement that specifies the use on campus you intend for these funds.
You can keep your spouse and children as beneficiaries, and also include UO as the beneficiary of a portion of the plan. Upon your death, the plan administrator can “cash out” UO’s share of the account without affecting your family’s portion of the account, so that your heirs, and the UO benefit from your retirement savings.
The UO Office of Gift Planning does not provide tax or legal advice. We can provide information that demonstrates the benefits of planned gifts.
You should consult with your advisors about the way these benefits would impact your specific financial situation.
We can also provide draft language for your attorney to reference in preparing your estate planning documents.