Did you know that . . .

• You can receive income for life in exchange for a gift?

• Some gifts cost nothing now and allow you to leave a legacy at a level you might never have managed during your lifetime.

• Giving the School of Science appreciated property, like stocks or real estate, actually costs less than giving an equivalent amount in cash?

• You can benefit more from some assets if you give them away?
• You can make a substantial gift to the School of Science, provide for your heirs and avoid significant capital gains and estate taxes?

Gifts of Cash

The most common type of gift is the gift of cash—and with good reason. It is simple, straightforward and as easy as writing a check. An unrestricted gift for the greatest needs to the school is of particular benefit, but gifts may be designated for specific purposes.

Gifts of Appreciated Property

Charitable gifts of appreciated property—whether real estate or capital gain securities—can provide even greater tax benefits than a cash gift of equal value. You may take a charitable deduction for the full fair market value of the property, up to 30% of the adjusted gross income, while avoiding capital gains taxes.

Gifts of Tangible Personal Property

A gift of tangible personal property—such as furniture, art works, jewelry, antiques, books and collections—is deductible for its full fair market value (up to 30% of your adjusted gross income) if it is documented by a legitimate appraisal and if it satisfies the “related use” standard.

Gifts of Closely Held Stock

If you are a business owner and you contribute closely held stock, you may take a charitable deduction for the stock’s appraised fair market value. Besides increasing your cash flow, you also avoid the potential capital gains tax.

Wills and Estate Plans

A carefully prepared will or estate plan is the best way to ensure that your loved ones are provided for after your death and that your preferred charities are supported as you intend. They allow you to retain full use of your assets during your lifetime and still make a significant gift for the School of Science, especially at a level you might never have managed during your lifetime.

• Specific Bequest: The most popular type of charitable bequest, a specific bequest provides that the School of Science receives a specific dollar amount, percentage of your estate or piece of property.
  
Residuary Bequest: A residuary bequest provides that the School of Science receives all or a stated portion of your estate after all other bequests, debts, taxes and expenses have been distributed.


• Contingent Bequest: A contingent bequest can ensure that if circumstances make it impossible to carry out your primary provisions (as when your spouse or other heirs do not survive you), your assets will then pass to the School of Science rather than to unintended beneficiaries.



• Trust Under Will: You can bequeath a portion of your estate to be held in trust for a specified purpose, as stated in your will.
  
  
  

  Life Income Plans
  
  

  You can make a substantial gift to the School of Science while still earning income from the donated assets. These life income plans are some of the most flexible and fruitful options available to donors. They allow you to provide income for yourself, your heirs or both; they allow you to avoid significant capital gains and estate taxes; and they allow you to satisfy your wish to make a substantial gift to the school.
  
  
• Charitable Gift Annuities: One of the most common and popular ways to make a planned gift is with a charitable gift annuity. It is a simple contract between you and the school. In exchange for an irrevocable gift, the school (through the IU Foundation) agrees to pay one or two annuitants a fixed dollar amount each year for life. You may also choose a deferred charitable gift annuity. The school waits to begin your fixed payout until some specified point in the future (at least one year). In either case, the proceeds of the gift annuity become available at your death for the School of Science to use in whatever way you wished.
  
• Annuity Trust: A charitable remainder annuity trust pays a fixed amount (at least five percent of the fair market value of the trust assets when the trust is established) to you or your beneficiaries at least once a year. The payout is determined when you set up the trust, based on such factors as your age, the number of beneficiaries, your desired income and the length of the trust term.
  
  
• Unitrusts: A charitable remainder unitrust differs from an annuity trust by paying a fixed percentage—at least five percent—of the fair market value of the trust’s assets each year, rather than a fixed sum. That means the fixed income will fluctuate from year to year as the trust’s value fluctuates, but because the long-term market pattern is usually one of growth, you can generally expect payments to increase over time.