INCOME GIFTS - ESTATE GIFTS - RETIREMENT GIFTS - PERSONAL PROPERTY - REAL ESTATE
A charitable gift annuity is a simple agreement between you and Harvard. In exchange for your irrevocable gift or cash, securities, or other property, Harvard promises to pay you a guaranteed income, in quarterly installments, for your life. In general, individuals who establish an immediate payment charitable gift annuity are interested in maintaining or enhancing their income with fixed payments. When you transfer low-yielding stocks or cash from a money market account to a Harvard annuity with a higher rate of return, your income will increase. The charitable gift annuity offers a guaranteed rate of return based on the age(s) of the beneficiary or beneficiaries when the gift is made. Annuity rates are set by the Harvard Management Company. The minimum contribution to establish an immediate or deferred payment gift annuity is $25,000. The maximum number of income beneficiaries is two and income beneficiaries must be at least 40 years old. Your deduction may vary slightly from month to month based on the IRS discount rate in effect at the time of your gift.
A charitable gift annuity - with payments deferred for a period of years - can be a useful retirement planning device. You fund your annuity with Harvard today and receive an immediate income tax deduction, but specify that your income payments begin on a future date, typically coinciding with your retirement. You gain a current income tax deduction and a guaranteed rate of return both of which are higher than those from an immediate payment gift annuity. If you have reached the limit of allowable contributions to your IRA account, Keogh, or other qualified pension plan, the deferred payment gift annuity can be an attractive tax-deductible option to supplement your retirement income. Because of the high charitable deduction, deferred payment gift annuities are particularly popular choices for people over the age of 40 who are in their peak income earning years.
The charitable remainder unitrust is an arrangement that enables you to contribute to Harvard Medical School while retaining an income for life or for a term of years. The unitrust pays the income beneficiary a variable income, based on a fixed percentage of the trust assets as determined once each year. One of the advantages of the unitrust is that your income can increase as the trust principle grows over time. On the death of the last income beneficiary or conclusion of the term of years, the trust terminates and the principal is released to Harvard for a purpose chosen by you-for example, to create a named scholarship fund, to support basic science research, or to endow a professorship. A unitrust gives you the flexibility of providing income for you, your spouse, your children, or another beneficiary, and of helping to meet such important objectives. Your trust can be invested in two different ways: Endowment optionA Harvard-managed unitrust can be established with an irrevocable gift valued at $100,000 or more. Typically, cash or publicly traded stocks and bonds fund an annuity trust. Income beneficiaries must be at least 50 years old. Your trust is invested and administered by Harvard at no cost to you, and you may designate the future use of your gift at Harvard Medical School.
Charitable remainder annuity trusts enable you to contribute to Harvard Medical School while providing an income for yourself and/or another beneficiary for life or a term of years. The annuity trust pays you and/or another designated beneficiary a fixed annual income (in quarterly installments), based on a percentage of the initial market value of the trust. Depending on the funding assets and investments, the trust may pay you tax-free income. When you establish an annuity trust, you receive an immediate federal income tax deduction for a portion of your gift. With a gift of appreciated property, you can avoid the 20 to 28 percent capital gains tax. You can also realize significant estate tax savings. A Harvard-managed annuity trust can be established with an irrevocable gift valued at $100,000 or more. Typically, cash or publicly traded stocks and bonds fund an annuity trust. Income beneficiaries must be at least 40 years old. Your trust is invested and administered by Harvard at no cost to you, and you may designate the future use of your gift at Harvard Medical School.
Also see: Charitable Remainder Annuity Trust - Charitable Gift Annuity - Charitable Remainder Unitrust - Deferred Gift Annuity - Charitable Lead Trust A pooled income fund operates like a mutual fund. Your gift is combined with gifts from other alumni and friends, and is assigned units in an investment pool. The variable quarterly income you (and/or your beneficiary) receive reflects the actual earnings of the fund attributable to your units. Pooled income funds can accept cash or readily marketable securities that are not tax exempt. The minimum initial gift needed to establish a pooled income fund account is $25,000. Additional gifts of $2,500 or more may be made at any time.
There is a way to make a charitable gift to Harvard Medical School that will eventually be returned to your children or grandchildren. A charitable lead trust allows to you make a significant gift, ensure future economic security for your family, and reduce income, estate and gift taxes now and in future years as well. Establishing a charitable lead trust is simple. You transfer assets-such as cash, publicly traded securities, closely held stock, bonds, income-producing real estate or a combination of these-to a trust. Harvard Medical School receives its gift in the form of annual payments from the trust over a period of several years. In effect, you are "lending" the assets to Harvard for the term of the trust. Then at the end of the time period you designate, the principal of the lead trust passes to your heirs, typically children or grandchildren. Not only can you avoid tax in the income of such a trust, there can also be very attractive estate and gift tax savings. Please contact Ms. Mary Moran Perry by email at mperry@hms.harvard.edu or by phone at (617) 432-4818 to discuss Life Income Gifts or other planned giving options. |
Giving to HMS 