Planned Gift Options

Definition: A planned or deferred gift – A contribution that is committed to a charitable organization, but which does not become fully available to the organization until some future date. An exception is a lead trust.

Benefits to the donor

Deferred Gifts Accepted by the MSU Foundation

Benefits to the donor

1. It may present a donor with a way to satisfy his/her charitable intent, and make a gift of significant size beyond what that person might expect to make from current income.

2. It may permit a donor to take charitable income tax deductions.

3. It may minimize capital gains taxes.

4. It may reduce estate taxes.

5. It may offer the opportunity to create memorials during the donor’s lifetime and to develop a relationship with the institutions(s) to which the donation(s) is (are) directed, thus allowing the donor to decide if his/her trust is well placed.

Bequests - A revocable gift through a will to a charitable organization.

Insurance – Life (whole or term) or an accident policy (such as travel insurance). The organization may be revocable beneficiary or an irrevocable owner and beneficiary. A new policy may be given immediately after purchase and the donor makes annual charitable gifts equal to or greater than the annual premiums. An existing policy may be given with premiums still to be paid and the donor makes annual gifts equal to or greater than the annual premiums. A fully paid policy may be given outright to an organization.

Pooled Income Fund – A trust that accepts irrevocable gifts from a donor and combines them with similar gifts from other donors. Each donor retains a life income interest for himself or herself and/or one or more named beneficiaries living at the time the gift is made. Each beneficiary is entitled to a pro rata share of the pooled income fund’s earnings each year for life. At the termination of the life of the last beneficiary’s life interest, the organization severs the donor’s share and uses it for the benefit the organization.

Charitable Remainder Trust – An irrevocable trust arrangement established by the donor for the life of one or more persons or for a term not to exceed twenty (20) years, with the irrevocable remainder being distributed to one or more qualified charitable organizations. The two types of charitable remainder trusts are the charitable remainder unitrust and the charitable remainder annuity trust.

Charitable Remainder Unitrust – A trust that accepts a donor’s irrevocable transfer of money, securities, or property for the benefitof a charitable organization in exchange for a fixed percentage of the value of the amount transferred. The annual payments must not be less than 5% of the initial fair market value of the amount transferred. Additional contributions may be made to the trust at any time. At the termination of the last income beneficiary’s interest, the trust ends and the principal defers to the organization.

Charitable Remainder Annuity Trust – A trust that accepts a donor’s irrevocable transfer of money, securities, or property for the benefit of a charitable organization in exchange for a fixed dollar amount annual payment. The annual payments must not be lessthan 5% of the initial fair market value of the amount transferred. No additional contributions may be made to the trust once it is established. At the termination of the last income beneficiary’s interest, the trust ends and the principal defers to the organization.

Charitable Lead Trust – A trust created by a donor by giving assets to a charitable organization for a specified period of time. At the end of that period, the principal goes back to the donor or to someone designated by the donor.

Steps to take when considering a Planned Gift to the Morgan State University Foundation, Inc.

1. Decide what you want to accomplish by making a gift.

2. After the decision has been made, talk the Morgan State University Development Office about what you would like to accomplish by making a gift or gifts.

3. Consult family members, legal counsel, and financial advisors about your plans.

4. Negotiate the gift(s) that best suits you – remembering purpose, conditions, controls, reporting, and recognition.

For more information about donating to the MSU Foundation, contact:

The Office of Development
201 Truth Hall
443.885.3040 or development@moac.morgan.edu