Planned Giving

Bequests
Bequests, which are gifts made through wills or living trusts, allow you to continue to benefit from your assets throughout your lifetime while enabling you to forever associate yourself with the program or service you choose to support. Because it does not take effect until your death, a bequest does not provide a current income tax deduction, but is fully deductible for estate tax purposes at the time of your death.

Bequests can be unrestricted (to be spent where the Foundation determines it is most needed) or restricted (to be used for a purpose that you specify). Through a bequest, you can endow scholarships, professorships or lectureships; support research program in such areas as cancer, heart disease, scleroderma, public health, Parkinson’s disease, autism, HIV/AIDS, child health or many other health-related areas; or strengthen existing patient care/community service programs.

Planning to make the Foundation of UMDNJ one of your beneficiaries? If so, please let us know. We can work with you and your advisors to be sure the bequest is planned and administered exactly as you wish.

Life Insurance
If you have more life insurance than you need, you might consider naming the Foundation of UMDNJ as a beneficiary and owner of a paid-up policy or even purchasing a new policy for that purpose. If the Foundation of UMDNJ is named as the owner and beneficiary, the policy premiums are tax deductible. This can be an easy way to make a meaningful gift. A simple change of owner and beneficiary form may be all that is required.

Gifts that Generate Income
There are several ways to contribute to the Foundation of UMDNJ now that would allow you to receive an immediate charitable deduction and retain income for yourself or your family members. These gifts enable you to provide for a surviving spouse, fund educational expenses or create a source of income for a loved one.

• Charitable Gift Annuity. In exchange for your gift of cash or marketable securities, the Foundation of UMDNJ agrees to pay you and/or your beneficiaries a specified life annuity. You decide if you want an immediate annuity, with payment to begin not later than one year from the date of the gift, or a deferred gift annuity, when payments begin at a specified future date. Charitable Gift Annuity rates are determined by your age at the time you fund the annuity; the older you are the higher the rate. There is a $10,000 minimum to establish a Charitable Gift Annuity. A portion of the contribution is tax deductible in the year of the gift.
• Charitable Remainder Trust. You can make a substantial gift and still retain an income interest for yourself and/or others by creating a Charitable Remainder Trust funded with cash or property transferred to the Foundation of UMDNJ as trustee. The trust makes payments to you and/or other beneficiaries you designate for life or a term of years. The remainder interest in the trust then ultimately passes to the Foundation for the benefit of a UMDNJ school or program that you designate. A portion of the contribution is tax deductible in the year of the gift. With appreciated property, the income tax on that appreciation can be reduced, postponed or potentially eliminated if the appreciated property is sold by the trust.
• Charitable Remainder Unitrust (CRUT).A CRUT is a type of charitable remainder trust that provides a fixed percentage (at least 5 percent of the fair market value of the assets in trust, computed each year) to be paid to you and/or your beneficiaries at least once a year. You can make additional contributions at any time. The amount paid to the beneficiaries will vary on a yearly basis, according to the annual re-evaluation of the trust principal.
• Charitable Remainder Annuity Trust (CRAT).A CRAT works just like a CRUT, except the payments from the trust are in a fixed amount (annuity) during the lifetime of the CRAT. Payments are made at least once a year to you and/or your beneficiaries for life or for a term of years not to exceed 20.
• Real Property Subject to a Life Estate. You can transfer a personal residence or farm to the Foundation of UMDNJ while retaining a life estate (the right to use the property for the remainder of your life). You are entitled to a federal income tax deduction for the fair market value of the remainder interest (i.e., the portion that will go to the Foundation of UMDNJ) at the time the property is transferred.