Gifts With Tax Benefits

Extension of the IRA Charitable Rollover

If you are 70½ or older, you can make a gift to charity from your IRA to meet your annual distribution requirement. By making an IRA charitable rollover gift, you are able to avoid taxes on the IRA distribution while supporting our charitable mission. Contact your IRA custodian to make a rollover gift for 2013 directly to The UCLA Foundation.

Gifts of Appreciated Securities

How it Works

• You transfer appreciated securities that you have owned for at least one year to The UCLA Foundation.
• If your financial services provider holds the securities (including mutual fund shares) for your account, you can instruct that they be electronically transferred.
• If you have stock certificates, you can mail the unendorsed certificates and a signed stock power (available from your financial services provider or see sample here) in separate envelopes (see further instructions here). The gift is complete on the date of postmark of the later envelope
• UCLA then sells your securities and uses the proceeds as an unrestricted gift to support the highest priority needs of the campus, or to support whichever area of the University you choose

Benefits

• You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gain tax on the securities you donate.
• You can direct your gift to a specific fund or purpose.
• You have the satisfaction of making a significant gift now or funding a life-income gift that benefits UCLA later.

For more details about gifts of appreciated securities and how they can help you meet your charitable goals, contact a UCLA planned giving expert at 800.737.8252 or email giftplanning@support.ucla.edu

UCLA Donor Advised Fund

How it Works

• You make an initial gift of cash or appreciated securities to The UCLA Foundation to fund your UCLA donor advised fund (minimum to open new account: $250,000)
• You receive an immediate charitable tax deduction
• You preserve the flexibility to make annual distributions in support of whichever area of UCLA you choose
• Up to 50% of your annual distributions may support other favorite charities

Benefits

• You avoid capital gains tax on any full growth in value of securities or real estate (that you have owned for more than one year)
• You enjoy an immediate tax deduction for the full fair market value of the asset donated
• You establish a flexible vehicle for charitable giving

To explore how a UCLA donor advised fund works in detail and how it can help you meet your charitable goals, contact a UCLA planned giving expert at 800.737.8252 or email giftplanning@support.ucla.edu

Gifts of Cash

How it Works

• You send a check, wire funds, or contribute online to UCLA.
• We use your donation for the purposes you specify.

Benefits

• Use the simplest asset to make your donation ? no appraisal or acceptance requirements as with gifts of appreciated property.
• Deliver a gift that UCLA can use immediately.
• Receive a full charitable deduction, and apply it against a larger percentage of your taxable income than a deduction for a property gift.

Charitable Gift Annuities (Immediate)

How it Works

• You transfer cash or securities to UCLA.
• UCLA pays you, or up to two annuitants you name, a lifetime annuity.
• The principal passes to UCLA when the contract ends.

Benefits

• You receive an immediate income tax deduction for a portion of your gift.
• Your lifetime annuity is backed by a reserve and the full assets of UCLA.
• Your annuity payments are treated as part ordinary income, part capital gain income (15%), and part tax-free income.
• You have the satisfaction of making a significant gift that benefits you now and UCLA later.

Charitable Gift Annuity Calculator

Charitable Gift Annuities (Deferred)

How it Works

• You transfer cash, securities or other property to UCLA.
• Beginning on a specified date in the future, UCLA begins to pay you, or up to two annuitants you name, fixed annuity payments for life.
• The principal passes to UCLA when the contract ends.

Benefits

• Deferral of payments permits a higher annuity rate and generates a larger charitable deduction than with a regular Charitable Gift Annuity.
• You can target your annuity payments to begin when you need them, such as retirement or when a grandchild needs help with tuition payments.
• The longer you defer payments, the higher the effective rate you will receive.
• You have the satisfaction of making a significant gift now that benefits both you and UCLA later.

Charitable Gift Annuity Calculator - Deferred

Gifts of Real Estate

How it Works

• You deed your home, a commercial building, or investment property to UCLA.
• UCLA may use the property for its own purposes, or, more likely, will sell it and use the proceeds for our programs.

Benefits

• You receive an income tax deduction for the fair market value of the real estate, no matter what you originally paid for it.
• You pay no capital gain tax on the transfer.
• You can direct the proceeds from your gift to a specific UCLA program.

Charitable Bargain Sale

How it Works

• You sell your residence or other property to UCLA for a price below the appraised market value, resulting in a transaction that is part charitable gift and part sale.
• UCLA may use the property, but usually elects to sell it and use the proceeds of the sale for the gift purposes you specified.

Benefits

• You receive an immediate income tax deduction for the appraised market value of the portion of the property you donated.
• You pay no capital gain tax on the donated portion of the property.
• You use cash from the sale portion to retire a mortgage or purchase other property.
• You have the satisfaction of making a significant gift to UCLA during your lifetime.

Retained Life Estate

How it Works

• You transfer your residence, farm, or vacation home to UCLA subject to a life estate.
• You continue to live in the property for life or a specified term of years, while continuing to be responsible for all taxes and upkeep.
• The property passes to UCLA when your life estate ends.

Benefits

• You receive gift credit and an immediate income tax deduction for a portion of the appraised value of your property.
• You can terminate your life estate at any time and take an additional income tax deduction.
• You can have the satisfaction of making a significant gift now that benefits UCLA later

Gifts of Tangible Personal Property

How it Works

• You transfer valuable artwork, antiques, collectibles or other personal property to UCLA.
• UCLA may elect to hold the property and display or use it in the furtherance of its mission.
• UCLA may elect to sell the property at some point in the future and use the proceeds for its programs.

Benefits

• You receive gift credit and an immediate income tax deduction for the appraised value of your gift and pay no capital gain tax, provided your gift satisfies the related use requirements of the IRS.
• In certain cases, you can use personal property to fund a life-income gift, such as a FLIP unitrust, that benefits UCLA and provides you with income now.
• You can have the satisfaction of making a significant gift now to UCLA without adversely affecting your cash flow.

Gifts of Retirement Assets

How it Works

• You name UCLA as the beneficiary of your IRA, 401(k) or other qualified plan.
• After your lifetime, the residue of your plan passes to UCLA tax-free.

Benefits

• You can escape both income and estate tax levied on the residue left in your retirement account by leaving it to UCLA.
• Give the most-taxed asset in your estate to UCLA, and leave more favorably taxed property to your heirs.
• You can continue to take withdrawals during your lifetime.
• You can change the beneficiary if your circumstances change.

Gifts of Business Interests (Closely-Held Stocks)

How it Works

• You give shares of closely-held stock to UCLA.
• UCLA offers the stock back to your company for redemption or re-purchase and uses the proceeds for its programs.

Benefits

• You receive gift credit and an immediate income tax deduction for the appraised value of your shares, even if their original value was close to zero.
• You pay no capital gain tax on any appreciation that has taken place in the shares.
• Under certain conditions, you may be able to use closely-held shares to fund a life-income arrangement, such as a FLIP unitrust.
• You can have the satisfaction of making a significant gift that benefits both you and UCLA during your lifetime.

Gifts of partnerships Interests

How it Works

• You convey a partnership interest to UCLA.
• Depending on the circumstances, UCLA may choose to continue the partnership interest or to sell it and use the proceeds for its programs.

Benefits

• You receive gift credit and an immediate income tax deduction for the appraised value of the donated partnership interest, net of any liabilities that might pertain to it.
• Under certain conditions, you may be able to gift a partnership interest to a life-income arrangement, such as a FLIP unitrust.
• You can have the satisfaction of making a significant gift that benefits both you and UCLA during your lifetime.

Gifts of Life Insurance Policy

How it Works

• You can provide now for a future gift to UCLA by naming us owner and beneficiary of a policy insuring your life.
• You make annual gifts to UCLA in the amount of our premium payments.
• When the policy matures the proceeds are paid to UCLA, and we apply them to the program you have designated.

Benefits

• You can make a significant gift from income instead of capital.
• Your gifts offsetting our premium payments are fully deductible.
• You build our future financial strength.

Testamentary Life-Income Gifts

How it Works

• You write a will or revocable trust directing a bequest to UCLA.
• You provide that the bequest first create a life-income gift benefiting your heirs.
• After their income interest terminates, the remaining balance in the gift passes to UCLA.

Benefits

• One estate asset can benefit both UCLA and your heirs.
• Resulting charitable estate-tax deduction will lower the cost of providing for children and family.
• Provisions are revocable during your lifetime, increasing your planning flexibility

Charitable Lead Trust

How it Works

• You contribute securities or other appreciating assets to a charitable lead trust.
• The trust makes annual payments to UCLA for a period of time.
• When the trust terminates, the remaining principal is paid to your heirs.

Benefits

• The present value of the income payments to UCLA reduces your gift/estate tax.
• All appreciation that takes place in the trust goes tax-free to your heirs.
• The amount and term of the payments to UCLA can be set so as to reduce or even eliminate transfer taxes due when the principal reverts to your heirs.
• You have the satisfaction of making a significant gift to UCLA now that reduces the taxes due on transfers to your heirs later.

Charitable Lead Trust Calculator

Charitable Remainder Annuity Trust

How it Works

• You transfer cash, securities or other appreciated property into a trust.
• The trust makes fixed annual payments to you or to beneficiaries you name.
• When the trust terminates, the remainder passes to UCLA.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the annuity trust.
• You pay no upfront capital gain tax on any appreciated assets you donate.
• You or your designated income beneficiaries receive stable, predictable income for life or a term of years.
• You have the satisfaction of making a significant gift that benefits you now and UCLA later.

Charitable Remainder Annuity Trust Calculator

Charitable Remainder Unitrust

How it Works

• You transfer cash, securities or other appreciated property into a trust.
• The trust pays a percentage of the value of its principal, which is re-valued annually, to you or to beneficiaries you name.
• When the trust terminates, the remainder passes to UCLA.

Benefits

• You receive an immediate income tax deduction for a portion of your contribution to the unitrust.
• You pay no upfront capital gain tax on appreciated assets you donate.
• You or your designated beneficiaries receive income for life or a term of years.
• You can make additional gifts to the trust as your circumstances allow and qualify for additional tax deductions.
• You have the satisfaction of making a significant gift that benefits you now and UCLA later.

Charitable Remainder Unitrust Calculator