UNIVERSITY OF MINNESOTA FOUNDATION

Gifts that provide income

Charitable gift annuity

A charitable gift annuity is a simple way for donors to make a gift with some attractive benefits. A donor makes a gift of cash or publicly traded securities, and in exchange the University of Minnesota Foundation agrees to pay the donor, or others the donor has designated, a fixed amount annually for life, with the payments guaranteed by the foundation. At the termination of the gift annuity, the remaining assets support the campus, college, or program the donor has designated. 

Creating a charitable gift annuity

Charitable remainder trust

A charitable remainder trust is an excellent gift option for donors who wish to support the University of Minnesota while retaining income for themselves or others. This type of gift can be particularly useful for donors who want to increase current income and diversify assets without paying upfront capital gains tax.

How it works

University of Minnesota Foundation as Trustee

The Foundation may agree to serve as trustee of a charitable remainder trust if at least 50 percent of the remainder is designated to the University, and the amount of the gift for the University is at least $100,000 at the time the trust is funded. The trust beneficiaries must be at least 55 years old on the date payments begin (unless it’s a term of years trust) for the foundation to serve as trustee.

Managing charitable remainder trusts requires specialized skills because of their unique taxation, accounting, and reporting rules, as well as investment requirements.

Disclaimer

Information on this website is not intended as legal or tax advice. For information on how any gift may affect your tax situation, please consult with your own professional advisor.