AVENUES FOR GIVING

Plan Your Giving, Save on Your Taxes

With planned giving, donors can realize tangible tax benefits for themselves and their families as well as for the University ofHawaiʻi. Cash, real estate, stocks, bonds and other financial instruments are all avenues for a planned gift and its resulting tax savings. Donors are also able to fulfill their philanthropic goals by creating a legacy at the University ofHawaiʻi, aiding the University in its goal towards greater excellence.

Donors can designate their planned gifts for scholarships, faculty positions, academic programs, research, or a facility, to name just a few. Alternatively, donors can leave their planned gifts as undesignated, which will afford the University the flexibility to provide funding where the neeed is greatest.

The right type of planned gift will depend greatly on a donor's personal situation and objectives. Accordingly, the UH Foundation and its experienced staff are committed to helping you discover the best gift planning solution that achieves all of your financial and charitable giving goals.

Planned giving is a classic "win-win" situation for donors and the University of Hawai`i.

For more information on estate and gift planning, request a customized planned gift illustration, or setup a personal visit please contact, in confidence, the:

Go to www.UHFLegacyGift.org to view inspiring donor stories, download informational brochures, or create your own customized gift illustration.

Five Most Popular and Simple Gift Planning Methods

1. You can give cash, appreciated securities, or real estate during your lifetime to the University of Hawaiʻi Foundation, either in one lump sum or, depending on the asset you wish to contribute, by pledging an amount over a number of years. Giving outright provides an immediate benefit and you can see your gift put immediately to good use.
   
   
2. You can make a testamentary gift through your Will or Revocable Living Trust. You can designate a percentage of your estate, a specific dollar amount, the rest and residue of your estate, or a combination of these options. This enables you to retain the use of all of your assets during your lifetime and make your gift when you no longer need those assets.
   
   Click here to see more information on Bequests.
   Click here to view an example of a Bequest.
   
   
3. You can make the UH Foundation, for the benefit of UH, the beneficiary of a life insurance policy or a qualified retirement plan such as an IRA, a 401(k) or a 403(b).
   
   Click here to see more information on Beneficiary Designations.
   Click here to view an example of a Beneficiary Designation.
   
   
4. You can make a gift of cash, appreciated securities, or real estate to, or in exchange for, a life-income plan, such as a Charitable Gift Annuity, deferred payment Charitable Gift Annuity, or Charitable Remainder Trust. The significant benefit here is that you receive lifetime income, an income tax deduction, and capital gains savings (if applicable). After you pass away, the remaining assets are distributed to the UH Foundation for the benefit of UH.
   
   Click here to see more information on Charitable Gift Annuities.
   Click here to view an example of a Charitable Gift Annuity.
   
   Click here to see more information on Charitable Remainder Trusts.
   Click here to view an example of a Charitable Remainder Trust.
   
   
5. You can give a combination of an outright gift and a deferred gift. This enables you to start or fully endow a program or scholarship during your lifetime, and make a provision in your Will or Revocable Living Trust, or through a life-income plan, to add significantly to the endowment after you pass away.

Types of Planned Gifts (click to go to description)

Bequest
Charitable Gift Annuity
Charitable Remainder Trust
Life Estate Reserved
Beneficiary Designation
Charitable Lead Trust

Bequest
What:		A bequest is the most frequently utilized planned giving method in the United States. Simply stated, a charitable bequest provides for a distribution of cash or property to charity upon a donor’s passing. The charitable bequest provision is usually contained in or can be easily added to a donor’s Will or Revocable Living Trust. The three most common types of bequests are as follows: Specific dollar amount, e.g. $10,000, Specific asset, e.g. my Picasso painting, or A percentage of the estate, e.g. 10% of my residue estate.
Planned giving frequently involves a combination of bequests types. Donors might also want to consider a contingent charitable bequest. A contingent charitable bequest takes effect only if the primary beneficiary is no longer living upon the donor’s death. For example, a donor may stipulate that 10% of his estate goes to a sibling. However, if the donor’s sibling is deceased at the time of his death, then 10% goes to the UH Foundation. Click here to view an example of a Bequest.
Charitable Gift Annuity (CGA)
What:		A CGA is a planned gift in which a donor contributes cash or property to the UH Foundation and, in return, receives fixed, lifetime income payments for one or two designated individuals. In addition to lifetime income, a CGA will generate an income tax deduction, partly tax-free annuity payments, and avoidance of capital gains tax, if applicable.
Who:		A CGA is excellent for donors who want a high, safe income stream that will last for the rest of their life, and for donors who have a significant tax liability in the current tax year. The minimum amount for establishing a CGA with the UH Foundation is $4,000.
The payment rates are based solely upon the age of the donor or donors. For example, the rate for a 70-year-old is 6.5%, for an 80-year-old is 8.0%, and for a 90-year-old is 11.3%. As one can see, the older the donor the higher the charitable gift annuity rate. Click here to view an example of a Charitable Gift Annuity.
Charitable Remainder Trust (CRT)
What:		A CRT is a planned gift where a donor irrevocably transfers cash or property into a special type of tax-exempt trust. Donors will receive fixed or variable income for life, and a substantial income tax deduction. Because a CRT is exempt from income taxes, it can actually sell property tax-free.
Who:		A CRT is an excellent solution for charitably inclined donors who desire to sell an appreciated asset but do not want to pay capital gains tax. By transferring the property into a CRT, the trust may sell the contributed property and purchase new property without the payment of any capital gains tax. A CRT is also ideal for donors who desire additional retirement income and for donors who have a significant tax liability in the current tax year.
When the trust terminates, any remaining assets in the trust will pass to the UH Foundation for purposes designated by the donors. Click here to view an example of a Charitable Remainder Trust.
Life Estate Reserved
What:		A life estate gift occurs when a donor irrevocably transfers a home, vacation home or farm to the UH Foundation while reserving the right to live in the property for his or her life. Although retaining the right to live in the property for many more years, a donor nonetheless is rewarded immediately with a generous charitable income tax deduction.
Who:		A life estate is an excellent choice for donors who intend to leave a personal residence or farm to the UH Foundation upon their death, and for donors who want to lower their income tax liability in the current tax year.
Click here to view an example of a Life Estate Reserved.
Beneficiary Designations
What:		An excellent way to make a planned gift is to name the UH Foundation as a beneficiary of certain types of "beneficiary designation" assets. For example, a donor may name the UH Foundation as a 20% beneficiary of her life insurance policy or IRA. By doing so, a donor quickly and easily creates a planned gift that will avoid probate, fulfill philanthropic goals, and potentially save significant income and estate tax.
Who:		Many people own life insurance policies and qualified retirement plans, such as 401(k) plans, 403(b) plans and IRAs. In fact, these assets in most cases represent a significant portion of a person’s estate. Accordingly, prudent estate planning requires giving careful thought to the eventual distribution of these valuable assets.
Click here to view an example of a Beneficiary Designation.
Charitable Lead Trust (CLT)
What:		A CLT is a planned gift in which a donor irrevocably transfers cash or property into a special type of trust for a set time period. During that period, the trust makes charitable distributions to the UH Foundation for purposes designated by the donor. Once the trust fulfills its charitable distributions, all of the trust assets plus any growth are returned to the donor and his/her family.
Who:		A CLT is an excellent option for donors with large taxable estates. With proper planning, it is entirely possible and perfectly legal for a donor to transfer $1 million, $5 million, $10 million or even $100 million to his/her family with little or no gift and estate tax.
The duration of the CLT will depend greatly on a donor’s goals and objectives. For example, CLTs usually last anywhere between 5 and 25 years. The longer the trust the more significant the gift and estate tax savings, and the greater the benefits to the University of Hawai`i and future generations. Click here to view an example of a Charitable Lead Trust.

A small portion of all gifts to the University of Hawaiʻi Foundation is used to defray the cost of administering and raising private funds for the University of Hawaiʻi.