Giving to M-NIMBS
Gifts from private sources are critical to assuring our leadership position in nanobiology research and to expanding our mission to educate the next generation of multidisciplinary scientists.
University policies and the restrictions inherent to government grants and contracts prohibit us from using our major financial resources for certain activities, leaving us with limited or no funding in key areas. Among these are scholarships, fellowships, graduate student research assistantships, recruitment and retention of extraordinary junior faculty, innovative research projects, modest capital equipment purchases, and lab upgrades.
Philanthropy from individuals, foundations and corporations plays an important role in the research M-NIMBS conducts and in the lives of students involved with M-NIMBS.
You, your tax advisor, or attorney may wish to consider U-M's existing planned giving opportunities as you formulate your financial and estate plans. Using one or more of these techniques allows you as a benefactor to meet your personal financial objectives as well as your philanthropic goals, maximizing tax benefits and providing for lifetime needs while establishing meaningful gifts to charitable causes about which you care deeply.
You may also establish a fund designed to meet goals and purposes unique to you. Should this be your objective, we would be delighted to explore alternative planned giving options with you. Please contact the Development Officer, Clara A. Verweij, MA, MBA, at cverweij@umich.edu, or 734-763-0633.
Bequest or Beneficiary Designation
A bequest is a method of making a charitable gift from your estate by naming the University as a beneficiary in a will. You may also name the University as beneficiary on beneficiary designation forms of certain accounts such as IRAs and annuities. Our preferred bequest language can be incorporated into a will or living trust to designate the University of Michigan as a legatee of your estate. Our preferred beneficiary designation language can likewise be incorporated on beneficiary designation forms for IRAs, annuities, and similar accounts. The suggested wording can be adapted to meet your desired gift intention, i.e., a bequest or beneficiary designation for a particular program at the Michigan Nanotechnology Institute for Medicine and Biological Sciences.
Charitable Remainder Unitrust
A bequest is a method of making a charitable gift from your estate by naming the University as a beneficiary in a will. You may also name the University as beneficiary on beneficiary designation forms of certain accounts such as IRAs and annuities. Our preferred bequest language can be incorporated into a will or living trust to designate the University of Michigan as a legatee of your estate. Our preferred beneficiary designation language can likewise be incorporated on beneficiary designation forms for IRAs, annuities, and similar accounts. The suggested wording can be adapted to meet your desired gift intention, i.e., a bequest or beneficiary designation for a particular program at the Michigan Nanotechnology Institute for Medicine and Biological Sciences.
Back to topCharitable Remainder Annuity Trust
A charitable remainder annuity is a way to make an irrevocable gift to the University of Michigan, receive some immediate tax benefits, and still receive annual income distributions from the assets during your lifetime(s). Upon the death of the last beneficiary, the trust principal becomes the University's and will be used according to your specified instructions. A charitable remainder annuity trust is most attractive to people who want a fixed distribution. Each year the trust will distribute the payout amount determined at the time the trust is established. This amount is paid every year for the life of the beneficiary(ies), regardless of whether the trust grows or declines in value, as long as the trust is solvent.
Charitable Gift Annuities
Michigan alums may now take advantage of this very popular charitable giving opportunity that provides a fixed income for life. Charitable gift annuities have been in existence for more than 100 years and are one of the most simple life income plans available. An ever-increasing number of non-profits are offering annuities because they are so easy to understand and to establish.
Charitable Lead Trust
A charitable lead trust is a vehicle for transferring substantial assets to your children or others while minimizing transfer taxes. By permitting the income from those assets to go to charitable institutions like the University of Michigan for a period of time, gift and estate taxes may be greatly reduced. The annual distributions are available to the charity immediately. At the end of the trust period, the remaining principal is distributed as you directed to your chosen beneficiary(ies), usually your children or grandchildren.
Back to topDonor Pooled Income Fund
The Donor Pooled Income Fund provides a way for you to 1) make an irrevocable gift to the University, 2) receive the tax benefits of a charitable gift, and 3) realize a modest return on those assets for the rest of your life, and/or the lives of other beneficiaries. Income from the Donor Pooled Income Fund is treated as ordinary income and is based on the number of units of participation you own. The Fund is valued quarterly and you receive income in four quarterly distributions each year. Following the deaths of all income beneficiaries, the number of units owned will be severed from the Fund and the value of those units will be distributed to the Michigan Nanotechnology Institute for Medicine and Biological Sciences according to the purpose you designated at the time of the gift.
Gift of IRA or other Retirement Assets
For many people, money accumulated through the years in retirement plans represents a significant percentage of their total assets. Even with the minimum distribution rules for mandatory withdrawal, many of these plans will still have large balances at the death of the owners.
People are often very surprised to discover that assets they thought would simply pass to heirs from their qualified retirement accounts are the most heavily taxed assets in their estate. A combination of estate taxes, income taxes, and generation-skipping transfer taxes can consume nearly 80 percent of a retirement plan account. There are ways to avoid, or significantly reduce, these taxes.
If you are interested in supporting Michigan through a bequest, a qualified retirement plan or IRA may be the best asset to designate to the University. If you make the University the beneficiary of your retirement plan, you would eliminate the income tax, generation-skipping transfer tax, and the estate tax on the funds in the plan. The University would receive 100 percent of the retirement assets. By contrast, if you left these same assets directly to heirs, they may receive as little as 20 percent. Even with the 1997 repeal of the 15-percent excise tax on retirement accounts, they remain the most heavily taxed asset in your estate.
If you wish to benefit your heirs before transferring your assets to charity, you may designate a testamentary charitable remainder trust as beneficiary of your IRA or other qualified retirement plan. Upon your death, the plan balance will be distributed to a charitable remainder trust, which will pay income to your heirs for their lifetimes, or for a period of years. Upon their deaths, or when the trust term is completed, the remaining trust principal will be transferred to the University. With this strategy some income tax is avoided, the estate tax is reduced, heirs may enjoy a greater percentage of the proceeds, and you have provided a substantial gift to the University.
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