Planned Gifts to UM Hillel

Make a planned gift to engage and empower generations of future Jewish students at the University of Michigan and to develop Jewish leaders of tomorrow.

Planned gifts are legal and financial commitments undertaken by a donor who wishes to make a future gift to University of Michigan Hillel. There are many different kinds of planned gifts, including bequests, income agreements, annuities, insurance policies, and pooled income funds. Some offer financial and tax advantages to the donor. A prospective donor considering a planned gift should always consult with his/her legal or financial adviser.

Types of Planned Gifts:

• Bequests
• Life Income Gifts
• Charitable Gift Annuities
• Pooled Income Fund
• Charitable Lead Trusts
• Life Insurance
• Endowed Funds

Planned Giving: Bequests
A bequest to University of Michigan Hillel is a way of perpetuating your support for the role Hillel plays in the lives of our Jewish students. It enables a donor to make a significant gift that might otherwise not be possible.

Your will is an important element in your estate plan which enables you to create a lasting partnership with University of Michigan Hillel and help to ensure the future of the Jewish community at the University of Michigan.

A bequest through a will is the most common type of planned gift, largely because it enables the donor to make a substantial gift to University of Michigan Hillel without drawing from the donor's assets during his/her lifetime.

Planned Giving (Life Income Gifts)
A life income gift offers an excellent alternative for the individual who wishes to make a significant gift to the University of Michigan Hillel without sacrificing any income from one's assets. In some cases, a life income gift can actually increase the donor's income while ensuring a future gift to Hillel.

Under a life income gift, a donor transfers ownership of cash, securities, real estate or personal property to the University of Michigan Hillel. The donor retains lifetime income from the asset transferred, receives current income tax savings, and may avoid capital gains if the asset appreciates in value.

Life income gifts include charitable gift annuities, pooled income funds, and charitable trusts.

Planned Giving: Pooled Income Fund
The Pooled Income Fund allows a donor to make a gift to the University of Michigan Hillel and also receive regular income throughout his/her lifetime and the lifetime of another beneficiary.

The gift is invested along with contributions from other donors and each individual receives a pro-rated share of dividends and interest based on the amount of his/her gift. As the fund grows, income may also increase. All income from the Pooled Income Fund is distributed annually.

An initial gift of $5,000 or more is needed to participate in the Hillel Foundation Pooled Income Fund. Additional contributions of $1,000 or more may be made at any time after the initial gift.

The donor receives an immediate charitable deduction for tax purposes. The amount of the deduction is computed from the Internal Revenue Service tax tables, based on the age of the income beneficiary and the annual rate of return of the fund.

It is essential that a prospective donor consult an attorney and/or financial planner for assistance in arranging a gift to the Pooled Income Fund.

Planned Giving: Charitable Gift Annuities
Charitable gift annuities have become increasingly popular with donors who wish to make a significant, long-term gift to Hillel but also wish to receive an annual income. Many individuals have given funds that were previously invested in certificates of deposit to Hillel. These gifts are invested by The Jewish Feration of Metropolitan Detroit for Hillel and an annual return, based upon the entire amount of the gift, is given to the donor for the remainder of his or her life. Many times, the amount paid from the University of Michigan Hillel exceeds the annual return the donor received from previous investment of the funds. A spouse or child may also be designated to receive payments from the annuity upon the death of the donor.

Both deferred and immediate charitable gift annuities (charitable lead trust) are available through the University of Michigan Hillel. While both result in tax savings for the donor and an eventual gift to Hillel, the individual who chooses a deferred annuity receives higher annual payments. However, for some individuals, particularly those over age 70, an immediate payment annuity makes good financial sense. Both plans result in significant tax savings on income, capital gains and estate taxes. Both are also irrevocable.

Charitable Lead Trust
A charitable lead trust is both an income and wealth transfer vehicle, enabling you to transfer income-producing assets to the next generation at a significantly lower tax cost, while meeting your philanthropic objectives.

Charitable Remainder Trust
A charitable remainder trust is a way to create a legacy in your name and receive income from the trust for life or for a term of years.

It is essential that a prospective donor consult an attorney and/or financial planner for assistance in arranging charitable gift annuities.

Planned Giving: Life Insurance
Gifts to the University of Michigan Hillel using life insurance may be made in two ways. The donor may name Hillel as owner and beneficiary of either an existing or new policy. The other way to use life insurance is to simply name Hillel as the beneficiary of the donor's policy. Since Hillel does not own the policy, the gift is considered revocable, or without immediate tax savings. However, this type of gift may be eligible for a federal estate tax charitable deduction at the time of the donor's death.

It is essential that a prospective donor consult an attorney and/or financial planner for assistance in arranging a gift of life insurance.

Endowed Funds
Endowments are funds held in perpetuity. The interest they generate annually is used to support projects designated by the donor. Endowments provide stability and security for University of Michigan Hillel and help to guarantee a steady income for our programs. Endowed funds are created with a minimum contribution of $20,000, which may be made over three years. Endowments also can be created through a bequest or other forms of planned gifts. Most endowed funds are renamed in honor of the donor or someone the donor wishes to recognize.