Ways To Give

Your planned gift to Duke University Medical Center can take many forms -- from an outright gift of cash or real estate to a bequest. Depending on the type of plan you choose, you may reduce your taxes, increase your income, and protect your heirs while helping Duke to conquer the many diseases that continue to threaten human health.

Outright Gifts: For the Here and Now

• Gifts of Cash
  The simplest method of giving, an outright gift may be declared as a charitable deduction on your federal income tax return for the year you make the gift-up to 50 percent of your adjusted gross income. You may deduct the excess balance over the next five years.
• Gifts of Securities
  You may give stock-both publicly and privately owned-or bonds to DUMC. If you have owned securities for at least one year, you will qualify for a charitable tax deduction equal to the value of the securities on the date they're given. DUMC may then sell the securities and use the funds without having to pay capital gains taxes. Gifts of appreciated securities are deductible up to 30 percent of your adjusted gross income in the year you make the gift. You may deduct any excess balance over the next five years. In some cases, our donors can save substantially more in taxes by giving securities as opposed to cash.
• Gifts of Privately Traded ("Closely Held") Stock require additional planning, but our planned giving staff can explain the benefits and options.
• Gifts of Real Estate
  You may donate land or other property to DUMC -- whether it's a residential or vacation home, a farm, commercial building, residential lots, or unimproved land. Your gift may consist of the entire property or a fraction. DUMC usually offers the property for sale soon after you donate it, and your charitable tax deduction is equal to the fair market value of the property (or your portion of it) at the time you make the gift. You will enjoy the same benefits with gifts of real estate as you would with gifts of appreciated stock.

Planned Gifts: With Your Future in Mind

• Gifts of Real Estate with Retained Life Estate
  You can give your estate and live there, too! Just transfer your ownership of a residence or farm to DUMC, and you may continue to live there for your lifetime. This arrangement can qualify you for a charitable income tax deduction equal to your property's value, minus the value of the retained life estate.
• Life Income Gifts
  So, you want to donate to DUMC to support vital medical research or education, but you need your steady income for life? We offer several plans that combine the best of three worlds-important philanthropy, lifetime income, and major tax benefits.
• Charitable Remainder Trusts
  If you give assets such as appreciated stock or real estate to DUMC now, you can receive income for as long as you live. Upon your death, these assets will revert totally to DUMC, to be used according to your wishes. The income can be paid out for a period of up to 20 years. Help pay for a child's college education, help support an elderly loved one, or -- if you own appreciated, low-yielding, high concentrated stocks-a charitable remainder trust can convert these into a high-yielding, diversified portfolio that can give you a handsome retirement income-without incurring capital gains taxes! We offer three types of charitable remainder trusts.
• Charitable Remainder Unitrust
  • Pays you income based on the market value of your assets each year.
  • Provides an excellent hedge against inflation because if the market value of the trust increases, so will your income.
• Charitable Remainder "Flip Trust"
  • Can convert your non-income generating assets into cash or other liquid assets.
  • Provides you an opportunity to defer income.
• Charitable Remainder Annuity Trust
  • Pays you income based on a fixed percentage of the initial value of the trust and never changes.
  • Provides you with the security of a fixed income despite stock market fluctuations.
• Pooled Income Fund Gifts
  Just as a mutual fund combines investments from many people, a pooled income fund combines gifts from many donors into a common investment pool. DUMC then invests this pool, and the income it generates is distributed to each donor and/or a designated beneficiary. We offer two pooled income funds.
  • The Tower Fund:
    • Seeks to achieve a high income with minimum risk to the principal.
  • The Quadrangle Fund
    • Seeks appreciation in value and increased income; usually yields a higher income tax charitable deduction than a gift to the Tower Fund.
• Charitable Gift Annuity
  This is a simple agreement between you and DUMC, whereby we pay you a lifetime annuity in exchange for a charitable gift. The amount of this annuity depends on market interest rates and the age of the beneficiary. Under certain circumstances, a large portion of the income from the annuity can be tax-free or taxed at lower capital gains rates.
• Charitable Lead Trust
  A charitable lead trust is the reverse of a charitable remainder trust. Assets are transferred to the trust, which then usually pays income to DUMC for a fixed number of years. At the end of the fixed term, the trust assets are transferred to individuals you name, such as children or grandchildren. A lead trust can be a useful tool in charitable gift and family wealth-transfer planning, because it can reduce gift and estate taxes.
• Bequests
  

  Some of DUMC's largest gifts have come to us under the terms of a donor's will. Today's federal estate tax laws favor charitable bequests. Like other gifts, bequests can be given without restriction or designated for specific purposes or special areas of research.

  Specific bequests provide for a specific dollar gift or specific assets to be given to DUMC.

  Residuary bequests provide for a gift to DUMC of the remaining assets of your estate after all specific bequests have been paid.

  • Changing an Existing Will or Living Trust
    If you already have a current will or trust and would like to include a gift to DUMC without rewriting it, your attorney can add an amendment to your living trust or a codicil to your will.
  • Life Income Gifts or Charitable Lead Trusts through Your Will or Living Trust
    You can establish a charitable remainder trust, pooled income fund gift, or charitable gift annuity through your will or living trust. This will not provide you with tax savings in your lifetime, however you may reduce your estate taxes, provide a lifetime trust income to a loved one, or create new estate planning options. You may also reap estate tax savings by creating a lead trust through your will or living trust.
• Retirement Plans
  IRAs, tax-sheltered annuities, Keogh plans, self-employed plans (SEPs), 401(k), 403(b), and other qualified pension/profit-sharing plans can be an ideal gift source for DUMC. Usually, retirement plans are subject to both income and estate taxes at your death-at rates that can be as high as 70 percent! If you arrange to make a gift to DUMC from your retirement plan assets at your death, the result may be significant tax savings for you. We can work with you and your plan administrator to carry out your wishes.

Contact

Joseph W. Tynan
Director of the Office of Gift Planning at DUMC Development and Alumni Affairs
512 S. Mangum St., Suite 400, Durham, NC 27701
Phone: 919-667-2506
Fax: 919-667-1002
tynan002@mc.duke.edu