Deferred Gift Instruments

IMG 9082Rose-Hulman uses the following gift instruments, but is not limited to, regarding deferred gifts:

Charitable Gift Annuity is described generally as a transaction in which an individual transfers cash or property to a charitable organization in exchange for the organization’s promise to make fixed annuity payments to one or two life annuitants. Rose-Hulman uses annuity rates provided by the American Council on Gift Annuities (ACGA).

Charitable Remainder Trusts provide for a specified distribution, at least annually, to one or more beneficiaries, at least one of which is not a charity. The distribution must be paid at least annually for life or for a term of years, with an irrevocable remainder interest to be held for the benefit of, or paid over to, one or more qualified charities. The specified distribution must be either a sum certain, which is not less than five percent and not more than 50 percent of the initial net fair market value of all property placed in trust (a charitable remainder annuity trust), or a fixed percentage, which is not less than five percent and not more than 50 percent, of the net fair market value of the trust assets, valued annually (a charitable remainder unitrust).

Charitable Lead Trusts are designed to provide income payments to at least one qualified charitable organization for a period measured by a fixed term of years, the lives of one or more individuals, or a combination of the two; after which, trust assets are paid to either the grantor or to one or more non-charitable beneficiaries named in the trust instrument.

Life Insurance by definition guarantees a specific sum of money to a designated beneficiary upon the death of the insured. Rose-Hulman may be beneficiary only or owner/beneficiary.

Real Estate is defined as real property and that which is affixed to the property. Other types of real estate contributions include: fee simple, bargain sale, real estate investment trusts, family limited partnerships, LLC interests, remainder interests, easements, residences, farmland, commercial, vacant land, and natural resource interests.

Gift of Remainder Interest with Retained Life Estate is generally described as a transaction in which an individual irrevocably transfers title to a personal residence or farm to a charitable organization with a retained right to the use of the property for a term that is specified in the gift agreement. At the conclusion of the defined term, all rights in the property are transferred to the charitable remainder. This giving option applies only to personal residences or farms.

Pooled Income Fund, also called a Charitable Remainder Pooled Income Fund (PIF) is an investment fund much like a mutual fund. It is made up of transfers by many persons to the fund that receive life income interest in exchange for their transfers, based on the value of the transfer into the fund and based on the income earned by the fund.

Bargain Sale occurs when a donor, who intends to make a charitable contribution, sells property to charity for less than its fair market value. Value of the property must be determined by a qualified independent appraiser.

Intangible Personal Property is property, other than real property, with no intrinsic value; its value lies in the rights conveyed. Examples include cash, insurance, stock, goodwill, patents, publicly-traded stock, closely-held stock, S stock, stock options, mutual funds, bonds (corporate, government, U.S. Savings), intellectual property (patents, copyrights, royalties, trademarks), partnership or LLC interests and natural resources.

Tangible Personal Property is property, other than real property, that has a physical existence and an intrinsic value. Examples are livestock, animals, machinery, equipment, artwork, antiques, automobiles and other vehicles, boats, jewelry, coins, stamps, clothing, food, books and crops.