In addition, if appreciated assets are used to fund a CRT, the donor avoids capital gains tax. Charitable Gift Annuities Gift annuities are contracts between an individual and a charitable organization such as UC Berkeley. Charitable gift annuities offer the option of receiving annuity payments immediately or deferring them until a later date. Real Estate A gift of real estate is often an effective way to make a major gift to a charitable organization such as the University, since the gift entitles the donor to an income tax deduction for the property's full appraised fair market value. Almost any marketable real estate is suitable for a charitable gift, including personal residences, farms, commercial buildings, forest land, and shares in a cooperative apartment corporation.
Unencumbered property is preferable and generates the greatest tax benefit.
Life Insurance Paid-up life insurance policies are accepted at their cash surrender value. The University follows generally accepted accounting principles for universities and colleges, which advise against recording the death benefit of an insurance policy given during the donor's lifetime. Many Cal alumni in their 70s and older are discovering that they have accumulated estates and retirement plans far in excess of anything they ever imagined possible. Making a charitable gift of retirement assets is one way to lessen the tax burden associated with such assets and to support the University at the same time. If you would like more detailed information about any of the options listed here, please contact the Office of Planned Giving .