Office of Institutional Advancement

Planned Giving

The following describes policies on permanent endowed funds to the University.

Charitable bequests. Donors can make charitable bequests to the University in wills or living trusts.

Charitable gift annuities. A charitable gift annuity is a contract between Virginia Union University and the donor, not a trust agreement, whereby the donor makes an initial payment of cash or marketable securities to VUU and VUU agrees to pay the donor an annuity for the rest of his/her lifetime.

Charitable remainder trusts. A charitable remainder trust is established when a donor irrevocably transfers money or securities to a trustee who invests the assets to pay annual lifetime income to the donor or others chosen by the donor. At the end of the beneficiaries’ lives, the remaining trust assets are distributed to the University. Annuity trusts provide the tax advantages of current contributions with the security of fixed, lifetime incomes, generally for the donors and their spouses. The agreed-upon annual payments remain unchanged regardless of how the investments perform. The Unitrust differs from the annuity trusts by providing a variable income. Payment is based on a fixed percentage of the net fair market value of the trusts assets as valued annually.

Charitable lead trusts. This type of gift provides an income stream for a specified period of time to Virginia Union University. The University receives the income from the trust and applies it to the specific project. The principal is then returned at the end of the set period to whomever the donor designates.

Gifts of life insurance. Gifts of life insurance may name Virginia Union University beneficiary of the policy or as beneficiary and owner.

Pooled income fund. This type of giving is sometimes called a charitable mutual fund, as it allows the donor to combine gifts with those from other individuals to participate in life income trusts with smaller initial gifts. The annual income is based upon the donor’s investment in the fund and varies with the actual earnings of the fund.

Life estate. Donors can receivable a sizable charitable income tax deduction by making a gift to Virginia Union University of their personal residence while retaining full used and rights to the property during their lifetime.

Revocable trust. Through a written agreement, the donor transfers assets to a trustee. Income is paid to the donor for the term of the trust.

Irrevocable planned gifts will be reported at their full fair market value. Revocable planned gifts will be counted at full fair market value toward the campaign goals if donor will be 50 years of age or older by June 30, 2007. If the donor will be less than 50 years of age by June 30, 2007, the revocable gift will be discounted 100 percent.

For more information contact Dr. Letizia Gambrell-Boone