Giving Options

Gifts by will are an important source of individual support for the University. Bequests provide scholarships and professorships and can fund capital projects. A bequest can be made in the form of a specific gift of cash or property, or a percentage of the remainder of an estate. The latter allows more flexibility in planning.  The following language can help when planning a gift in your will. 

Making a Gift that is Unrestricted

(a gift that can be used where need or opportunity is greatest)

I give to The Trustees of the University of Pennsylvania, a non-profit 501(c)(3) corporation, located in Philadelphia, Pennsylvania, organized and existing under the laws of the Commonwealth of Pennsylvania, the sum of $_______ [or ______% of the rest, residue, and remainder of my estate] to be used for its general purpose. 

A Gift for a Specific Purpose 

A charitable bequest can also be designated for a specific purpose. It is best to have both the designation and the language approved by the University to avoid potential difficulties in the execution of the will, and to ensure the University meets your gift intention. 

I give to The Trustees of the University of Pennsylvania, a non-profit 501(c)(3) corporation, located in Philadelphia, Pennsylvania, organized and existing under the laws of the Commonwealth of Pennsylvania, the sum of $_______ [or ______% of the rest, residue, and remainder of my estate] to be used for [state purpose]. 

• Legal Name:  Trustees of the University of Pennsylvania 
• Tax ID number:  23-1352685 

The simplest of life income gift arrangements, the Charitable Gift Annuity, is a contract between the University and a donor, providing for payments to one or two beneficiaries at a fixed rate. In exchange for a gift of $10,000 or more, Penn will provide an attractive annuity rate and guaranteed payments for life. A donor may contribute cash or appreciated assets, such as real estate or securities to establish a gift annuity and is eligible for a charitable income tax deduction in the year the gift is made. A Charitable Gift Annuity also allows for potential tax advantages, such as a reduction in estate and capital gains taxes. On termination of the annuity, the balance supports Penn. 

Penn’s Deferred Charitable Gift Annuity is a contract between the University and a donor, providing for the payment of a fixed income to one or two annuitants. These payments are determined to begin at a future date chosen by the donor. A longer delay between the creation of the deferred gift annuity and the start of payments result in a higher annuity rate and a larger income tax charitable deduction. Some donors view this as an attractive supplement to retirement planning. Additional flexibility may be created by the donor specifying a range of start dates, one of which may be “triggered” by the donor in the future. On termination of the annuity, the balance supports Penn. 

The Penn Impact Annuity is a way to plan a gift that has immediate impact. Like a Charitable Gift Annuity, this unique giving vehicle provides guaranteed payments to you or a loved one. In exchange for a gift of $25,000 or more, the University will provide guaranteed lifetime annuity payments at an attractive rate. A donor has the option of designating one of the University’s priorities to receive the first three years of payments. Thereafter, the donor benefits from the advantage of the annuity payments. The Penn Impact Annuity also allows for a greater immediate charitable income tax deduction, given that the first three years of gift payments are included in the current charitable deduction. On termination of the annuity, the balance again supports Penn. 

The Penn Donor Advised Fund is a way to support the University and other charities in an efficient and satisfying way. The Penn Donor Advised Fund provides a convenient way to make a gift now, and “lock-in” a charitable tax deduction the year the gift is made, while delaying the decision of where to designate support until a later date.  

A Penn DAF can be established with a gift of $50,000 or more. At least 50% of the gift must be designated over time to University programs, with the remaining balance available to other charitable organizations.  Additional contributions of $10,000 or more can be made at any time. In return a donor is eligible for a tax deduction for the full value in the year the gift is made, subject to IRS guidelines. At least 5% of the DAF must be distributed annually. Unlimited grant recommendations can be made each quarter with a minimum distribution amount of $500 per grant. Upon termination of the Donor Advised Fund, the donor has the option to appoint family members to continue the fund for one additional generation.

Access the Donor Advised Fund Grant Distribution Form (PDF opens in new tab)

Individuals may make a Qualified Charitable Distribution (QCD) from their IRA directly to the University beginning at age 70½. The amount of the QCD is excluded from a donor’s Adjusted Gross Income (AGI), and thus not subject to income tax; donors do not receive and income tax charitable deduction for the gift. Donors aged 72 and older may use QCDs to satisfy some or all of their Required Minimum Distributions (RMDs) up to $100,000 annually.

The sample letter can be used to send to your IRA plan provider. 

A Charitable Remainder Trust allows a donor to transfer assets into a separately managed trust that will provide beneficiaries named by the donor with payments for life or for a period of years. The donor decides the payout rate of the trust in consultation with the trustee he or she selects. The minimum payout is 5%. The trustee has the responsibility to manage the assets of the trust, provide tax statements to the IRS and the beneficiaries, and issue beneficiary payments on a periodic basis. The University currently serves as trustee of many charitable trusts and provides these services to donors and beneficiaries of those trusts. There are two types of Charitable Remainder Trusts: 

Charitable Remainder Unitrust 

This trust pays the donor or other named beneficiaries a fixed percentage of the principal in the trust as it is valued annually. Unitrust payments are taxed to the donor based upon the type of income earned by the trust. Additional gifts can be made to a unitrust at any time. 

Charitable Remainder Annuity Trust 

This trust makes annual payments fixed at a specific percentage of the value of the trust when it is established. Additions to an annuity trust are not permitted. 

The Charitable Lead Trust can be an attractive vehicle when the goal is to make a generous gift to the University and achieve certain income or estate tax planning objectives. An advantage of the Charitable Lead Trust is that the gift is made up front, providing an opportunity for the donor to experience the immediate impact of their support. A Charitable Lead Trust holds income-producing assets for a term of years, or for the lifetime of an individual, during which time annual payments are designated to Penn—either a fixed annuity payment, or a “unitrust” payment that varies annually based on the trust’s performance. At the end of the term, the trust assets are paid back to the donor, or to the donor’s children or grandchildren.