If you are passionate about nursing and want to make a lasting and positive impact on the health of our state, consider making a transformational gift to the UAB School of Nursing. Your gift will help establish new and better ways of providing excellent, compassionate care and educate nurses who will lead this change. Many donors find that with careful planning, they are able to make much larger contributions than they ever thought possible and also fulfill personal financial goals in the process. 

As you explore options for making a legacy gift, you might find there are effective ways to give through appreciated securities, property or other assets you own. Planning your gift can provide you the benefit of an income tax deduction, capital gains tax avoidance, and/or federal estate tax reduction.

For illustrations and more detailed information, please visit the University’s planned giving website, www.uab.edu/plannedgiving

Gifts You Can Make Anytime

Appreciated Securities

  • Can be used to make an outright gift or to fund a life income gift
  • Provides an income tax deduction for the full fair market value of securities held for more than one year; may eliminate capital gains taxes

Real Estate

  • Can be given outright, placed in a trust or given through your will
  • Provides an income tax deduction for the full fair market value of the property
  • Eliminates capital gains taxes on the appreciation; reduces your taxable estate
  • Frees cash that would have been used to pay taxes

Retirement Plan (An IRD Asset)

  • Allows donor to make a substantial gift and significantly reduce tax burden for heirs (subject to double taxation, effectively a rate of 70%, on amount passed to an heir)
  • Owner can take taxable distribution from the plan, and then give remaining proceeds to UAB (distributions subject to ordinary income taxation, but may be offset by charitable tax deduction)
  • Donor may assign UAB School of Nursing as the beneficiary either in full or as a percentage of the total plan; may be handled with a “Change of Beneficiary” form from your insurance company
  • If UAB is the full beneficiary, donor avoids income tax and estate taxes (the charitable deduction offsets any estate tax due)

Gifts You Can Make Today

Charitable Lead Trust (A gift that also provides for your heirs)

  • Enables donor to fund an endowed chair, scholarship, faculty position, building renovation or research project while transferring sizeable assets to heirs with significant tax benefits
  • UAB School of Nursing receives annual payments (either fixed or variable) for a predetermined amount of time after which the remaining assets go to the beneficiary
  • Donor receives charitable tax deduction equal to the present value of payments to UAB based on the time value of money; taxed with net income and capital gain produced within the Trust but can deduct payments made to UAB
  • $1,000,000 minimum is recommended

Gifts That Pay You Income

Charitable Gift Annuity

  • Provides fixed payments for lifetime (for one or two people)
  • Initial gift is partially tax-deductible; payments are partially tax-free
  • Payments are not affected by ups and downs in the economy
  • If funded with appreciated stock, capital gains taxes may be eliminated
  • $10,000 minimum contribution; must be 55 or older; can defer payments

Charitable Remainder Trust

  • Enables donor to make a substantial gift, receive a life income and current tax deduction
  • Donor may receive a fixed dollar amount payment (Annuity Trust) or payments based on a fixed percentage of the January 1 market value (Unitrust)
  • Donor receives immediate charitable tax deduction equal to the present value of the gift as determined by life expectancy tables, and assets in Trust avoid inheritance tax
  • Can be funded with cash, securities, or real estate (recommended minimum funding is $250,000)
  • No age limit, but typically benefits an individual nearing retirement, a retired couple/individual between ages 60 and 75; an individual over age 75; a single person over age 80; and/or someone supporting an elderly parent

Gifts That Make an Impact after Your Lifetime

Will Bequests

  • Donor makes provisions in his/her Will or Trust Agreement to include the UAB School of Nursing (or specific nursing program/focus area of their choice) as a beneficiary
  • The gift can be a specific dollar amount, a specific asset, or a percentage of the estate
  • A charitable tax deduction is applied to the estate in the amount of the bequest
  • Allows donor to direct their estate assets to charitable programs and organizations that are important to them, leaving a legacy of caring
  • Charitable bequests to UAB School of Nursing should be made in the name of the Board of Trustees of The University of Alabama System for UAB for use by the School of Nursing (and/or any specific program therein)
  • The UAB Office of Planned Giving can provide sample language for bequests
  • Please indicate whether or not your bequest may be used to create an endowment

Insurance Annuities (An IRD Asset)

  • Allows donor to relieve heirs of income tax burden (unlike life insurance, the beneficiary is responsible for paying income tax on the growth of this asset while you owned it)
  • Donor may assign the UAB School of Nursing as the beneficiary either in full or as a percentage of the total plan
  • May be handled with a “Change of Beneficiary” form from your insurance company

Life Insurance

  • Donor may assign ownership of a current policy to UAB or may purchase a new policy and name the UAB School of Nursing as beneficiary
  • Allows donor to make a substantial deferred charitable gift at a relatively low cost
  • Especially affordable for young donors; may be handled by contacting your insurance company

Please consult your tax and/or estate planning professional to determine which gift methods are best for you. UAB is a non-profit organization under IRS tax code 501(c)(3).