"Gifts that give back," the Charitable Remainder Trust and the Pooled Income Fund make it possible for the donor to make an irrevocable gift of cash or property while retaining an annual income stream from the trust. Donors are allowed an income tax deduction for federal returns equal to the present value of the remainder interest, an amount calculated by subtracting the present value of the income stream retained from the amount given to fund the trust. In addition, there is no capital gains tax for gifts of long-term appreciated property used to fund the trust.
Charitable Remainder Trust
To make a gift through a Charitable Remainder Trust, a donor transfers cash or property irrevocably to the trust, creating two interests: income interest and remainder interest. The income interest, either a fixed percentage of the trust's value or a fixed dollar amount, is paid annually to the donor, or to income beneficiaries named by the donor, either for life or for a specified term of years. The remainder interest is distributed by the trust to Hampshire on the death of the named income beneficiaries, or at the end of the specified term.
"I think a Charitable Remainder Trust is an excellent way to give to Hampshire because it provides an income to the donor, as well as a tax deduction, and avoids capital gains tax on appreciated assets. Above all, it is good to know that ultimately one's gift will provide the college with a significant endowment."
-Charles Taylor Chair, Board of Trustees
Pooled Income Fund
To make a charitable gift through the Hampshire College Pooled Income Fund, a donor transfers cash or property irrevocably to the fund, creating two interests: income interest and remainder interest. The income interest, a proportionate share of the fund's interest and dividend income, is paid annually to the donor, or to income beneficiaries named by the donor. The remainder interest is distributed by the Pooled Income Fund to Hampshire on the death of the donor or the donor's named beneficiaries.
"Many people think of the Pooled Income Fund as their 'charitable mutual fund' we found it a great way to make a sizeable charitable gift and increase our income."
-Paula & William Roos
Those interested in learning more about the Gift Annuity are advised to speak with their legal/tax advisors and with Institutional Advancement.