Gift Planning

• Planning Your Legacy
• Goals and Benefits
• Gift Options
• Assets to Give
• Additional Resources

Frequently Asked Questions

1. What assets can I use to make a gift to Notre Dame?
Generally speaking, during your lifetime you can make an outright gift of cash, securities, or other property (e.g., real estate or personal property).

You may also make a gift to Notre Dame through your will or with a distribution from your retirement plan or life insurance policy.

2. What sort of gift options also return income to me?
You can make a gift and guarantee income for you, your spouse, or other beneficiaries with a charitable gift annuity or a charitable remainder unitrust.

3. What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, and whether it is outright or deferred or has any income payments. Here are some general guidelines:

• Outright gifts to Notre Dame generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit!
• Gifts of personal property, like art, books, and collectibles, are fully deductible so long as they are relevant to Notre Dame's mission. We can advise you on this point. Click here for contact information.
• Bequests do not generate a lifetime income tax deduction. However, they are exempt from estate tax.
• Similarly, life insurance distributions to Notre Dame are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 4 below).
• The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.

4. I want to set up a life insurance policy and name Notre Dame as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift" – i.e., as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

5. I’ve heard that transferring gifts of IRA assets to charity are advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75 percent or even higher on large taxable estates. The tax will be paid at some point—by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support Notre Dame!

6. I'd like to donate a painting. Will you determine its value for my income tax deduction?
The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too – an insurance appraisal won't suffice. We can assist you on this point.

7. I'm interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse?
Your charitable gift annuity will be treated as a general obligation of Notre Dame, backed by the full assets of the institution. The University has an unbroken record of making timely payments to our annuitants, and that ongoing responsibility is a key element of its financial policies.

8. If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts and we greatly appreciate and encourage annual support from all of our alumni, friends, and benefactors.

Questions? Please contact:

Office of Gift Planning
1100 Grace Hall
Notre Dame, IN 46556-5612
Phone: (574) 631-2661
Fax: (574) 631-6957
jjessup@nd.edu