Frequently Asked Questions

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

Through your will or living trust or with a distribution from a retirement plan or life insurance policy, your gift can be designated to Berkeley in accordance with your wishes.

2. What sort of gift plans also return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals, by using a charitable gift annuity, or charitable remainder unitrust or annuity trust.

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, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:

  • Outright gifts of cash to University of California, Berkeley 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 at fair market value so long as they are relevant to our mission. We can provide more information to you on this point. Click here for contact information.
  • Bequests do not generate a lifetime income tax deduction, but can generate an estate tax deduction.
  • Similarly, life insurance distributions to the University are not income-tax deductible, but can generate an estate tax deduction. 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. Contact us for more information.

4. I want to set up a life insurance policy, name University of California, Berkeley 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" – unless you make Cal the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.

5. I've heard that transferring IRA assets to charity is 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% 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 the University of California, Berkeley!

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 University of California, Berkeley, backed by all of our assets. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our 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, current campus activities and needs are supported through annual gifts and we greatly appreciate and encourage any ongoing support you may want to consider.

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