Blended Gifts
A blended gift is as versatile as it comes—any combination of two or more gifts (most often an immediate gift combined with a future gift) that provide us with powerful support and provide the donor with the combination of benefits that works best for their situation.
A blended gift works like this:
- The donor reviews their assets and their charitable and financial goals.
- The donor decides on the combination of gifts that will best accomplish their goals and make the best use of their available assets.
- The selected gifts help ensure the continuation and success of our educational mission.
Evaluate the fit.
A blended gift may be a particularly good option for those who want to:
- Enjoy seeing a current gift making a difference today while also having the satisfaction of implementing a future gift that is perhaps larger than what they’re able to give right now.
- Tailor gifts to meet specific needs, since each type of asset can have a different impact on taxes as well as on personal planning, goals, and needs.
See how it works.
Example one. Mia consistently supports the UMass Foundation with annual gifts. Now retired, she is pleased that she can make her annual gifts directly from her IRA to us. She pays no tax on the distributions, which count toward her required minimum distribution amount. This year, Mia decides to take her giving one step further and name the UMass Foundation as the beneficiary of her IRA. The funds are still available to her during her lifetime, but at death, whatever remains in the IRA will become a gift to support our mission.
Example two. Connor has enjoyed investment success and owns substantially appreciated stock. Connor donates stock valued at $50,000 to the UMass Foundation. He pays no capital gains tax on the stock’s appreciated value and qualifies for an immediate charitable income tax deduction. Connor wants to make a much larger gift but hesitates because he is uncertain what the future might bring. He chooses to make a second gift to us in his will, leaving us 50% of his estate, with the other 50% going to his grown son.
Consider the timing.
For a blended gift, the choice of assets and gift strategies will typically determine the timing of the gift.
The UMass Foundation can help.
Blended gifts are unique. In fact, they are as unique as each donor is. We are happy to provide more information or have a discussion with you and your client to explore which combination of gifts might provide the greatest benefits.