Planned Giving Basics: Just Getting Started?

How do I benefit from a planned gift?
Planned gifts can yield benefits such as:

Ability to make a significant gift to Harvard in line with your objectives
Income for life
Expert management and investment diversification from Harvard Management Company
Savings on income and capital gains taxes
Savings on gift and estate taxes

What can I give?
Donors frequently think their only option is to make an outright gift of cash to their charity of choice. While this is a positive way to make your charitable gifts, there are a number of other ways for you to donate to charity. Planning your gifts is a way for you to take advantage of the tax, financial, and estate planning benefits of philanthropy.

A planned gift can be made with almost anything: cash, stocks, bonds, mutual funds, real estate-even property such as artwork and royalties. Please contact the University Planned Giving Staff if you have questions about a possible donation.

How do my heirs benefit?
Your heirs can benefit tremendously from a planned gift. For instance, you can design a gift to pay income for life to you and your spouse.

Also, a planned gift can reduce your estate tax liability. The assets that you transfer to Harvard University remain outside of your taxable estate.

What about my children and grandchildren?
You can tailor your planned gift options to benefit your children and grandchildren.

In addition, by involving your family in your gift, you can teach your children and grandchildren about your philanthropic values, and transfer those values to future generations.

How does Harvard benefit from a planned gift?
Your gift can make a significant impact on Harvard now and/or in the future, and you can choose to direct your gift to aid a specific area of the University. One of our planned giving experts can assist you with the designation and legal language for the area(s) that you would like to support.

Can I benefit other charities through a Harvard planned gift?
Absolutely! At Harvard, there are certain planned gifts that provide you with the flexibility to benefit both the University and other causes. If you are interested in these options, please contact a Harvard University gift planner.

What does Harvard Management Company do?
Harvard Management Company manages Harvard's endowment and the life income plans and trusts that are donated to the University. Performance figures and other information are available from Harvard Management Company.

How do I name Harvard in my will and/or living trust?
To name the University, a school, or an affiliate in your will, you can include the following language:

I give (___ dollars/ __ percentage or all of the residue of my estate) to the President and Fellows of Harvard College, a Massachusetts educational, charitable corporation, for the benefit of __________ (name of Harvard School(s) and/or affiliate(s)).

To make a specific bequest, please contact University Planned Giving Staff for further details and language.

How do I name Harvard as a beneficiary in my retirement plan?
Leaving your retirement plan or IRA (or a portion of it) to the University is a tax-wise gift. Naming Harvard University as the recipient of your retirement plan after your lifetime (or at the death of the survivor of you and your spouse) avoids all estate and income taxes on the plan assets.

To make this gift, you can simply notify your plan's administrator of your wish to change the beneficiary. A "change of beneficiary" form will be required. Should you designate that your qualified retirement plan come directly to Harvard at your death, your spouse will need to sign consent to the designation. A consent is not necessary for an IRA unless you reside in a community property state.

If your spouse and children are currently the beneficiaries of your retirement plan, you can continue to keep them as beneficiaries, and also include Harvard as the beneficiary of a portion of the plan. Upon your death, the plan administrator can "cash out" Harvard's share of the account without affecting your family's portion of the account, so that Harvard, and your heirs, benefit from your retirement savings.