Planned Gifts & Bequests

A planned gift is an investment you make today that provides significant benefits to you and future support to our lifesaving work—sometimes much more than you might otherwise have thought possible.

Outlined below are just a few of the planned giving vehicles that you can use to supoprt the Berrie Center. Please contact Jamie Gutter at 917-484-0090 or Jamie.Gutter@columbia.edu to learn more.

Bequests and Wills

Remembering the Naomi Berrie Diabetes Center in Your Estate Plans

A bequest is a gift through your will or living trust that costs you nothing now but provides support to the Berrie Center after your lifetime. Bequests offer flexibility and can be structured to fit your personal situation. The gift is revocable, so you can change your mind at any time should your circumstances change.

You can make a bequest of cash, marketable securities, real estate, or personal property such as art or jewelry. In many cases, a bequest can reduce the taxes that would be levied against your estate, in the same way that donations during your lifetime entitle you to charitable income tax deductions.

Although legal consultation is advisable before you establish any type of will provision, know that a bequest could simply be stated as follows:

"I bequeath to THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK, ____percent of my total estate (or $_____, or other property) to provide support to the Naomi Berrie Diabetes Center."
 
 

Three Types of Bequests


Outright Bequests
An unrestricted or outright bequest assures that your gift will be directed by the Center’s leadership to meet our most pressing needs. You may also designate your gift for a special purpose or program within the scope of the Center’s mission. You can restrict the use of principal, income, or both. 


Residuary Bequests
Residuary bequests help you to balance the needs of your heirs with your desire to provide for the future of the Center. Through such a gift, a fixed amount or a percentage of your estate is reserved to provide for your heirs first. Any remainder or residue, or a percentage thereof, is then passed on to the Center. 


Contingent Bequests
A contingent bequest results in a gift to the Berrie Center only under the circumstances you describe, such as the death of your primary heirs. By naming the Center as a contingent beneficiary, you can determine the disposition of your estate despite changing circumstances. 

Please contact us to learn more about variations of how you may direct your support, such as designating your gift for a special purpose or program within the scope of the Center’s mission. 

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu

Life Insurance

A life insurance policy may provide a way for you to make a much larger contribution to support diabetes research and patient care than you ever thought possible. As your life evolves, so may your need for life insurance. You may now be in a position to:

  • Name the Berrie Center as the recipient of all or part of the proceeds of a life insurance policy that is no longer needed for family protection.
  • Contribute a paid-up policy during your lifetime, resulting in a charitable deduction for an amount approximately equal to your policy’s cash surrender value.
  • Depending on state law, purchase a new life insurance policy in which you name the Berrie Center as owner and beneficiary or co-beneficiary.

Next Steps:

  1. Contact your life insurance company to request a change-of-beneficiary form.
  2. Name 'THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK c/o NAOMI BERRIE DIABETES CENTER' as a beneficiary of all or a percentage of the policy’s value.
  3. Return the updated form to your insurance company.
  4. Contact us for information or assistance. Notifying us of a gift intention allows us to thank you and make sure we have a clear understanding of your plans. Your notification will be treated confidentially, if you so desire.

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu

Savings Account/Certificate of Deposit

A savings account or certificate of deposit can provide immediate support to the Berie Center after your lifetime, if you name the Center as joint owner with rights of survivorship. Consider the advantages of this approach:

  • Avoids delays or unnecessary expenses.
  • Allows you to maintain control of the assets throughout your lifetime. If your circumstances change, you may revoke the gift, withdraw the assets, or close the account.
  • The gift amount is deductible from your taxable estate.

Next Steps:

  1. Contact your financial institution for the forms needed to change the ownership of your account or certificate of deposit.
  2. Name 'THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK c/o NAOMI BERRIE DIABETES CENTER' as a beneficiary of all or a percentage of the account’s value.
  3. Return the updated form to your financial institution.
  4. Contact us for information or assistance. Notifying us of a gift intention allows us to thank you and make sure we have a clear understanding of your plans. Your notification will be treated confidentially, if you so desire.

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu

Retirement Account

Gifts from your retirement account assets are among the most tax-smart gifts you can make to the Berrie Center.

Although IRAs and 401(k) accounts are excellent vehicles for accumulating assets for your use during retirement, they are far less effective for transferring wealth to your loved ones. Those who inherit your retirement plan assets could see nearly 60 percent of the value depleted by federal and state income and estate taxes. The only exceptions are distributions from a Roth IRA, which are usually tax-free, and distributions on nondeductible contributions made to a conventional IRA.

If you choose to contribute all or part of these assets to the Berrie Center, however, our status as a nonprofit organization means that we can use 100 percent of your gift to support our critical work.


Next Steps:

  1. Contact the administrator of your IRA or retirement plan to request a change-of-beneficiary form.
  2. Name 'THE TRUSTEES OF COLUMBIA UNIVERSITY IN THE CITY OF NEW YORK c/o NAOMI BERRIE DIABETES CENTER' as a beneficiary of all or a percentage of the plan’s value.
  3. Return the updated form to the plan administrator.
  4. Contact us for information or assistance. Notifying us of a gift intention allows us to thank you and make sure we have a clear understanding of your plans. Your notification will be treated confidentially, if you so desire.

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu

Letter Explaining the IRA Charitable Rollover Gift

Charitable Gift Annuity

A charitable gift annuity is a simple contract between you and Columbia University, the parent organization of the Naomi Berrie Diabetes Center.

You make a gift of cash or securities and Columbia, in turn, provides you (and a second individual if you like) with fixed payments each year for life. After your lifetime, the remaining balance is used to support the Berrie Center's diabetes research and care initiatives. With this type of gift you can:

  • Receive fixed, dependable payments for life.
  • Receive a federal income tax charitable deduction for a portion of your gift’s value, depending on your tax situation.
  • Provide long-term support for cancer research and care.

 

Gift Annuity Payout Rates
Your payout rate is based on your age and the number of people receiving payments. This rate is determined when you create the gift annuity and, because it is not tied to the stock market or interest rates, it will never change. Like most charitable organizations, Columbia uses rates set by the American Council on Gift Annuities. These rates are based solely on the age of the income beneficiary or beneficiaries at the time of the gift.

Sample Rates

ONE BENEFICIARY

TWO BENEFICIARIES

AGE
ANNUITY RATE
AGE
ANNUITY RATE

60

4.4 %

60-62

3.9 %

65

4.7%

66-68

4.3 %

70

5.1%

72-74

4.7 %

75

5.8%

76-77

5.1 %

80

6.8%

83-84

6.0 %

85

7.8%

85-87

7.0 %


For example, in return for a transfer of $50,000, a 65-year-old will receive an annuity of $2,350 each year for life ($50,000 x 4.7% percent). This amount will never change.

Frequently Asked Questions

Is this income guaranteed?

Yes. Payments to you are a general obligation of Columbia and backed by the University’s endowment.

Is there a minimum gift amount?

The minimum contribution to establish a gift annuity at Columbia is $25,000.

What assets can I use to fund a charitable gift annuity?

Most people use cash or appreciated securities to fund a gift annuity.

How will I receive my income?

Columbia usually pays its beneficiaries on a quarterly basis and deposits income directly into a bank account.

How will my income be taxed?

Annuity payments are treated as a combination of ordinary, capital gain, and tax-free income. The details depend on your age and what you use to fund the charitable gift annuity. Our Gift Planning officers will be happy to discuss specific examples with you.

If you use cash, a large portion of your income will be subject to no income tax at all for a fixed number of years, depending on your age. The balance will be taxed at ordinary income rates. If you use appreciated securities, a part of the tax-free portion of the payment is replaced by income taxed at capital gains rates. Each year, you will receive a Form 1099 that tells you how to report the income on your tax return.

Will I receive a current income tax deduction when I create a charitable gift annuity?

Yes. The exact amount depends on a number of factors, including your age, the annuity rate, and the applicable monthly IRS discount rate.

Will I have to pay capital gains taxes if I use appreciated securities to fund an annuity?

No. You will not have to pay tax on capital gain, but some of the annuity payment will be taxed at capital gains tax rates. Choosing appreciated securities as your funding assets allows you to spread out your capital gains tax liability over your life expectancy while converting a highly appreciated, low-yielding asset into an attractive fixed-income stream (The rules are slightly different if you create a gift annuity for another person.)

Are gift annuities good for everybody?

Not necessarily. If you are younger than 65, inflation may erode the value of fixed income payments over time. While fixed income is guaranteed to the beneficiary or beneficiaries for the rest of your life, younger donors should balance fixed income with investments that can grow.

I am under 65. Are there charitable gift annuities that are right for me?

Yes. A deferred gift annuity might be particularly interesting to you. If you agree to postpone receipt of your income, you will receive an even higher rate of income. The deferral of the annuity payment also increases the income tax deduction you can take in the year that the annuity is established.

CURRENT AGE

DEFERRAL

ANNUITY RATE

50*

15 years

7.5 percent

55

10 years

6.4 percent

60

5 years

5.5 percent

*Annuity rate reduced in order to meet the IRS requirement that the charitable deduction is at least 10% of the original gift amount.

Can a deferred gift annuity supplement my retirement income?

Many working people find themselves wanting to set aside more than they are allowed to contribute tax-free to retirement plans such as IRAs and 401(k) plans. When you establish a deferred gift annuity, you create an additional source of guaranteed retirement income.

What will Columbia do with my gift?

While the income beneficiaries are alive, Columbia will invest the gift assets in a pool of investments, which is where the annual payments to beneficiaries will come from. After the beneficiaries die, the remaining assets attributed to the original gift will be removed from the pool and trasferred to the Naomi Berrie Diabetes Center.

 

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu

Charitable Lead Trust

If you have a large estate and are looking for ways to pass more on to your heirs, a Charitable Lead Trust may be an excellent plan for you.

A Charitable Lead Trust is a gift plan that allows you to transfer assets to future generations at a significantly reduced gift or estate tax cost, while providing a stream of income to the Berrie Center through Columbia University for a term of years. The technical name for this type of Charitable Lead Trust is a “Non-Grantor Charitable Lead Annuity Trust” as it leads with a stream of fixed annual payments to the University before the assets revert to non-charitable beneficiaries other than the grantor. 

Example

Assume that you use appreciated property with an average cost basis of 50% to fund a $2 million Charitable Lead Annuity Trust (CLAT) that makes a 6 percent annuity payment to Columbia for 15 years, after which the trust principal reverts to your grandchildren in a generation skipping transfer. Assume also that your gross estate is currently $10 million, you have made no previous taxable transfers, you are in the 35 percent federal income tax bracket, and the state income tax for trusts is 2.5 percent. Assume further that your average total investment return is 8.0 percent over the 15 year term. A 5.0 percent IRS Discount Rate is used to calculate the value of the remainder interest to your heirs.

6 Percent CLAT

Without Trust

Gross principal

$2,000,000

$2,000,000

Net principal placed in plan

$2,000,000

$2,000,000

Benefit to family

$2,358,758

$3,093,554

Benefit to Columbia

$1,800,000

0

Total taxes

$143,822

$2,152,698

The main advantage of a Charitable Lead Annuity Trust (CLAT) is that the term and payout rate of the trust can be adjusted to reduce or even “zero out” the gift tax you owe on the asset transfer to your heirs. In other words, you can make a large asset transfer to your heirs tax-free, while also benefiting the Berrie Center. In addition, any appreciation of the trust goes tax-free to your heirs.

 

For more information 
Contact: Jamie Gutter 
Phone: 917-484-0090
Email: Jamie.Gutter@columbia.edu