*Calculation are based on quarterly payment and an 8.0 percent IRS discount rate. The above figures and annuity rates will vary depending on the date of the gift.

• The deferred gift annuity (DGA) is similar to the immediate payment gift annuity in that both pay a fixed payment for life. However, the DGA allows income tax savings now and provides increased income beginning in later years. You, as the donor, decide when you want the payments to begin. The rate used to calculate the annuity you will receive is determined by the amount of the gift and the date at which payments will begin. Since the fixed payments are postponed, your immediate income tax deduction and your annuity rate will be larger.

Charitable Remainder Trusts

A charitable remainder trust (CRT) allows the donor(s) to make a generous gift to Carnegie Mellon while retaining an income stream for life or the life of a beneficiary. The income stream may continue for the lifetime of a beneficiary(ies), a fixed term of a maximum of 20 years or a combination of the two. Your trust is invested and managed by Carnegie Mellon (as trustee) at no cost to you and you may designate the future use of your gift to a specific school or purpose, such as a scholarship. You may establish a charitable remainder trust with an irrevocable gift to Carnegie Mellon of $100,000 or more.

CRT Tax Savings

• You receive a charitable income tax deduction in the year of the gift for the amount of the gift less the value of your projected lifetime income from the trust.
• If you establish the CRT using appreciated securities, any capital gains tax due on the initial transfer is eliminated.
• You remove the assets you have contributed to establish the CRT from your taxable estate, thus eliminating potential future federal and state estate taxes.

Some of the more common types of CRTs:

• A charitable remainder unitrust is managed individually and can be structured to meet your financial and estate planning goals and objectives. Its primary advantage is that it allows for the possibility of ever-increasing income as assets in the trust increase. Carnegie Mellon alumni have established unitrusts to accomplish different financial and estate-planning objectives. A unitrust can be an effective tool to produce higher income from assets that you already own. Others use them as a retirement planning tool and still others use them to provide an income for a spouse or other family member.

  The unitrust pays a fixed percentage (at least 5 percent and generally between 5 and 7 percent), of the annually re-valued trust assets for life, or for a specified period up to 20 years. You and Carnegie Mellon (as trustee) agree upon the percentage of payout when the trust is created. Once it is created, you may make additional contributions to the unitrust at any time.

  An important advantage of one type of unitrust — the net income unitrust — is that non-income-producing assets can be included in the trust. The trust can then sell these assets and reinvest the proceeds into the trust to produce income. This avoids the capital gains tax that would otherwise be due on a sale.

• Annuity Trust

  The annuity trust pays an annual, fixed-dollar amount for life (or for a specified period up to 20 years), which is agreed upon by the donor and the university (as trustee) at the time it is created. The amount must be at least 5 percent of the market value of the assets at the time the trust is established. Depending on what assets are used to establish the annuity trust, the trust may pay you some tax-free income. Unlike the charitable remainder unitrust, additional contributions may not be made to the annuity trust after it has been created.

Pooled Income Fund

Pooled Income Funds are another way to contribute to Carnegie Mellon and receive an income for life in return. Much like a mutual fund, a pooled income fund combines and invests a donor's gift with gifts from other alumni and friends within a trust that the university has already established. You receive an immediate income tax deduction. The fund pays you a pro rata share of all of the funds' earned dividends and interest. The income you will receive from the fund varies from year to year.

You can also provide income from Carnegie Mellon's Pooled Income Fund to your spouse or another designated individual. Upon the demise of the surviving beneficiary, your share of the pooled income fund is removed from the fund and is distributed to Carnegie Mellon.

Tax Savings

• You receive an immediate charitable income tax deduction, subject to IRS limits, for a portion of your gift to Carnegie Mellon's Pooled Income Fund.
• Should you make a gift using appreciated securities or other property, you can avoid any capital gains that would otherwise be due were you to sell the gifted assets.

The Warner Legacy

Life income gifts provide vital support for Carnegie Mellon. All loyal alumni and friends who provide for the university's future through an irrevocable life income plan are honored with membership in the Warner Legacy. This society honors John Christian Warner, president of Carnegie Institute of Technology from 1950-1965. His leadership and vision are reflected in the leadership and vision of those who provide for the university's future through an irrevocable life income plan. Donors receive a certificate and their names are inscribed on a membership scroll. You may, of course, choose to remain anonymous.