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Income-Producing Gift Plans
Unitrust
The unitrust is an income-producing gift plan that is market sensitive. Your income from the trust varies annually and is based on a yearly determination of the value of the assets you placed in the trust.
Annuity Trusts
The annuity trust provides an income that does not fluctuate with the market. You receive an annual fixed percentage of the initial value of the assets placed in the trust.
Charitable Remainder Trusts
A trust is a legal agreement that specifies how the assets placed under the trust will be managed. The charitable remainder trust is an attractive method to achieve a variety of goals. The two types of charitable remainder trusts-the unitrust and the annuity trust-are often used by Penn State Altoona benefactors to attain their personal financial objectives while making a significant gift to the University. The type of remainder trust best suited to you depends on your individual needs.
Pooled Income Fund
The pooled income fund is somewhat similar to a mutual fund investment because your gift to Penn State Altoona is "pooled" with others in the fund. You have access to professional management of your money without cost to you and are able to diversify your investments. The investment philosophy is to obtain a competitive yield with moderate growth and relative stability of the annual income return. You may choose to receive the lifetime income from your share of the fund or may select up to two other individuals as beneficiaries. The income is paid quarterly. After the death of the last life income beneficiary, the remainder of your gift becomes available to Penn State to use for the program, college, or campus you designate. Your current income tax deduction is for the remainder value of the gift.
Gift Annuity
The charitable gift annuity is among the easiest and most popular methods of making a planned charitable gift. Here is how it works: you make a gift of cash or readily marketable securities to Penn State Altoona. The minimum gift is $10,000 for each annuity you establish. The University formally promises to pay you a fixed percentage of the value of your gift for the lives of up to two individuals. The income is paid quarterly and begins immediately. You also receive an immediate income tax deduction, based on the remainder value of your gift. An additional advantage is that part of the annual income you receive will be tax-free return of principal.
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