Noncash Assets
The Office of Gift Planning at Rice University is ready to help you consider and create a philanthropic strategy that is tailored to meet your family's charitable, financial and tax planning objectives while ensuring your legacy at Rice University, which includes accepting gifts of noncash assets such as:
- Gifts of Appreciated Securities (Stocks and Bonds)
- Gifts of Real Estate
- Gifts of Valuable Personal Property
- Gifts of Mineral Interests
- Deferred Gifts of Retirement Assets
- Gifts of Cryptocurrency
- Gifts of Life Insurance
To learn more about how you can make your mark on Rice with a gift of a noncash asset, please contact us at giftplan@rice.edu or (713) 348-4624.
Gifts of Appreciated Securities (Stocks and Bonds)
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Rice University. Appreciated securities also can be used to fund charitable gift annuities and charitable remainder unitrusts that offer similar benefits as outright gifts but have the added benefit of providing income payments for life to you or others.
Benefits of gifts of stocks and bonds
- Avoid paying capital gains tax on the sale of appreciated stock.
- Receive a charitable income tax deduction.
- Further our mission today.
How to make a gift of stocks and bonds
- By electronic transfer — Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to Rice University.
- By certified mail — If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.
More on gifts of stocks and bonds
There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date we receive the gift. Mutual fund shares are valued using the closing price for the fund on the date we receive the gift. Mutual fund shares are valued using the closing price for the fund on the date we receive the gift.
If you have any questions about gifts of stocks and bonds, please contact us. We would be happy to assist you and answer any questions that you have.
Gifts of Real Estate
Donating appreciated real estate, such as a home, vacation property, undeveloped land, farmland, ranch or commercial property can make a great gift to Rice University.
Benefits of gifts of real estate:
- Receive a charitable income tax deduction based on a qualified appraisal of the gift.
- Avoid paying some or all of the tax on the capital gains appreciation of the real estate.
- Eliminate the hassles of preparation and selling the property.
- Choose from many vehicles for making your gift of real estate that work best for your current and future goals and needs.
How to make a gift of real estate
Making a gift of real estate to support your favorite Rice mission can be done in a variety of ways:
- Outright gift of real estate — You sign a deed of gift transferring full or a fractional interest in the property to Rice. You receive a full tax deduction for the fair market value, as established by a qualified appraisal.
- Charitable remainder “flip” unitrust — You establish a trust with Rice Trust, Inc. as trustee, deed the real estate to the trust, and when the trust sells the real estate, you receive income payments. You also receive a partial charitable income tax deduction and management of capital gains taxes when you deed the gift of real estate into the unitrust.
- Bargain sale — You agree to sell Rice your property below its fair market value, and the gap between that value and the price Rice pays serves as the gift. You also receive an agreed-upon amount from the proceeds in return once Rice sells the property.
- Gift of Real Estate with a Retained Life Estate — You transfer the property to Rice through a deed of gift and also sign an agreement with Rice to retain the right and certain responsibilities to continue to live in your property for your lifetime.
- Estate Plan Gift — You name Rice as the beneficiary of your will or trust with a gift of real estate in your estate plan.
Gifts of real estate are guided by Rice Gift Acceptance Policies and Procedures and involve a process before final acceptance occurs.
If you have any questions about gifts of real estate, please contact Judi Tichenor in the Office of Gift Planning at jtichenor@rice.edu or (713) 348-4807.
Gifts of Valuable Personal Property
Making a gift of valuable personal property is another noncash way you can support the work of Rice. Perhaps you have valuable items that you no longer need or use and you doubt will be of interest to your heirs. They may be items for which Rice has a true need or use, or they may be items that Rice can sell and use the proceeds for a purpose you designate, or they can even be used to fund a charitable remainder unitrust that pays out income payments to you and/or others.
These types of gifts include:
- Valuable art
- Coin or stamp collections
- Rare books
- Equipment
- Musical instruments
- Valuable jewelry
These gifts can also be of a less tangible variety, including:
- Software
- Royalty income (from mineral rights, licenses, inventions, copyrights, etc.)
- Intellectual property
Finally, these gifts can also be shared in:
- Closely held or private businesses
- Limited or family partnerships.
Gifts of personal property are guided by Rice Gift Acceptance Policies and Procedures and involve an evaluation process before final acceptance occurs.
If you have would like to learn more about making a gift of valuable personal property, please contact the Office of Gift Planning at giftplan@rice.edu or (713) 348-4624.
Gifts of Mineral Interests
Mineral interests involve ownership of the right to exploit, mine or produce minerals lying beneath the surface of real estate. Ownership of mineral interests produces standard royalty interests as well as working mineral interests and are most commonly the types of mineral interests donated to charity.
At this time, Rice accepts gifts of royalty interests only and is unable to accept gifts of working mineral interests.
How to make a gift of mineral interests
You can transfer mineral interests during your lifetime and receive a considerable charitable income tax deduction based on a qualified appraisal of the gift’s value. You convey the interest through a transfer of the ownership by a form of writing that satisfies formal state requirements via deed or lease. The Rice Minerals Department within the Rice Management Company will prepare the necessary documentation for the transfer and have the deed recorded.
If you have any questions about gifts of mineral interests, please contact Maureen Phillips in the Office of Gift Planning at Maureen.F.Phillips@rice.edu or at (713) 348-6017.
Deferred Gifts of Retirement Assets
Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, is an excellent way to make a gift to Rice University.
Benefits of gifts of retirement assets:
- Avoid or reduce potential estate tax on retirement assets.
- Your heirs can receive other assets that are not subject to income taxes and avoid income tax on any retirement assets funded on a pre-tax basis, such as traditional IRAs, 401(k)s, etc.
- It is easy and does not require anything more than a change in beneficiary designation form.
How to make a gift of retirement assets
To leave your retirement assets to Rice, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate Rice University as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
More on gifts of retirement assets
Did you know that 60% to 70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step-up in the cost basis, such as real estate and stock and give the retirement assets to Rice University. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.
If you would like language for your beneficiary designation form, please contact the Rice Office of Gift Planning. Otherwise, please let us know if you have already included Rice as a beneficiary of your retirement assets. We would like to thank you and recognize you for your gift.
Gifts of Cryptocurrency
Cryptocurrencies are decentralized digital or virtual forms of money. As cryptocurrency continues to grow in popularity, more and more donors are enjoying the benefits of using it as a philanthropic tool.
When you give a gift of cryptocurrency:
- You can avoid capital gains taxes.
- You can receive a federal tax deduction for the value of your gift.
- You can make a bold impact on Rice’s future.
Rice accepts gifts of cryptocurrency through a partnership with Charitable Solutions, LLC. To learn more about how you can make your mark on Rice with a gift of cryptocurrency, please contact Maureen Phillips in the Office of Gift Planning at Maureen.F.Phillips@rice.edu or at (713) 348-6017.
Gifts of Life Insurance
A gift of your life insurance policy is an excellent way to make a gift to Rice. If you have a life insurance policy that has outlasted its original purpose, consider making a gift of your insurance policy to Rice. For example, you may have purchased a policy to provide for minor children and they are now financially independent adults.
Benefits to making a gift of a life insurance policy:
- Receive a charitable income tax deduction.
- If Rice retains the policy to maturity, you can receive additional tax deductions by making annual gifts so that we can pay the premiums.
- If Rice cashes in the policy, you will be able to see firsthand how your gift supports our charitable work.
- If we retain the policy to maturity, or you name us as a beneficiary, once the policy matures, the proceeds of your policy will be paid to our organization so that we can use the proceeds to further our charitable work.
How to make Rice a beneficiary of life insurance
To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include Rice University as the beneficiary of your policy.
You can also designate Rice University as a partial, full or contingent beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. Your estate may benefit from an estate tax charitable deduction.
Your deduction for the gift of life insurance will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made.
Please let us know if you have already named us as a beneficiary of your life insurance policy. We would like to thank you and recognize you for your gift.
