Savings Bonds: An Unlikely (But Smart) Gift

Savings bonds may not come to mind when you consider ways you can make an impact on the University of Massachusetts Boston. However, if you want to relieve some of the tax burden that can come from redeeming bonds during your lifetime, a gift may be a smart choice.

Savings bonds can’t be donated directly to a charitable organization during your lifetime, but you can use your bonds to support our mission in these ways:

• Leave the bonds to University of Massachusetts Foundation through your will. This will qualify them for relief from income and estate taxes, and we’ll receive the full value of the bonds.
• After your lifetime, leave the bonds to a charitable remainder trust that will first benefit your family with lifetime payments and then support UMass Boston with the remaining balance.
• Redeem the savings bonds and use the cash to make a gift to University of Massachusetts Foundation. Note: The redemption still triggers a tax liability to you on the interest income, but you may be able to take a charitable deduction for the amount of your gift, if you itemize.

If you have questions about these donation opportunities, please don’t hesitate to contact Ryan D. McDonald at 617.287.7597 or ryan.mcdonald@umb.edu. We would be happy to assist you in determining the best option for you.