Teresa Y. Shaw '93 is one of Princeton University's youngest gift planning donors. Using a charitable remainder trust (CRT), she met a personal objective as well as a number of her financial objectives. She diversified her portfolio, prepared for retirement, minimized capital gains taxes, and secured an income tax deduction, all while making a gift to Princeton.

"I had a wonderful time at Princeton, and I wanted to give something back as soon as I was able to," says Shaw. "Incentive stock options gave me the opportunity, and gift planning provided the vehicle."

In early 1999, Shaw, like many people in high-tech industries, found herself owning highly-appreciated stock options. She contacted Princeton's Office of Gift Planning requesting information about life income gifts. After reviewing the Tiger Fund (the University's growth-oriented pooled income fund), and various charitable trusts, she chose to create a CRT.

Because of her age, she did not meet the requirements for a standard CRT. Instead, her financial advisor recommended a specialized version called the NIMCRUT, shorthand for “net income with make-up charitable remainder unitrust.” The trust will defer her income payments and the principal will grow tax-free for 10 years, when she may want to retire. She received a sizeable charitable deduction in a year when she had a high taxable income, and avoided capital gains tax on the appreciation of her stock. Shaw's gift will provide unrestricted support for the University.

Shaw, who now is studying at the School of Veterinary Medicine at Washington State University, says, "I would urge anyone in the same situation to consider the NIMCRUT. I found it to be the ultimate win-win situation, and I'd be happy to share my experience with other young alumni."