Gift planning enables you to leave a legacy at the University of Evansville and support future generations of students. We would be pleased to help you and your advisors develop a gift plan that meets your financial and philanthropic goals.
There are numerous ways to remember UE in your estate plans, including bequests, insurance and retirement plan beneficiary designations and charitable gift annuities of charitable trusts. In fact, many of these ways provide benefits for both you and UE.
Please look around and explore the benefits of gift planning and contact Abigail Werling our Director of Gift Planning and Capital Support for more assistance at (812) 488-2272.
There are many ways to achieve your goals by making a gift to the University of Evansville.
I want to...
|Make a gift for UE's future
that costs me nothing now.
|Strategy: Include a gift from your will or trust (cash, property, or a share of the estate).||Benefits: A great way to help UE build financial strength and provide resources that maintain our traditions.|
|Avoid capital gains liability and
take an income tax reduction.
|Strategy: Use appreciated securities instead of cash to make your gift.||Benefits: Buy low and give high--while avoiding capital gains tax.|
|Leave more of my
estate to my heirs
|Strategy: Name UE as beneficiary of your retirement plan, and leave less-taxed assets to family.||Benefits: Eliminate income tax on retirement plan assets, and free up other property to pass to your heirs.|
|Continue to receive benefits back from
the assets I give to UE — and thus make a larger gift.
|Strategy: Create a life-income plan like a charitable gift annuity or a charitable remainder annuity trust or charitable remainder unitrust.||Benefits: Receive income for your lifetime, receive a charitable deduction, and diversify your holdings.|
|Reduce high tax liability now;
gain additional income later.
|Strategy: Establish a deferred gift annuity.||Benefits: Receive a larger deduction and a higher income rate than an immediate payment annuity.|
|Create a long-term gift that
won't draw funds from my estate.
|Strategy: Create a new life insurance policy, or donate a paid-up policy of coverage you no longer need.||Benefits: Increase your ability to make a significant gift to UE.|
|Reduce gift and estate taxes and
leave more of my assets to my heirs.
|Strategy: Create a charitable lead trust to pay income to UE for a fixed time, and then pay the remainder to your heirs.||Benefits: Reduce gift and estate taxes, and freeze the taxable value of growing assets before they pass to your family.|
A donor can leave behind property to UE by including a bequest in your will. You can leave property that passes through a beneficiary designation (such as individual retirement accounts) by designating UE as a beneficiary.
Among the types of bequests available as planned gifts to UE are:
Specific Asset Bequests: many bequests transfer a specific item to a beneficiary (I give me car to UE).
Specific Amount: another common transfer within a will is the list of a specific dollar amount (I give $1,000 to UE).
Bequest of a Percent of the Residue: a fraction or percent of what remains in the estate can be transferred to UE (I give 50% of the residue of my estate to UE).
Undivided Percentage of Asset Bequests: You can bequeath or devise an undivided percentage of a particular asset (I give half of my home to UE).
A charitable gift annuity (CGA) is a contract between you and the University of Evansville. In exchange for a gift the lifetime(s) of one or two individuals.
Payout Rate: gift annuity payments are based on a rate schedule. UE uses rates set by the American Council on Gift Annuities (ACGA). Under the ACGA’s rates, the older the age of the person receiving the gift annuity payments, the higher the rate. (rates are capped at 90)
Taxation of Payments: a predetermined portion of each gift annuity payment is tax free, and the remaining amount of each payment is taxable at either capital gain or ordinary income tax rates.
Timing: A gift annuity contract can begin making payments immediately (a current gift annuity) or defer payments for at least one year (a deferred gift annuity).
One method of making a gift with a retained right income is a through a charitable remainder trust (CRT) is a fund which allows you to transfer cash or appreciated property. As a tax-exempt trust, the CRT then can sell your property without paying capital gains tax. Some of the benefits a CRT can provide:
- An income for you and/or your beneficiaries for life or a period of up to 20 years
- An immediate and substantial income tax charitable deduction (subject to the annual AGI limitations)
- No capital gains owed on the transfer of long-term appreciated property to the trust
- Reduction of your estate to avoid or reduce death taxes
- Substantial reduction of probate costs, taxes and other estate transfer expenses
A Charitable Lead Trust (CLT) works a lot like a CRT, in that a donor transfers cash or property to the trust. Unlike a CRT, though, a CLT is a taxable trust. Each year, the CLT will report its income and take a deduction for the amount that it distributes to UE. Any excess income is taxable. Some of the benefits a CLT can provide:
- Income payments to UE for a term reduce the ultimate tax cost of transferring an asset to your heirs
- The amount and term of the payments to UE can be set so as to reduce or even eliminate transfer taxes due with the principal reverts to your heirs
- All appreciation that takes place in the trust goes tax-free to the individuals named in your trust
In the case of a Life Estate Reserved, a donor would execute a deed transferring a house or farm to UE.
On that deed, the donor retains a “life estate” that grants the right to use the home for life. At the time of the gift, the donor and UE enter into a maintenance, insurance and taxes (MIT) agreement.
- The life estate typically lasts for the life of the donor
- The deed of the remainder interest to UE must not be restricted
- It is possible for a donor to make a gift of a remainder interest even though there is a mortgage on the residence
- The donor agrees to be responsible for the maintenance, insurance and taxes on the property
Gifts of long term appreciated securities are the most common type of outright property gift. Typically, individual stocks are given; however, highly appreciated bonds or mutual fund shares are also attractive gift options. Outright gifts of securities can be made quickly and these gifts let you do more with your gift because of the very attractive tax benefits.
For appreciated property held long term, the full fair market value of securities given to charity is generally deductible. For example, if you give shares of stock that are now worth $10,000 you can deduct the full amount of the gift on your income tax return (subject to certain income limitations), even though you may have bought the stock for less than $1,000.
A charitable gift of securities held long-term is not considered a sale of the securities and does not generate any capital gains tax. This is a valuable tax reward provided by Congress to encourage gifts of appreciated property.
Indeed, no matter how much a security has appreciated in value, a charitable gift will not make any part of your paper profit taxable. The result: a charitable deduction is allowed for profits that have never been taxed. And, if UE sell the securities, UE keep every penny of the proceeds since UE is tax exempt.
In a Bargain Sale, the University of Evansville purchases property from a donor for less than fair market value, or accepts a gift of mortgaged payment.
- The donor receives a charitable deduction for the difference between the fair market value of the property transferred and the cash received in the bargain sale
- A donor sells the property to UE and received a cash payment or debt relief
- The donor receives the cash or debt relief they desire and UE receives a valuable property for a payment of less than the fair market value price. The difference between the sale price and the appraised value of the property is a gift to UE
Planned Giving Advisory Council
University of Evansville Planned Giving Advisory Councils in Evansville and Indianapolis are community volunteer groups that exist to provide input and advice to UE Development staff members working in the Gift Planning and Capital Support area.
- Grant Glackman: Partner at BKD, LLP
- Elizabeth Doty: Financial Advisor at Merrill Lynch
- James Burger ‘88: Sr. Vice President, Wealth Management at Old National Bank
- Bill Bussing ‘77: Attorney
- Beth Clark ‘88: Evansville Market President, Ohio Valley Financial Group
- Thornton Patberg ‘52: Retired University of Evansville Administrator
- Denise Johnson: Executive Director of Parks & Recreation at City of Evansville-Vanderburgh County
- Casey Lindeman ‘10: Attorney, Lindeman Law, LLC
- Thomas Southwood ‘81: Sales/agent at New York Life Insurance Company
- Martha Thornbury ‘87: Marketing Communications Specialist at Old National Bank
- John Hegeman: Partner at Kahn Dees Donovan & Kahn, LLP
- Curtis Shirley ‘83: Attorney, Law Office of Curtis Shirley
- Martha Starkey ‘76: Attorney, Harrison & Moberly
- David Franklin ‘02: Vice President, Portfolio Manager, Regions
- Stephen Edmondson ‘66: Senior Vice President - Investments, Edmondson, Huser & Castelli Wealth Management Group of Wells Fargo Advisors
- Mike Kurtz: Regional Manager, Interstate Marketing Associates
- Drew Gore ‘05: Manager, Financial Services - Prudential