In What Ways Can I Give?
 There are many ways to support IUP – ways that will benefit you as well as the university. If you have any questions, feel free to
contact us.
Some options:
- You may
designate how your gift is used.
- You can make an immediate impact by making an
outright gift, which could involve anything from cash to real estate.
- You may make a
planned gift which involves a specific arrangement that provides special benefits to both the donors and the university.
In all cases, gifts are made to the Foundation for IUP, 103 Sutton Hall, 1011 South Drive, Indiana, Pa. 15701. To contact us, email:
iup-giving@iup.edu.
Designating How Your Gift is Used
Outright Gifts
Planned Gifts
Designating How Your Gift is Used
In making a gift, you can indicate that it is “unrestricted,” which allows
the university to use the funds where they are needed most. Or you may
direct your gift to a particular program or
purpose.
You may choose to support an endowment (which is an ongoing fund that
uses the interest only) or you may make it available for immediate use.
Either way, under most circumstances, your gift will entitle you to tax
benefits. And, in all circumstances, your gift – regardless
of size – will have a positive impact on the future promise and plans
of IUP.
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Outright Gifts
Each year, alumni and friends along with corporations and foundations
provide the university with much-needed financial assistance through
outright gifts of cash, securities or other property. Outright gifts
have an immediate impact on IUP’s students and programs because most
can be used to meet current needs. Outright gifts also can be used to
create scholarships or other endowed funds, support an academic program,
or be designated to a capital project.
Cash
Gifts and pledges of cash are the easiest and most direct way to give
to IUP. Most alumni and friends support IUP’s Annual Fund
with gifts of cash by check, credit card, or money order. Such gifts
can be made anytime.
Securities
A gift of appreciated or long-held securities is a popular alternative
to cash gifts because you may save taxes twice. You receive an immediate
income tax deduction for the full fair market value of your securities
(if they have been held for more than one year), and you also may avoid
capital gains tax on any appreciation above the stock’s initial costs.
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Closely-Held Stock
Stock or securities in a company that is not publicly traded are known
as “closely-held stock.” As with gifts of appreciated, publicly traded
securities, you may save taxes twice – first with an immediate personal
income tax deduction for the fair market value of the stock; and second,
by avoiding capital gains tax on the appreciation.
Additional benefits depend on the gift plan. Because of special legal
issues and marketability of the stock, each gift of closely-held stock
must be evaluated and designed individually between the donor, appropriate
advisors and the Foundation for IUP.
Personal Property
Some donors choose to give a collection of art,
rare books, antiques, equipment, or other items. Such treasures are gifts
of personal property – also known as “gifts-in-kind.”
Gifts of personal property can entitle you to an income tax deduction.
Gifts-in-kind that have a use related to IUP’s mission or programs offer
particularly favorable tax benefits. For example, a painting given to
the University Museum for its permanent collection, or a collection of
first edition volumes of the works of Ernest Hemmingway to the Special
Collections of the Patrick J. Stapleton Library, are gifts used for related
purposes.
In contrast, a gift of personal property – such as a sail boat or coin
collection – is seen as “unrelated,” as defined by the Internal Revenue
Service, if the university is to sell the property and use the proceeds
to support its mission. In such a case, the income tax charitable deduction
is limited to the donor’s cost basis in the property.
All gifts of personal property must be reviewed and approved according
to the policies of the Foundation for IUP prior to acceptance.
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Gifts of Real Estate
A personal residence, vacation home, farm, or other real estate may be
given to benefit IUP. Making an outright gift of appreciated real estate
held for more than one year can offer an immediate income tax charitable
deduction for up to 30 percent of your adjusted gross income. Any excess
deduction not used in the year of the gift may be carried over and used
for up to five additional years.
Real estate may also be used in planned gift arrangements.
Again, you would receive specific tax savings for such a gift.
Because of the special considerations involved with gifts of real estate,
each gift should be discussed individually between the donor, appropriate
advisors and a development officer at IUP before plans are finalized.
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Bargain Sale Gifts
Through a special gift arrangement called a “bargain sale,” you can make
a gift to IUP by selling property to the university at a price less than
its fair market value. The difference between the property’s fair market
value and the purchase price paid by IUP is considered a gift – and entitles
you to a charitable income tax deduction. A bargain sale is an attractive
gift option for individuals who would like to make a gift of property
that the university specifically wants or needs.
Planned Gifts
Planned gifts are arrangements that provide special benefits to both
the donors and the university by blending philanthropy with the overall
financial and estate plans of donors. Planned gifts can involve the immediate
transfer of cash or property or they can be made through an estate plan
to pass to the university at the time of the donor’s passing. Oftentimes,
a planned gift is the ultimate or largest gift donors make to support
an organization or cause that is special to them.
Some questions for you to consider in making a planned gift include:
What are my personal goals and needs? What are my financial objectives?
What are my assets and which one would be best to use to make my gift?
Which gift plans can accomplish my goals for my family and IUP?
Below are some of the options you might consider. Given the potential
complexity of gift techniques, the university’s planned giving professionals
are available to help you. By working together, you, your advisors, and
our planned giving professional can create a distinctive gift that blends
your vision and interests with the mission and future promise of IUP.
Questions? Be sure to contact us.
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Bequest
After providing for family, friends and others, many alumni and community
friends choose to include a meaningful gift to benefit IUP and our students
in their estate plans.
Gifts by bequest can take many forms: bequests of a stated dollar amount,
specific bequests of tangible property, bequests of a percentage of the
estate, or a residual bequest of the remainder of an estate after all
other provisions have been fulfilled. Your estate benefits from an estate
tax deduction for your gift.
It is important that the bequest be correctly worded in your will and
we are happy to provide you and your legal counsel with suggested terminology.
Also, we feel it is important for the university to know your plans for
several reasons. First, we’d like to have the opportunity to acknowledge
your generosity with membership in the Oak Grove Society. Second, we
want to understand any designations you have for your gift. Any information
concerning your plans will remain confidential; any publicity of your
gift would be done only with your approval.
Living Trust
A popular estate planning technique is the living trust, which is created
and begins functioning during your lifetime.
The trust agreement keeps you in control of your assets during your lifetime
and specifies how your property should be distributed upon your death.
A living trust can be revocable or irrevocable. Depending on where you
live, a living trust can avoid probate delays and reduce the expenses
associated with estate administration.
To ensure that your wishes will be fulfilled, please contact the planned
giving professionals at IUP for suggestions regarding the wording of
your gift.
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Life Insurance
Life insurance enables donors to make a significant gift with a minimum
investment. You may choose to make a gift of a new policy, a paid-up
policy, or an existing policy that is no longer needed to secure the
future of your loved ones.
A gift of an existing policy that you own may be completed by assigning
ownership and delivering the policy to the Foundation for IUP. You would
receive an immediate income tax charitable deduction for the current
value of the policy.
If you give a policy that is not fully paid up, you receive additional
charitable deductions for our annual premium payments as you continue
to make them through the Foundation for IUP.
You can also make the Foundation for IUP the beneficiary of insurance.
While you won’t receive any immediate tax benefits, you will create a
lasting legacy at IUP.
You may designate the purpose of your gift of life insurance, and when
IUP receives the policy proceeds, they will be used as you’ve specified.
We ask that you share your plans with us so we can acknowledge your gift
and assure you that your gift will be used appropriately. Any information
is held in confidence.
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Retirement Plan Designations
Many individuals have supplemented their guaranteed retirement plans
through Social Security and Medicare systems by investing in IRAs (Individual
Retirement Accounts), pension and profit-sharing plans, mutual funds,
and other savings vehicles.
You can designate IUP as a beneficiary of any remaining funds you do
not use. During your life, you retain complete control and access to
the funds. With this type of gift, you will receive an estate tax deduction
and the satisfaction of knowing that you’ve made a meaning and significant
gift to IUP.
Your employer or financial advisor can assist you in making this type
of designation. We do ask that you notify the Foundation for IUP of your
intention, so we can assist you in determining how your gift will be
used and thank you for your thoughtfulness. Your plans will remain confidential.
Charitable Lead Trust
A charitable lead trust provides a gift of income to the Foundation for
IUP for a length of time. For example, you place assets in a trust and
select the length of time your trust will last. Income from the trust
is paid to the Foundation for IUP for the specified amount of time. When
the trust terminates at the end of the time period, the assets or trust
principal are returned to you or distributed to whomever you choose.
You can specify how the income from the trust is to be used at IUP.
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Life Income-Producing Gift Plans
Several gift plans available through the Foundation for IUP enable you
to make a gift while providing an income for yourself or others. A life
income-producing gift plan operates as follows: you irrevocably contribute
cash, appreciated securities or other property to the foundation, which
then sells, reinvests the property, and pays an annual income to you
or up to two beneficiaries for life or a specific term of years. After
the death of the last beneficiary or the end of the term agreement, the
remainder of your gift is available to benefit IUP and the purposes you
designated at the time of your contribution.
These plans noted below can be created during a donor’s lifetime or established
through an estate plan. All provide charitable income tax deductions,
and if funded with appreciated property, they may help to reduce or bypass
capital gains tax as well. Each plan also can be designed to help reduce
or eliminate estate taxes.
Confidential discussions and careful planning with your advisors and
the university can determine the most effective and best gift plan for
your situation. We would be pleased to provide you with details of personal
benefits and financial implications of a lifetime or testamentary gift
using any of the income-producing plans.
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Gift Annuity
The charitable gift annuity is among the easiest and most popular ways
of making a planned gift. It is a simple contract between a donor and
the Foundation for IUP. Here’s how it works: you make a gift of cash
or readily marketable securities to the Foundation for IUP, and, based
upon specific calculations, the Foundation makes a simple agreement to
pay you a fixed percentage of the value of your gift for the lives of
up to two individuals. You may be -- but do not have to be -- one of
the annuitants. The minimum gift is $10,000 of each annuity and each
annuitant must be at least 60 years of age.
You may choose to be paid annually or quarterly, and the agreement is
effective immediately. You receive an immediate income tax deduction,
based on the remainder value of your gift. In addition, a portion of
the annual income you’ll receive from IUP will be tax-free return of
principal. The annuity rate and the value of the gift are based upon
the age of the annuitant(s).
A variation of the gift annuity is a deferred gift annuity – designed
to enable younger donors (must be at least 35 years of age) to enjoy
a current income tax deduction, but who will wait to collect any income
until they reach 60 years of age.
Upon the expiration of the lifetime income interest, IUP will use the
remainder of your gift for a purpose you designate, or if unrestricted,
to meet the most crucial needs of the university.
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Charitable Remainder Trust
It seems everyone has heard of trusts – from living trusts and bypass
trusts to family trusts and generation-skipping trusts. Charitable remainder
trusts are remarkably similar to a gift annuity in that a donor makes
a gift of cash, securities, or other marketable property to the Foundation
in exchange for an annual income. Simply put, a trust is a legal agreement
that specifies how the assets placed under the trust will be managed
and how the payout will be determined. There are two types of charitable
remainder trusts – the annuity trust and the unitrust – available for
benefactors of the IUP and the best type for you depends on your individual
needs.
The annuity trust provides an annual payment as a fixed percentage –
it must be at least 5 percent – of the fair market value of the trust
assets at the time the property is transferred into the trust. In contrast,
the unitrust provides a variable annual payment, based on a percentage
of the trust assets as revalued annually. Donors who prefer certainty
in their annual payment prefer the annuity trust, while individuals who
like flexibility may opt to establish a unitrust.
As with other planned gifts, confidential discussions and careful planning
with your advisors and one of the planned giving professionals at IUP
can ensure that your trust will meet your needs and fulfill your interests.
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