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Gifts of Cash
The simplest way to make a gift to WKU is online at www.wku.edu. You may also write a check or give through automatic funds transfer. When you itemize your deductions, your gifts of cash may be deducted on your federal income tax return. Benefits include:
- Amounts up to 50 percent of your adjusted gross income may be deducted during the year of the gift.
- Any excess deductions may be carried forward up to five additional years.
- Your actual savings depend on your tax rate and other factors. Generally, the higher the tax rate, the greater your savings.
Gifts of Appreciated Securities
Giving stocks and bonds that have increased in value provides even greater tax benefits than gifts of cash. Benefits include:
- The market value of the securities is deductible (subject to applicable limitations).
- Capital gains tax on the appreciation is avoided.
- Amounts up to 30 percent of your adjusted gross income may be deducted during the year of the gift.
- Any excess deductions may be carried forward up to five additional years.
Gifts of Closely Held Stock
In some situations, a donor may wish to make a gift of stock in a closely held corporation. If you own highly appreciated stock in a company that has significant cash reserves, this may be the best way for you to make a sizeable gift. Benefits include:
- The donor is usually entitled to receive a charitable income tax deduction for the appraised value of the stock, up to 30 percent of adjusted growth income.
- Any excess deductions may be carried forward up to five additional years.
- Capital gains tax on the appreciation is avoided.
- The corporation is allowed to use a potentially taxable cash surplus for philanthropic purposes.
Gifts of Real Estate
A gift of real estate can consist of almost any type of property: a primary residence, a vacation home, a farm or ranch, a commercial building, subdivision lots or an undeveloped parcel. Benefits include:
- Charitable deduction for the full fair market value of the gift, up to 30 percent of your adjusted gross income if you have held it for more than one year.
- Any excess deductions may be carried forward up to five additional years.
Through various methods of managing property and arranging for its distribution to family and others, you can minimize taxes and worries for your heirs. You may also be able to arrange a supplemental income for retirement through a charitable trust as part of your gift, or give a home while continuing to live there.
Gifts of Retirement Plans/Individual Retirement Accounts
Donors who participate in pension plans, Individual Retirement Accounts (IRAs), 401(k) plans, Keough plans, and other qualified retirement savings plans may designate the WKU Foundation as the death beneficiary. Gifts of retirement death benefits have tax advantages, as income taxes and estate taxes due upon death are wholly avoided.
Gifts of Life Insurance
Naming WKU as the owner or beneficiary of a life insurance policy entitles you to a deduction equal to your cost basis in the policy or its replacement cost, whichever is less. A policy purchased to provide protection for dependent children, or as part of a business partnership, that is no longer needed for this purpose often provides an excellent giving opportunity.
Gifts of Objects
Donations of artwork, books, equipment, and antique furniture are sometimes appropriate gifts to WKU. Before making a gift of tangible personal property, however, please consult with the University to confirm your gift can be used as you wish while also meeting the needs of WKU. If your gift is valued at $5,000 or more, you must have an independent appraisal within 60 days of the gift's transfer to WKU to determine the value of your deduction.
Charitable Gift Annuities
A charitable gift annuity is a contract in which a donor exchanges a gift of cash or marketable securities such as stocks or bonds (including mutual funds) to the WKU Foundation. In exchange, the donor and/or donor's designee will receive fixed payments for life. The payment does not fluctuate with the economy, so you know exactly how much income you will receive. What's more, you have no investment worries because the annuity payments are guaranteed by the Foundation until your death. Benefits include:
- Income payments for your life and/or the life of your spouse or others.
- Probable elimination of capital gains tax on appreciated property.
- A current income tax deduction.
- Probable reduction of estate taxes and probate costs.
- Personal fulfillment of directing your gift and supporting WKU during your lifetime.
Charitable Remainder Trusts
A charitable remainder trust provides income to the donor and/or other beneficiaries for life or a set term of years, leaving the remainder to the WKU Foundation at the end of the trust.
The flexibility of a charitable remainder trust allows a donor to design an arrangement specifically suited to his or her needs and to use various types of property in its funding. A donor may choose from two basic types of charitable remainder trusts: the unitrust and the annuity trust.
Both the unitrust and the annuity trust are required to pay at least five percent of the initial fair market value of the gift, and both may be established for a minimum of $100,000. The donor’s income tax deduction is based on the amount of the gift, the ages of the beneficiaries, and the percentage of the trust assets received as income.
In addition, either a unitrust or annuity trust may be structured for a certain term of years, or for life. Such an arrangement is often used while children are in college and extra income is needed. Benefits include:
- Income payments for your life and/or the life of your spouse or others.
- Probable elimination of capital gains tax on appreciated property.
- A current income tax deduction.
- Probable reduction of estate taxes and probate costs.
- Personal fulfillment of directing your gift and supporting WKU during your lifetime.
Unitrusts
- The donor's payment is recalculated annually based on the unitrust's asset value on the first business day of the year.
- Required to pay at least five percent of the initial fair market value.
- Additions may be made to this trust.
Annuity Trusts
- Pays a fixed dollar amount (annuity) to the named beneficiary(ies).
- Generally, the more income you receive, the lower your tax deduction.
- Since additions cannot be made to an annuity, you may establish more than one.
Charitable Lead Trust
A charitable lead trust provides income to WKU for a set term of years, after which the remainder may be transferred to the donor’s family or heirs. A lead trust is often used in planning a sizeable estate, with advice being provided by legal and tax advisors having experience with the application of lead trusts in estate planning. Benefits include:
- Charitable deduction to the donor for the University's interest income.
- Can allow the donor to pass property to family members at a greatly reduced estate or gift tax cost.
Gifts Through Bequests
In addition to its importance to your family and others for whom you wish to provide, a bequest in your will can be a vehicle for giving to WKU. It is a convenient way to know your property will be put to good use after you no longer need it. A gift may be included in your original will or added as a codicil by your attorney at a later date. Gifts through wills are popular because they are easy to arrange. Testamentary gifts to WKU are typically deductible for estate tax purposes and may be made in several ways.
Specific Bequest
You may stipulate that a certain percentage of your estate, a certain dollar amount, or particular securities or other assets be given to WKU.
Residuary Bequest
You may state that all, or a portion, of your estate be given to WKU after specific amounts are distributed to other beneficiaries.
Testamentary Charitable Trust
You may establish a unitrust or annuity trust for the benefit of specific beneficiaries through your will. The trust principal is transferred to WKU after the death of the last trust beneficiary.
Professional Advice
Ways of Giving is informational material for alumni and friends of WKU and is not intended as legal or financial planning advice. It is important that you consult with your attorney or other financial advisors as to the applicability of any item relevant to your own situation prior to making a gift to the WKU Foundation. WKU welcomes the opportunity to work with you and your advisors to establish individualized gift arrangements.
Donor Recognition
Lifetime Gift Recognition
To honor the leadership and lifelong dedication of the University’s most generous supporters, WKU has formed five cumulative giving levels within the Henry Hardin Cherry Society.
Henry Hardin Cherry Society
- Baker-Ford - $5,000,000 and above
- Spirit of Western - $1,000,000 to $4,999,999
- Colonnade - $500,000 to $999,999
- Cornerstone - $100,000 to $499,999
- Commencement - $25,000 to $99,999
Annual Gift Recognition
To honor gifts to the WKU Annual Fund for academic enrichment, the University has formed five annual giving circles.
- President’s Circle
- Founder $10,000 and above
- Regent $5,000-9,999
- Trustee $2,500-4,999
- Director $1,000-2,499
- Dean’s Circle $500-999
- Scholar’s Circle $250-499
- Century Circle $100-249
- Inaugural Circle $1-99
Planned Gift Recognition
The Society of 1906 is the recognition society for individuals who make Western Kentucky University a part of their estate plans by including a bequest to the University in their wills, by participating in any of the various lifetime income plans the University has available, by designating the University as beneficiary of a trust, by naming the University as beneficiary of retirement plan assets, or by making the University beneficiary of insurance policies of which ownership has been assigned to the University.
If WKU is a part of your estate plan, please let us know. If you have been thinking of including WKU in your estate plans or need further assistance, we would like to hear from you.
The Legacy Circle of the Society of 1906 recognizes planned gifts valued at $100,000 and above.
A gift to WKU provides an ideal opportunity to permanently link your name, or a name honored by you, with the traditions and future of the University through either the establishment of a named endowed fund or a gift to support capital needs. WKU offers various named gift opportunities, with minimum amounts described as follows. Naming opportunities are provided in accordance with University policy as established by the Board of Regents.
| New Facilities | 25 percent of estimate cost |
| Naming of Existing Building | $1,000,000 and above |
| Support for Facilities Renovations | 25 percent of estimated cost |
| Auditorium, Atriums, and Public Spaces within Buildings | $350,000 and above |
| Classrooms | $100,000 and above |
| Outdoor Physical Commemoratives | Policy available upon request |
| Regents Chair | $2,000,000 and above |
| Endowed University Professorship | $1,000,000 and above |
| Endowed Visiting Professorship | $500,000 and above |
| Endowed Visiting Lecture Series | $100,000 and above |
| Named College | $15,000,000 and above |
| Named School | $10,000,000 and above |
| Named Institute/Program/Center | $5,000,000 and above |
| Named Department | $2,500,000 and above |
| Endowed Fund in Support of a College, Department or Program | $100,000 and above |
| Endowed Presidential Scholarship (In-state tuition, housing allowance, meal allowance, book allowance) |
$300,000 and above |
| Endowed Award of Excellence Scholarship (In-state tuition, housing allowance, book allowance) |
$250,000 and above |
| Endowed Regents Scholarship or Graduate Assistantship (In-state tuition) |
$150,000 and above |
| Endowed Award --Housing allowance --Meal allowance --Book allowance |
$10,000 and above $80,000 and above $50,000 and above $10,000 and above |
| Unrestricted for the University | $25,000 and above |
| Unrestricted for Colleges | $25,000 and above |
| Unrestricted for Departments or Programs | $25,00 and above |