This site is designed to describe a variety of ways you can make a gift to Western Kentucky University through the WKU Foundation or another University–related foundation. Such gifts make a significant impact upon the University’s goals of teaching, research, and public service while allowing you the personal satisfaction of helping Western play a leadership role in meeting the challenges of the 21st century.
Continuing to enhance our margin of excellence depends on increasing commitments from individuals in the private sector who share the University’s vision for the future. The Commonwealth of Kentucky can only guarantee that Western provides a basic level of education, while private support from loyal Western alumni and friends ensures the best faculty, the brightest students, and the most creative research projects.
It is important for you to find the method which best meets your needs while accomplishing you wishes. We hope this site will be helpful in structuring the most appropriate gift for your individual situation.
|
|
Current and Endowed Gifts
As an alumnus or friend of Western Kentucky University, you may support its, faculty students, and programs by contribution fund for current operations. Such gifts allow Western to respond quickly to areas of compelling need, such as building and renovation programs, or to take advantage of special opportunities such as inviting a visiting scholar to speak or purchasing an important piece of equipment or rare book.
A gift to establish or add to an endowed fund allows the donor to support Western in perpetuity. The gift remains intact, while a portion of the investment returns provides permanent support for a University program, such as a faculty chair or student scholarship. Your endowed fund becomes a part of the University’s permanent endowment, maintaining a separate identity as a specific account within the endowment.
The goal of WKU Foundation is to invest endowed funds so they will grow and maintain their purchasing power through all economics cycles. Therefore, foundation policies strike a balance between providing spendable income in a given year and preserving the principal of the endowment base for the future. Your name lives on with the gift forever, and you help ensure the continued success of the University in years to come.
Gifts of Cash
The simplest way to make a gift a gift to WKU is online at www.wku.edu/makeagift. You may also write a check, payable to the WKU Foundation. When you itemize your deductions, your gifts of cash may be deducted on your federal income tax return. Amounts up to 50 percent of your adjusted gross income may be deducted during the year of the gift, with any excess deductions carried forward for up to five additional years. Your actual savings depend on your tax rate and other factors. Generally, the higher the tax rate, the greater the savings. Cash gifts are considered transferred on the date they are hand-delivered or mailed. For example, although a year-end gift might not be received until January, it is still deductible for the previous year if it has a December postmark.
Gifts of Closely Held Stock
In some situation, 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 sizable gift.
When closely held stock is gifted, the donor is usually entitled to receive a charitable income tax deduction for the appraised value of the stock, in an amount up to 30 percent of adjusted growth income. Like gifts of appreciated securities and cash, any excess may be carried over into the next five years. This gift is beneficial because it allows the donor to make a gift without realizing capital gains tax on the appreciated value of the stock, and it allows the corporation to use a potentially taxable cash surplus for philanthropic purposes.
Gifts of Appreciated Securities
Giving stocks and bonds that have increases in value provides event greater tax benefits than gifts of cash. The market value of the securities is deductible (subject to applicable limitations), and you also avoid paying the capital gains tax on the appreciation. You may generally deduct gifts in the form of appreciated property up to 30 percent of your adjusted gross income with any excess deductible over the next five years.
Gifts of Objects
Donations of artwork, books, equipments and antique furniture are sometimes appropriate gifts to Western. Before making a gift of tangible personal property, however, please consult with the WKU Foundation to confirm that your gift can be uses as you wish while also meeting the needs of the University. If you gift is likely to be valued at more than $5,000 you must have it appraised by an independent appraiser within 60 days of the gift’s transfer to Western to determine the value of your deduction.
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. Such a gift will provide a 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. The usual five-year carry-over also applies.
Through various methods of managing property and arranging for its distribution to family and others, your 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 in that income taxes and estate taxes that may come due at death are avoided.
Gifts of Life Insurance
Naming Western as the owner or beneficiary of a paid-up 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 that was purchased to provide protection for dependent children or as part of a business partnership is no longer needed for this purpose often provides an excellent giving opportunity.
Introduction to Life Income Gifts
Gifts that provide income can be an excellent tool in retirement planning. These gifts allow you to make a significant contribution to Western while receiving benefits such as:
Income payments for your life or the life of your spouse or others
The probable elimination of capital gains tax on appreciated property
An income tax deduction
The probable reduction of estate taxes and probate costs
The personal fulfillment of directing your gift and supporting Western during your lifetime
Gift Annuities
A charitable gift annuity is a contract in which a donor exchanges a gift of cash or marketable securities such as stock or bonds (including mutual funds). In exchange, the donor and/or donor’s designate 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 until the death of the beneficiary. Other distinct advantages include: tax deduction savings, partial tax-free income, potential capital gains tax savings, and personal satisfaction from making a gift of lasting significance.
Charitable Remainder Trusts
A charitable remainder trust provides income to the donor 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: unitrust and the annuity 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.
Unitrusts
The donor’s payment is recalculates annually base 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.
Gifts Through Bequests
In addition to its importance to your family and others for whom your wish to provide, a bequest in your will can be a vehicle for giving to Western Kentucky University. 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. Testamentary gifts to Western are typically deductible for estate tax purposes and may be made in several ways.
Residuary Bequest
You may state that all, or a portion, of your estate be given to Western after specific amounts are distributed to other beneficiaries.
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 Western.
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 Western after the death of the last trust beneficiary.
Named Gift Opportunities
A gift to Western provides an ideal opportunity to permanently link your name, or a name honored by you, with traditions and future of the University through either the establishment of a named endowed fund or a gift to support capital needs. You may establish named endowed funds in support of the University’s programs, libraries, and institutes as well. Western also offers opportunities to name all or sections of buildings as well as courtyards, gardens, or other campus areas in accordance with University policy as established by the Board of Regents.
Professional Advice
This information is provided informational purposes for alumni and friends of Western Kentucky University 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. Western welcomes the opportunity to work with you and your advisors to establish individualized gift arrangements.