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 WKU provides a basic level of education, while private support from loyal alumni and friends ensures the best faculty, the brightest students and the most creative research projects.
There are many ways to support Western Kentucky University and share in the proud tradition that allows the University to achieve greater distinction and serve more people each year. You may make outright gifts or deferred gifts, indicate whether your gift is for immediate use or, at specified levels, establish a permanently endowed fund.
It is important for you to find the method that best meets your needs while accomplishing your wishes. We hope this brochure 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 contributing funds for current operations. Such gifts allow WKU 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 an endowed fund allows you to support WKU in perpetuity. The gift is left 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 the WKU’s foundations is to invest endowed funds so they will grow and maintain their purchasing power through all economic 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 the years to come.
“We are pleased that we can give back a little bit of what we gained to help support WKU and the Counseling Clinic in the years to come. When both of us are gone, we will still be counseling – wherever we are.” Page and Betty Talley
Photo: Jimmy Feix, Dr. Page (’53) and Betty Talley
Page Talley is retired from the Florida Atlantic University where he served as the Professor Emeritus in Counseling. The Talleys make their home in Sebastian, Fla., where Betty Talley serves as a counselor in the school system.
Gifts of Cash
The simplest way to make a gift to WKU is to write a check. 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 your 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 Appreciated Securities
Giving stocks and bonds that have increased in value provides even greater tax benefits than gifts of cash. The market value of the securities is deductible (subject to applicable limitations), and you also avoid paying 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.
“A gift of securities offers significant tax advantages. I have been fortunate with some of my stock picks, and that allows me to give gifts of great value. I have fond memories from my days as a student. There was always a sense of camaraderie and fellowship. Jan and I hope our support fosters that kind of atmosphere for many years to come. We want WKU to still be that truly unique place.” - Bobby Hensley
Photo: Jan Hensley (’68) and Bobby Hensley (’56, ’58)
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.
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 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, 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.
You will need to have your gift of real estate appraised by an independent appraiser to determine the value of your deduction, and you should first consult with the WKU Foundation to make sure your real estate is appropriate to the needs of the University.
When Joe and Ann Rose Richards inherited a portion of the family farm from his aunts, they wanted to honor his family. The gift will be used for scholarships in WKU’s Journalism Department and programs associated with the Kentucky Library and Museum.
“Giving the property to WKU was advantageous for us in terms of financial planning, and I think the gesture would please my family.” - Joe Richards and Ann Rose Richards
Photo: Joe (’65) and Ann Rose (’66) Richards
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 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 purchased to provide protection for dependent children or as part of a business partnership and 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.
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 WKU while receiving benefits such as:
- Income payments for your life 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 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. 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 Western Kentucky University 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.
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.
"Making a gift to create a Charitable Gift Annuity produced benefits for both WKU and our family. We receive the income from the annuity for life and a current income tax deduction, while the University knows it will have the funds to establish an endowment.” - Les and Dot Reeves
Photo: Lester (’47) and Dr. Dorothy (’57) Reeves
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. Lead trusts provide a charitable deduction to the donor for the University’s interest income and, under the proper circumstances, can allow the donor to pass property to family members at a greatly reduced estate or gift tax cost.
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.
“To make a gift to an institution that continues to mean so much to our family and for the gift (Trust) to provide annual income for the rest of our lives is a great combination. In addition to helping WKU’s College of Business and future students from Hardin County, we felt it made good business sense for our needs. The annual income we receive from our Trust has been a nice feature. When we established the Trust, we also received a nice charitable deduction toward our income taxes.” - Bob Owsley
Photo: Bob (’58) and Martha Owsley
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 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. 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.
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.
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.
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
This booklet is prepared as an informational piece 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.
Named Gift Opportunities
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.
Capital Construction and Renovations
Capital Construction — New Facilities......... 25 percent of estimated 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
Endowed Chairs/Professorships/Lecture Series
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
College/Departmental/Programmatic Endowments
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
Scholarships/Fellowships
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.......................................... $10,000 and above
Housing allowance................................. $80,000 and above
Meal allowance...................................... $50,000 and above
Book allowance...................................... $10,000 and above
Unrestricted Endowments
Unrestricted for the University......................... $25,000 and above
Unrestricted for Colleges ............................... $25,000 and above
Unrestricted for Departments or Programs........$25,000 and above
Additional Named Gift Opportunities
You may establish named endowed funds in support of the University’s programs, libraries and institutes as well. WKU 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
Gift 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 Society of 1906.......................... All planned gifts
Legacy Circle............................. Planned gifts valued at $100,000 and above
Additional information can be obtained by contacting:
Institutional Advancement
Western Kentucky University
1906 College Heights Blvd. #11005
Bowling Green, KY 42101-1005
(270) 745-6208
www.wku.edu