Make a Gift With Perennial BenefitsWhat’s an endowment? It is simply the donation of funds to a charitable organization, like Saint Mary's University, to provide an ongoing source of income for the care or financing of a concern that’s close to your heart. Another way to fund an endowment is through a foundation, either your own or an existing one.
Direct Gifts
You may prefer to create an endowment by a tax-deductible contribution or bequest directly to Saint Mary's University, specifying how you want the income used.
This is the easiest and most economical way to perpetually support Saint Mary's University.
You arrange with Saint Mary's University to keep and invest your gift in a restricted account and use the income annually for the purpose you have directed. An endowment is often established in memory of the donor or a person beloved by the donor. Most organizations are pleased to honor your request and have many ways of granting appropriate recognition.
Because of the long-term nature of an endowment and the language needed in your will, trust or other document to ensure that your intent is realized, see experienced counsel before making arrangements.
Private and Public Foundations
A private foundation is often set up by a family with one large gift. Thereafter, the foundation gives money away in perpetuity. In effect, you’re creating your own charity, which is subject to both IRS regulations and any applicable state laws.
Be prepared to encounter many restrictions involved in establishing a private foundation; experts agree that it certainly is not the easiest thing to do. Generally, it is best if you have at least $5 million to give in order to justify the significant expenses.
Community organizations and gift funds offer simpler alternatives. A community foundation manages the donations it receives and distributes the money to local charitable organizations. Since the community foundation is a charitable organization itself, you can claim a deduction for your donation in the year you make it. You can choose to support a particular organization or suggest how or where you would like your money spent.
How to Get Started
The memory of your wise philanthropy can be immortal. We’ll help you create an endowment and achieve the timeless recognition you richly deserve. We’ll explain your tax savings, too. Just arrange a meeting with The Office of Gift Planning—without obligation.
Please call The Office of Gift Planning at 507-457-6647, or e-mail us at giving@smumn.edu, for more information.
A Fitting RecognitionBy establishing a memorial, you honor a loved one or yourself, and you show your interest in our good works through your charitable gift. You also receive personal financial benefits from your contribution—tax savings, reduced estate settlement costs.
How It Works
Generally, there are three methods of establishing an honorary gift:
Outright—The most tangible financial benefits of establishing an outright gift can include an income tax deduction and possibly capital gains tax avoidance.
By will—You can make a bequest in your will, stating that either a certain dollar amount, a percentage of your estate or the residue of your estate will pass to Saint Mary's University at your death in honor of (or in memory of) your loved one.
Through an endowment—Honorary endowments, which can be made now or through your will or estate plan, are structured so that the investment income, rather than the principal, is used to fund a particular purpose, such as funding a facility, program or annual event. To perpetuate the fund, the principal always remains invested, so your gift can continue forever.
Find Out More
Making an honorary gift to Saint Mary's University is a wonderful way to acknowledge someone’s vision for the future. We would be pleased to recognize your honoree.
Please contact The Office of Gift Planning at 507-457-6647, or e-mail us at giving@smumn.edu, for more information.
Follow in These Footsteps: Make a Memorial GiftEstablishing a memorial is a twofold gesture. First, you honor a loved one or yourself. Second, your charitable gift serves as an endorsement of our good works.
Here are just a few of the ways people have used memorial gifts to honor important people and organizations in their lives:
- An Alabama businessman founded a Reading Is Fundamental chapter named after his late wife. The chapter has served hundreds of thousands of children.
- An Iowa woman created a veterinary scholarship in honor of the two veterinarians who lovingly cared for her cats for many years.
- A New York couple funded a city park in remembrance of their son, who died at age 21.
- Members of an Alabama YMCA camp constructed a chapel on the camp grounds in memory of four young counselors who were killed in a car-train collision.
Aside from the emotional rewards that a memorial gift brings, you may receive significant financial benefits from your contribution depending on the type of gift, including:
- Income and capital gains tax savings
- Reduced estate taxes
Many methods can be used to create memorials. Common methods include outright gifts and gifts made through a will or trust. Other alternatives, however, are also effective, such as through a life insurance policy or a gift upon death from an IRA or retirement plan.
Charitable organizations honor memorial gifts in many ways, such as associating an honoree's name with a report or program, or inscribing it on a plaque. Grants, scholarships and prizes to deserving individuals or causes could also be awarded in memory of the person. For a larger gift, his or her name could appear on a room, auditorium or building.
The Honor Is Yours
You may feel reluctant to condition your gift upon personal recognition. Yet allowing us to use your name or the name of a loved one can inspire philanthropy in others and further a cause that's important to you.
To make certain your gift or future bequest will receive proper recognition, we invite you to meet with our representative to discuss your wishes.
Please contact The Office of Gift Planning at 507-457-6647, or via e-mail at giving@smumn.edu, for more information.
Will Your Values Live On?Have you considered establishing an endowment fund? It's a powerful way to perpetually support a gift to us in your name or the name of a loved one while realizing tax benefits for your kindness.
How It Works
An endowment program is simply the time-honored method of allocating certain gifts to an investment fund. This fund is invested to earn income each year, and as the principal grows, so does the income. The fund income is used to support us, but the principal always remains invested in order to perpetuate the fund.
When you make a gift to our endowment fund, it can be outright or deferred. Either way, your gift can turn into a legacy of annual gifts long into the future.
Suppose you'd like to make sure we receive $1,000 every year after your lifetime. Let's say we spend 5 percent of our endowment each year. This doesn't mean the fund earns a total return of only 5 percent, only that we spend that amount; we will reinvest the difference to offset inflation.
To calculate the amount needed to perpetuate your gift, divide the annual gift amount, $1,000, by the amount called for in the spending policy, 5 percent, and you get $20,000. So, contributing just $20,000 can continue the $1,000 annual gift indefinitely!
If the value of the endowment fund grows beyond the spending amount, so does the income. For example, with a total return of 10 percent in one year and with only a 5 percent spending rate, the other 5 percent is reinvested. By the second year, the value of the fund is 5 percent higher, or $21,000, and the "gift" from the fund is $1,050.
The Possibilities
Endowment funds ensure the future of our mission and enhance the quality of our opportunities for service. They also allow you to leave a legacy with us.
Please contact The Office of Gift Planning at 507-457-6647, or via e-mail at giving@smumn.edu, to determine minimum gift amounts associated with this type of gift.
How to Turn Modest Donations Into Big DollarsSeveral years ago, one couple made a $712 donation to their favorite cause, and they've been contributing ever since. Some years their annual gift was a modest $20; other years they made no donation at all. In total, they've donated more than $9,000, but the value of their gifts is now more than $51,000. How can this be?
They had the foresight to establish an endowment fund in their name. Rather than spending their donations each year, their gifts are invested in the fund. As the principal of the investment grows, so does the income. That ever-growing income is used to support the work they care about, but the principal always remains invested in order to perpetuate the fund.
Getting Started
When you make a gift to an endowment fund, it can either be outright or deferred (such as through a bequest in a will). Either way, your one gift can turn into a legacy of annual gifts long into the future.
Suppose you'd like to make sure we receive $1,000 every year, even after your lifetime. Let's say Saint Mary's University spends 5 percent of its endowment each year. To calculate the amount needed to perpetuate your gift, divide the annual gift amount, $1,000, by the amount called for in the spending policy, 5 percent, and you get $20,000. So, contributing $20,000 would continue the $1,000 annual gift indefinitely.
If the value of the endowment fund grows beyond the spending amount, so does the income. For example, if the fund shows a net return of 10 percent in one year, 5 percent would be spent and the other 5 percent would be reinvested. By the second year, the value of the fund would be 5 percent higher, or $21,000, and the "gift" from the fund would be $1,050.
There may be minimums associated with this type of gift. Please contact The Office of Gift Planning at 507-457-6647, or via e-mail at giving@smumn.edu, before making such an arrangement.
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