Types of Gifts

In addition to outright gifts of cash, stock, or property, you may want to consider these options:

Endowments

Endowments use interest earned from donated principal to fund headships, directorships, professorships, scholarships, laboratories even entire academic programs.

Endowments are gifts held in perpetuity and invested in a manner that protects the principal from inflation. The investment income provides a stable funding source for the purpose of your choice.

Purdue has received and managed hundreds of endowment gifts over the years. Collectively, these gifts make up the Purdue University Endowment.

Charitable Remainder Trusts and Charitable Gift Annuities

Charitable remainder trusts and charitable gift annuities provide you with a lifetime annual income stream, a portion of which may be tax-free in exchange for your contribution, as well as a charitable income-tax deduction.

Charitable remainder unitrusts provide a variable annual income. Payment is based on a fixed percentage of the net fair market value of the trust assets as valued each year. The Purdue Research Foundation can act as trustee. The minimum amount required to establish a charitable remainder unitrust is $50,000.

Tax Implications

  • Beneficiary is taxed on income received (ordinary income or capital gain)

Benefits

  • Tax deduction is based on the value of the assets transferred to fund the unitrust
  • Avoidance of capital gains tax

A charitable gift annuity is an agreement under which Purdue agrees to pay you or other beneficiaries a fixed income for life in exchange for a gift of cash, marketable securities, or approved real estate. The minimum donation required to fund a charitable gift annuity is $5,000. The annuity rate is based on your age and/or the age of other beneficiaries. Charitable gift annuities are issued through the Purdue Research Foundation.

Tax Implications

  • A portion of the annuity payment initially is tax-free
  • A portion may be taxed as capital gain if funded with appreciated property
  • The balance of the payment is taxed as ordinary income

Benefits

  • Fixed annual income for life
  • Tax deduction based on the value of the assets and annuity rate
  • Reduced capital gains tax

Deferred or Planned Gifts

Deferred or planned gifts, such as bequests, life-insurance gifts, gifts of real estate, and irrevocable trusts, enable you to support the college, school, or program of your choice through your estate plan.

As with outright gifts, any of these contributions may be designated for a particular purpose or undesignated. Undesignated gifts provide the School of Mechanical Engineering with the flexibility to meet our highest priorities. Gifts that are not designated for a specific purpose (unrestricted gifts) are critically important because they allow the School to respond quickly and positively to needs as they arise. Unrestricted funds can mean the difference between a missed opportunity and a breakthrough discovery, improved student learning, or a new experience significantly impacting our students.