Ways to Give
Purdue's School of Engineering is happy to work with you in determining the most beneficial arrangement for making a gift to Purdue. The general information in this Giving Guide is intended to help you make the decision that is right for you. Giving can, at times, seem complicated. This guide has been designed to simplify the process and provide you with information about tax benefits and your rights as a donor.
- Types of Gifts: A basic online description of all available giving options, ranging from cash gifts to charitable gift annuities.
- Tax Benefits: Information about the tax benefits of giving to Purdue Engineering.
- Donor Bill of Rights: A declaration of donor rights.
- Contact Us: Talk to our development staff to get started!
In addition to outright gifts of cash, stock, or property, you may want to consider these options:
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
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 $25,000.
- Beneficiary is taxed on income received (ordinary income or capital gain)
- Tax deduction is based on the value of the assets transferred to fund the unitrust
- Avoidance of capital gains tax
Charitable Gift Annuity
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.
- 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
- 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.
Corporate Matching Gifts
You can double or even triple the value of your contribution by taking advantage of your employer's matching-gift program. Simply consult your personnel or college relations office to obtain a matching-gift form and to find out the details of your employer's program. Then enclose the completed form with your contribution and your employer's matching gift.
If you don't know whether or not your company has a matching gift policy, the University Development Office has a simple online form that will tell you if your employer is eligible.
Giving to the College of Engineering can bring several tax advantages, although it is not our intention to provide legal, accounting, or other professional advice. The general information provided below is intended solely to help you make an informed decision about how or when to give.
State of Indiana College Tax Credit
Indiana taxpayers may take a tax credit of half (50 percent) their gift to the College of Engineering. For a joint return, the maximum credit is $200 (based on a gift of $400 or more), and for a single return, the maximum credit is $100 (for a gift of $200 or more). The tax credit directly reduces the "bottom line" of your state income tax by reducing the amount you owe in taxes. All it takes is your gift to the College of Engineering and one simple form, the Indiana CC-40.
Download the CC-40 form from the Indiana Department of Revenue Web site.
Federal Tax Advantages
Contributions to the College of Engineering are deductible as charitable contributions within the limits of the Internal Revenue Code.
Gift types are listed below with additional information on federal tax advantages:
Cash gifts are deductible up to 50 percent of adjusted gross income, with any carryover applied within five years.
Example: The net cost of a $1,000 cash gift to a donor in the 35 percent marginal tax bracket is only $650 after the $350 tax savings.
Personal Property (Gifts-in-Kind)
Gifts-in-kind (equipment, software, books, works of art, etc.) are deductible at the full fair-market value if they are related to educational programs or activities of the university and have been held for more than one year by the donor. Unrelated gifts-in-kind may also be made.
Gifts of Appreciated Property
With careful planning, charitable gifts of certain types of assets will provide even greater tax benefits to the donor than a gift of equivalent cash value.
Gifts of appreciated property (securities and real estate) held for more than one year are deductible up to 30 percent of adjusted gross income with no capital gains tax on the appreciation. The deduction is based on the fair market value of the donated property.
Gifts of appreciated property held for less than one year are deductible only up to the cost basis in the property, with a limit of 50 percent of adjusted gross income.
The charitable deduction for gifts of property that would yield ordinary income or short-term capital gain if sold is limited to the donor's tax basis (usually the original cost of the property). Gifts of appreciated property held long-term provide a double tax benefit.
The full fair-market value of gifts of long-term appreciated securities or real estate is deductible up to 30 percent of a donor's adjusted gross income. Any amount in excess of the 30 percent ceiling can be carried forward for up to five years.
Example: Mr. Albert, who is in the 28 percent income-tax bracket, owns securities currently valued at $22,000, which he purchased several years ago for $2,000. He contributes the securities to charity and realizes a $22,000 charitable deduction, which saves him $6,160 in income taxes (28 percent of $22,000).
In addition, Mr. Albert avoids the potential capital-gain tax on his $20,000 paper profit. This means a further savings of $3,000 (15 percent of $20,000). Thus, Mr. Alberts actual cost for the gift of $22,000 in appreciated securities is only $12,840 ($22,000, less $6,160, less $3,000).
Learn more about the tax advantages of donating to Purdue University.
Philanthropy is based on voluntary action for the common good. It is a tradition of giving and sharing that is central to the quality of life. To assure that philanthropy merits the respect and trust of the general public and that donors and prospective donors can have full confidence in the not-for-profit organizations and causes they are asked to support, it is declared that all donors have these rights.
- To be informed of the organization's mission, of the way the organization intends to use donated resources, and of its capacity to use donations effectively for their intended purposes.
- To be informed of the identity of those serving on the organization's governing board and to expect the board to exercise prudent judgment in its stewardship responsibilities.
- To have access to the organization's most recent financial statements.
- To be assured gifts will be used for the purposes for which they were given.
- To receive appropriate acknowledgment and recognition.
- To be assured that information about donations is handled with respect and with confidentiality to the extent provided by law.
- To expect that all relationships with individuals representing organizations of interest to the donor will be professional in nature.
- To be informed whether those seeking donations are volunteers or employees of the organization or hired solicitors.
- To have the opportunity for the donor's name to be deleted from mailing lists that an organization may intend to share.
- To feel free to ask questions when making a donation and to receive prompt, truthful, and forthright answers.
The text of this statement in its entirety was developed by the American Association of Fundraising Counsel (AAFRC), the Association for Healthcare Philanthropy (AHP), the Council for Advancement and Support of Education (CASE), and the Association of Fundraising Professionals (AFP).
Chief Development Officer