Gift Planning

You may choose from a variety of ways to make a gift to the University of Indianapolis to accomplish both your financial and philanthropic goals. This information is general. Since your financial situation is unique, you should consult with your financial advisor or attorney. To discuss additional information, please contact Andy Kocher at 317-788-3493 or akocher@uindy.edu.

Donors participating in one of our planned giving programs will receive special recognition in our I. Lynd Esch Society.

Gifts by Bequest

The most popular deferred gift is the charitable bequest. A bequest can be made with any fixed amount or percentage of your estate. All bequests, small or large, can have a significant impact on our programs and for our students.

When you make a charitable bequest, you retain full use of your property during life. There is no disruption of your lifestyle, and there are no immediate out-of-pocket costs. You simply direct that percentage or fixed amount to UIndy. That's one reason it is so important that you have a will. A will gives you the opportunity to direct the use of your "social capital" through bequests; without a will, the state may make that decision for you.

Life-Income Gift Plans

While outright gifts of property often generate maximum tax benefits, they are not always feasible. Fortunately, there are life income plans that will allow you to make a gift to UIndy, earn income for you or your loved ones, and reduce taxes.

The idea of a life income gift plan is quite simple. You make an irrevocable gift of cash or securities. In return, you receive an income stream for life or a term of up to 20 years. The remaining principal will ultimately pass to UIndy at death, or when your personal benefits end.

Charitable Gift Annuities

One of our most popular life income gift plans is the charitable gift annuity. This is an agreement between you and UIndy under which you transfer cash or property to us in exchange for a charitable deduction and fixed payments for your life (or the life of another). The payout rate is based on the age of the annuitant(s).

Deferred Gift Annuities

Donors who want to supplement their retirement income may be interested in the deferred gift annuity. You receive an income tax deduction in the year you make the gift but defer annuity payments until a later time, usually at retirement. Both the deduction and annuity payments will be higher than with a regular gift annuity. Moreover, you can take the deduction and reduce your taxes now during your high-income years and receive the income when, presumably, you will be in a lower bracket.

Charitable Trusts

If you are thinking about making a larger gift, you may want to consider the charitable remainder trust. You can arrange for it to pay either a fixed or variable income for a term of up to 20 years. Because it is an excellent tool for unlocking highly-appreciated, low-yielding securities, it has become a favorite among philanthropists and their financial planning professionals.

Gifts of Retirement Plan Assets

One of the latest creative planning ideas to come of age is the use of retirement plan assets to fund major charitable gifts. This is because of the growth in the value of many plans and their adverse tax consequences. Unused retirement plan assets are "tax cursed" in that they are subject to both estate taxes and income taxes when received by beneficiaries. Thus, as much as 70 percent of these assets may be lost to taxation. Suggestion: A good "rule of thumb" is to provide taxable assets to UIndy and non-taxable assets to heirs.

A better strategy for individuals who want to include UIndy in their plans may be to make the charitable gift from retirement plan assets and make a bequest of other assets to family members. This allows your beneficiaries to receive more (they avoid the income tax liability, plus they receive a stepped-up basis on the bequeathed assets), and UIndy receives the full benefit of the gifted retirement plan assets without any depletion by taxes.

Gifts of Real Estate

Many types of real estate may be donated. "Property" means a personal residence, farm, vacation home, commercial building, or an undeveloped parcel of land. Gifts of real estate can be made outright, placed in a charitable remainder unitrust or given with a retained right to live on the property for one's lifetime. When you give long-term, appreciated real estate, capital gains taxes are completely avoided and the full, fair-market value of the property is deductible as a charitable contribution.

Gifts by a Life Estate Plan for a Residence or Farm

A special provision of the tax law allows an immediate income tax charitable deduction for a gift of a remainder interest in your home or farm. You retain an absolute right to occupy the home or farm for your life (or you may give family members this right). The property passes to us only after termination of the life estates.

Art, Collections and other personal property

Gifts of artwork, usable classroom materials, library books, and athletic equipment are sometimes donated. If you have an item you think the University could use, please contact Andy Kocher at 317-788-3493.