Ways to Give

Types of Gifts

Endowments. An endowment is a permanent fund that supports a specific purpose. Your gift's principal is invested and grows over time. The most common endowments are established to support MatSE students (scholarships, fellowships) and professors (chairs, professorships).

Scholarships. Scholarships help to create opportunities for students, ease their financial burden, and reward academic excellence.

Fellowships. Fellowships help MatSE attract the best graduate students in the nation.

Chairs, Professorships, Faculty Scholars. Financial support in the form of endowed faculty positions helps MatSE attract and retain outstanding faculty.

Sponsorships. Sponsorships help companies gain exposure on campus and enhance the educational experience in MatSE.

Program Support. You may choose to support a specific program such as the high school teachers workshop or a lecture series.

Ways of Giving

Pledge. Pledges allow donors to make a gift to MatSE with the option of paying over the course of several years.

Securities. Common and preferred stocks, bonds, mutual funds and other appreciated securities may be donated to MatSE through the University of Illinois Foundation. In addition to providing immediate benefit to the department as a current gift, securities may also be part of the planned giving process, depending on the donor’s wishes and financial objectives. A popular benefit of such a gift beyond the charitable income tax deduction is the avoidance, in most cases, of capital gains tax on the appreciation. Regardless of your income bracket, it is almost always to your advantage to transfer appreciated securities to the Foundation directly, rather than selling them and giving cash.

Bequests. Bequests are the most common form of planned giving and are gifts made through a will or living trust. The MatSE Department via a non-profit entity, the University of Illinois Foundation, can be named beneficiary in the wills and living trusts of alumni and friends. Bequests may be stated as a percentage of the estate, as the residual of the estate or for a specific dollar amount. Since a will can be changed, no income tax benefits are associated with a bequest; however, the donor’s estate is reduced by the amount of the bequest for estate tax purposes.

Retirement Plan Assets. Except for individuals 70 or older, under current tax law, retirement accounts cannot be transferred directly to a charity during one’s lifetime without reporting the distribution as income. The charitable income tax deduction that results from a lifetime transfer of retirement assets will typically offset the income tax incurred. Nonetheless, a donor can name MatSE as primary beneficiary of the account with the value being fully deductible for estate tax purposes. Furthermore, income taxes on the assets are also avoided since the University of Illinois Foundation is a tax-exempt entity.

Life Insurance. Life insurance can become a gift of much greater value than the actual money expended when the policy is given to the University of Illinois Foundation, naming the MatSE Department as the beneficiary.

Charitable Gift Annuities. The charitable gift annuity is not a trust, but is a contract between the University of Illinois Foundation and the donor whereby the Foundation promises to pay a fixed annuity to a maximum of two beneficiaries (beginning immediately or deferred to a later date) in exchange for the irrevocable transfer of assets by the donor to the Foundation. Annuity payments are based on the initial market value of the assets contributed and the ages of the income beneficiaries. A portion of the annuity payment may be considered a tax-free return of principal. An income tax deduction is allowed for a portion of the total gift value, and capital gains tax is also avoided. The charitable gift annuity is very popular due to its simplicity and effectiveness in providing immediate income tax deductions with a high level of tax advantaged income. The $5,000 minimum gift amount is also attractive to many donors.

Charitable Trusts. Testamentary trusts are simply arrangements for loved ones established with language in your estate plan document (will or living trust). Upon your demise, the trust is initiated as set forth in your estate plan document. Testamentary charitable remainder trusts are often used to provide income to a donor’s survivors. If so, the trust principal would pass to the MatSE Department after the income recipient’s lifetime, or after a term of years, as determined by the donor ahead of time. Multiple beneficiaries, and even multiple generations, in most cases, can benefit from such an arrangement. Your estate receives a valuable tax deduction since the trust assets ultimately pass to MatSE after your beneficiaries are provided for.

Gifts of Property. There are two major forms of property: real and personal. Real property is simply real estate — a home, farm, or other land. Personal property includes cash, securities, art, patents, copyrights, and any other item that has a determinable value. According to the Internal Revenue Service, services do not have a determinable value and they may not be deducted as a charitable contribution. Donors may contribute real estate such as their residence, vacation home, farm, ranch, commercial property or undeveloped land to MatSE via the University of Illinois Foundation. Usually, the Foundation will accept gifts of real estate if there are no restrictions placed on selling the property. Real property can be donated to the Foundation as a current gift by a warranty deed. Real property may also be part of the planned giving process. The donation is equal to the property's fair market value, which must be established by an independent appraisal.

IRA Contributions. Whether you have considered establishing a student scholarship, a faculty research fund, providing an annual fund gift or providing programmatic support, using a tax-free IRA charitable rollover may be a way for you to easily make this gift a reality. Like many individuals, you may have reached a point where your annual IRA distribution provides you more income than you need. The IRA charitable rollover is a convenient way to provide the MatSE Department an important gift while not increasing your taxable income. You can simply contact your IRA custodian and request that an amount be transferred to your alma mater. Perhaps you regularly make cash gifts up to the Federal limit. With an IRA charitable rollover gift, you can transfer excess funds from your IRA to MatSE and still make your regular cash gifts up to the Federal limit. You can make that one-time special gift without paying more in taxes. Or, like many individuals, your IRA may be the largest asset in your estate. Your CPA may save you taxes by suggesting you make annual IRA charitable rollover gifts of up to $100,000.

University of Illinois Foundation