Planned giving provides you with the options and opportunities to include support of Purdue Calumet in your overall financial and estate plans. Planned gifts generally are gifts or commitments made in the present with the benefit to Purdue Calumet "deferred" until a future date. However, planned gifts may include outright gifts of appreciated property (securities and real estate) or gifts of tangible personal property.
Purdue recognizes individuals who have made a commitment to the future of Purdue Calumet through planned gifts, regardless of the amount, with membership in the R.B. Stewart Society. Cumulative outright and planned gifts or pledges of $100,000 or more qualify you for lifetime membership in the Chancellor's Council.
Bargain Sale
In this type of gift, the donor and the Purdue Research Foundation enter into a written agreement setting the terms of the sale. The donor transfers assets to the Purdue Research Foundation and receives a lump sum or installment payment of the sales price.
Taxation: The donor is taxed on sale proceeds (capital gains)
Benefits: Tax deduction based on value of property and sales prices. Avoidance of capital gains tax on gift portion.
Bequest
Perhaps the most common planned giving arrangement for the benefit of Purdue University Calumet is the will bequest. Charitable gifts made by will are 100 per cent tax deductible. As with current gifts, bequests may be designated either as unrestricted, giving the University the most flexibility, or restricted; that is, designated for a specific purpose. If you wish to include an unrestricted bequest to Purdue Calumet in your will, the following language is suggested:
"I give, devise, and bequeath to the Purdue Research Foundation, Inc. ______ percent of all the rest, residue, and remainder of my estate (or _______ dollars, property, securities, etc. described below) wheresoever located to be used for the benefit of Purdue University Calumet in such manner as the Chancellor thereof may direct."
If you wish to provide scholarships for undergraduates at Purdue University Calumet, here is suggested language for three options:
Scholarships Based on Financial Need
"I give, devise and bequeath to The Purdue Foundation, Inc. _____ percent (___%) of all the rest, residue and remainder of my estate (or ___________ dollars, property, securities, etc., described below) wheresoever located, to be used for the benefit of Purdue University Calumet to support undergraduate scholarships as described below. If the principal amount received hereunder is sufficient under University guidelines to establish an endowed scholarship, then The Purdue Foundation, Inc. shall transfer the principal amount, which shall constitute a fund to be known as the (insert name here) Scholarship, to Purdue University Calumet which shall use the principal to establish an endowment fund, with the revenue therefrom used for the establishment, support and maintenance of one or more annual scholarships, based on financial need, for undergraduates in the School of __________. The University's Division of Financial Aid will select the recipients. In the event this purpose can no longer be carried out due to changing conditions, or that such purpose is being met from other sources or is no longer necessary or desirable for the furtherance of the charitable and educational purposes of Purdue University Calumet at the time of the maturity of my estate or at any time thereafter, then I expressly authorize and empower the Chancellor of Purdue University Calumet to utilize my bequest for any purpose that may be deemed proper in his/her discretion, keeping in mind, however, my above-described purpose. The endowment fund for the purpose of investment may be combined with other funds of Purdue University Calumet."
Scholarships Based on Academic Merit
"I give, devise and bequeath to The Purdue Foundation, Inc. _____ percent (___%) of all the rest, residue and remainder of my estate (or ___________ dollars, property, securities, etc., described below) wheresoever located, to be used for the benefit of Purdue University Calumet to support undergraduate scholarships as described below. If the principal amount received hereunder is sufficient under University guidelines to establish an endowed scholarship, then The Purdue Foundation, Inc. shall transfer the principal amount, which shall constitute a fund to be known as the (insert name here) Scholarship, to Purdue University Calumet which shall use the principal to establish an endowment fund, with the revenue therefrom used for the establishment, support and maintenance of one or more annual scholarships, based on academic merit, for undergraduates in the School of __________. The School shall select the recipients with scholarship administration by the University's Division of Financial Aid. In the event this purpose can no longer be carried out due to changing conditions or that such purpose is being met from other sources or is no longer necessary or desirable for the furtherance of the charitable and educational purposes of Purdue University Calumet at the time of the maturity of my estate or at any time thereafter, then I expressly authorize and empower the Chancellor of Purdue University Calumet to utilize my bequest for any purpose that may be deemed proper in his/her discretion, keeping in mind, however, my above-described purpose. The endowment fund for the purpose of investment may be combined with other funds of Purdue University Calumet."
Scholarships With Neither Financial Need nor Academic Merit Specified
"I give, devise and bequeath to The Purdue Foundation, Inc. _____ percent (___%) of all the rest, residue and remainder of my estate (or ___________ dollars, property, securities, etc., described below) wheresoever located, to be used for the benefit of Purdue University Calumet to support undergraduate scholarships as described below. If the principal amount received hereunder is sufficient under University guidelines to establish an endowed scholarship, then The Purdue Foundation, Inc. shall transfer the principal amount, which shall constitute a fund to be known as the (insert name here) Scholarship, to Purdue University Calumet which shall use the principal to establish an endowment fund, with the revenue therefrom used for the establishment, support and maintenance of one or more annual scholarships for undergraduates in the School of __________. The scholarships will be administered in accordance with University policies. In the event this purpose can no longer be carried out due to changing conditions or that such purpose is being met from other sources or is no longer necessary or desirable for the furtherance of the charitable and educational purposes of Purdue University Calumet at the time of the maturity of my estate or at any time thereafter, then I expressly authorize and empower the Chancellor of Purdue University Calumet to utilize my bequest for any purpose that may be deemed proper in his/her discretion, keeping in mind, however, my above-described purpose. The endowment fund for the purpose of investment may be combined with other funds of Purdue University Calumet."
If you wish to restrict your bequest to a specific school or purpose, the Advancement Office will be happy to assist you or your advisors in obtaining appropriate language.
Taxation: Not applicable
Benefits: Distribution of estate as intended by donor. Avoidance of estate and inheritance taxes.
Charitable Gift Annuity
Under this gift option, Purdue Calumet and the donors enter into an agreement under which Purdue Calumet agrees to pay the donors or other beneficiaries a fixed income for life in exchange for a gift of cash, marketable securities or approved real estate. The minimum gift for a charitable gift annuity is $5,000. The annuity rate is based on the ages of the donors or other beneficiaries. Charitable gift annuities are issued through Purdue Research Foundation.
Taxation: Portion of the annuity payment initially is tax-free. Portion may be taxed as capital gain if funded with appreciated property. Balance of the payment is taxed as ordinary income.
Benefits: Tax deduction based on the value of the assets and annuity rate. Reduced capital gain tax.
Charitable Lead Trust
This arrangement provides Purdue Calumet with an income from the trust for a term of years, or for the lifetime of an individual. At the end of the payment period, the trust property reverts to the donor or, more commonly, passes to family members. The Purdue Research Foundation does not act as trustee on charitable lead trusts.
Benefit: Possible estate and gift tax saving
Charitable Remainder Annuity Trust
This type of trust is established when you irrevocably transfer money or securities to a trustee who invests the assets to pay an annual lifetime income to you or others chosen by you. At the end of the income beneficiaries' lives, the remaining trust assets are distributed to Purdue Calumet. When properly established, these trusts provide federal gift and estate tax savings.
Annuity trusts provide current tax benefits along with the security of a fixed, lifetime income. The agreed upon payments remain unchanged regardless of how the investments perform. Purdue Research Foundation can act as trustee. The minimum amount needed to establish a charitable remainder annuity trust is $50,000.
Taxation: The beneficiary is taxed on income received (ordinary income or capital gain).
Benefits: Tax deduction based on value of assets transferred. Avoidance of capital gains tax.
Charitable Remainder Unitrust
The unitrust is very similar to the annuity trust, except that the unitrust provides a variable income. Payment is based on a fixed percentage of the net fair market value of the trust assets as valued each year. A variation of this type of unitrust provides an annual income that is the lesser of the trust's net income or the fixed percentage amount. The Purdue Research Foundation can act as trustee. The minimum amount needed is $50,000.
Taxation: The beneficiary is taxed on income received (ordinary income or capital gain).
Benefits: Tax deduction based on value of assets transferred. Avoidance of capital gains tax.
Life Estate Gift
If you are considering a gift of your residence or farm to Purdue Calumet, but wish to live there during your lifetime, a gift of the real estate with a retained life interest is one solution. Transferring the property to Purdue Research Foundation, while reserving a life estate for you and/or another person, provides you with a current federal income tax charitable deduction. The deduction equals the present value of Purdue Calumet's remainder interest. This gift also permits you to avoid any potential capital gains tax on the built-in appreciation.
Taxation: The beneficiary is taxed on income, if any.
Benefits: Tax deduction based on value of property. Avoidance of capital gains tax.
Life Insurance
A planned gift to Purdue Calumet may be made through a gift of life insurance. For the gift to be tax deductible, Purdue University Calumet must be the owner and beneficiary. Policies may be new, have premiums remaining to be paid, or be a fully paid policy that you have owned for years. If premiums remain to be paid on a policy for which Purdue Calumet is the owner and beneficiary, the payment will be a deductible contribution. Purdue Calumet could also be named as the beneficiary of a policy that it does not own. This provision will not provide any current tax advantages, but the money passing to Purdue Calumet at the insured's death will qualify for the federal estate tax charitable deduction.
Taxation: Not applicable
Benefits: Tax deduction for premiums paid by donor. Avoid estate taxes and probate costs.
Pooled Income Fund
In this life-income arrangement, your irrevocable gifts are combined with those of others in the Purdue Research Foundation's Pooled Income Fund. As an income beneficiary, you will receive your proportionate share of the Fund's net income. The annual income received is based on your investment in the fund and varies with the actual earnings of the Fund. The Fund allows you to participate in a life-income plan with smaller initial gifts. The minimum amount needed is $1,000.
Taxation: The beneficiary is taxed on income received.
Benefits: Tax deduction based on value of assets transferred. Avoidance of capital gains tax.
Retirement Plan Beneficiary
Naming Purdue Calumet as the beneficiary of a qualified retirement plan is becoming an increasingly popular way to give. Because of the way qualified plans are taxed, at your death relatively little of the assets in the plan may end up in the hands of family members or beneficiaries. These assets not only are included in your gross estate for federal estate tax purposes, but are also taxed when received by the beneficiaries as income with respect to a decedent.
Funding a charitable gift to Purdue Calumet with these assets generates an estate tax charitable deduction. Further, Purdue Calumet will not have to pay income tax on the assets when they are received. So, using plan assets for a gift to Purdue Calumet and other assets for family members can be beneficial to all.
Revocable Living Trust Provision
Another popular way to make a gift to Purdue Calumet is to include it as a beneficiary of a revocable, living trust. If you wish to include Purdue Calumet in your living trust, please contact the Advancement Office for suggested language.
Taxation: The beneficiary taxed on income received
Benefits: Principal available to donor upon demand. Estate tax deduction.
For further information, please contact the Advancement Office at (219) 989-2314 or (800) HI-PURDUE, ext. 2314; or e-mail advance@calumet.purdue.edu.
