The Planned Giving Society of the University of Southern Indiana Foundation
Nestled in the heart of the University campus, Reflection Lake resonates light and life from a single drop of rain, a ray of sunshine, or a skipping stone. Inspired by the impact a solitary gift can make, the USI Foundation selected Reflections as the name for its Planned Giving Society.
Reflections is a special recognition program formed in 1995 to honor individuals who develop an estate plan or other deferred gift arrangement that will ultimately benefit the University of Southern Indiana. Its three primary objectives are:
- To recognize individuals who have taken important steps toward developing a gift plan for USI.
- To increase awareness of the personal benefits of charitable gift planning.
- To encourage all alumni and friends to consider a meaningful gift for USI.
Nearly everyone who believes in USI can complete a gift plan to benefit the University. These gifts, regardless of size, are vital to the University’s future.
Members of Reflections receive:
- Recognition of their generosity toward USI by including their names in publications such as the annual Honor Roll of Donors and
- Invitation to the annual Reflections social event for members.
- A memento of the Reflections planned giving society.
Some of the potential advantages of individuals completing a gift plan include:
- The personal satisfaction of committing a gift to USI during their lifetime, with the peace of mind that their resources will be available to them for as long as they need them.
- Significant savings on income taxes.
- Reduced gift and estate taxes, while still benefitting loved ones.
- Avoidance of capital gains tax on appreciated gift assets.
- An attractive income from the gift assets for their retirement years without the day-to-day responsibilities of investment management.
- A secure life income for a spouse or other loved one before completing their gift to USI.
Individuals who notify the USI Foundation that they have a gift plan in place for the University of Southern Indiana are welcomed as members of Reflections. These gift plans should specify that the USI Foundation will receive the gift on behalf of the University of Southern Indiana.
- A deferred gift provision of any amount qualifies an induvial for membership in Reflections, and ones anonymity can be assured, if desired.
- Deferred gifts may be unrestricted for the broad benefit of the University or designated for any University program.
"USI is a great piece of
our community; it’s growing; it’s
placing graduates in roles within our
community; it needs support from
alumni. Our gift will allow continued
growth and change.”
-Drew'04 and Carrie '06 Rice, Reflections Members
Although the University of Southern Indiana is a state-assisted University, it receives less than 50 percent of its operating funds from state appropriations. Much of the balance of resources needed to enhance the educational mission of University must come from gifts, grants, and bequests.
Individuals may join Reflections through a gift that is formally planned today to help ensure a bright future for the University of Southern Indiana and its students.
Examples of gift plans are listed below.
A gift by will is the easiest and most popular way to support the University of Southern Indiana without parting with assets during an individual’s lifetime. Gifts can take several forms: specific bequests of property, bequests of stated dollar amount, bequests of a percentage of an estate, or bequests of the remainder of the estate after individuals have provided for their loved ones.
Important estate tax savings can result from such contributions since bequests to the USI Foundation may be deducted entirely from the taxable estate in determining estate taxes. Often such bequests will place the estate in a lower tax bracket.
Several USI alumni and friends have found life insurance to be the least costly and the most flexible deferred gift available. By purchasing a life insurance policy that names the University of Southern Indiana Foundation as the owner and beneficiary, individuals receive a charitable gift deduction for each premium payment. By donating an existing, paid-up life insurance policy, a donor receives a charitable gift deduction approximately equal to the cash surrender value.
For individuals who prefer the certainty of a fixed income amount paid on a predetermined schedule for life, an annuity may be the best choice. The rate paid is determined at the time the gift is made and is based on the annuitant’s age.
Annuity assets are commingled with the USI Foundation endowment, and the program is backed by the total assets of the University. Payments are generally made each quarter, and a portion of each payment received is a tax free.
Gift annuities generate an immediate charitable income tax deduction. A substantial portion of capital gains is eliminated and the balance can be spread over the donor’s life expectancy.
Deferred payments also are available for individuals at any age who want an immediate federal income tax deduction but do not need to income at the present time. A deferred-payment gift annuity pays a higher rate of return due to the deferral of payments.
The most recent gift annuities rates can be found here.
A charitable remainder trust provides a donor with the flexibility to designate a gift for the University of Southern Indiana today, to retain an attractive income during their lifetime or the lifetime of another, and to secure an immediate federal income tax deduction for the gift.
The gift asset is transferred into a trust, which then pays a specified income to the donor or family member(s) during their lives before distributing the trust assets to benefit the University. The trust department of the bank often serves as the trustee, offering both trust (fixed income) or unitrust (variable income). Or, if the individual prefers, the USI Foundation may serve as trustee, providing responsible management services.
The transfer of long-term appreciated property such a securities or real estate to a charitable remainder trust avoids capital gains tax at the time the gift is made. Gains on sales made by the trustee also are not taxed to the trust. Income to the beneficiary is taxed preliminary at the rates of ordinary income.
Charitable lead trusts can effectively produce dramatic gift and estate tax savings for individuals and their families or other heirs, while preserving important family assets. Under these trusts, income from your income-producing assets, such as cash or securities, goes to the USI Foundation for a fixed period of years. At the end of the specified period of time, the assets are returned to the donor or other named beneficiaries.
The gift of a residence, farm or vacation home can be made today without giving up the use and enjoyment of the property during the donor’s lifetime.
This type of gift is easy to complete and generates a significant federal income tax deduction. The donor and spouse or other family members may continue to live in, maintain, and enjoy the property as long as they wish. Upon the death of the last beneficiary, the property will transfer to the USI Foundation.
Tangible personal property such as art, music or library collections can be valuable assets for giving. Not only does the donor have the satisfaction of sharing their collections, but they will receive valuable tax benefits as well. If the gift is of long-term personal property (property which has been owned for more than one year) and is related to a purpose or function of the University, individuals are entitled to a federal income tax deduction for the full fair marker value of the property at the time it is transferred. Generally, “related use” means the gift must be used by the University and not sold at the time of the gift.
If a donor donates short-term personal property which has been owned for less than one year, they will receive a federal income tax deduction only for the cost of the property regardless of its present fair market value.
Members of Reflections carry the legacy of those who have gone before and pass that heritage to those who will follow.
Individuals are encouraged to remember the University of Southern Indiana through the deferred gift method most appropriate for their circumstances and to join other dedicated USI alumni and friends in the planned giving society, Reflections.
Your contribution demonstrates you share today in the continuing success story of the University of Southern Indiana and in the vision of its bright future.
For additional information, please contact:
University of Southern Indian
8600 University Boulevard
Evansville, Indiana 47712