Endowments
A Never-Ending Legacy
Throughout our lifetime, most of us strive to make a difference in the lives of others, providing gifts to the people and causes we value. Wouldn’t it be nice to know that you could continue to change lives even after you are gone, creating a legacy of support for the causes most important to you? By creating an endowment with the University of Nebraska Foundation, you can give a gift that lasts forever.
How It Works
You give cash, securities or other assets to the University of Nebraska Foundation for a new or existing endowment.
Determine if your endowment will fund a specific program or service, or be given without restrictions — allowing campus to direct the funds to the most critical needs.
We use a small portion of the fund to support our mission, and the balance remains invested to perpetuate the endowment.
Tip: You can use an endowment gift to honor someone important to you who appreciates the University of Nebraska. Consider designating your endowment in his or her name as a way to celebrate them.
A Quick Example
Sam wants to support the University of Nebraska by writing a check for $5,000 to the foundation each year. Sam qualifies for a $5,000 federal income tax charitable deduction (when itemizing taxes) each year the gift is made.
Sam would also like to leave a legacy and makes a generous estate gift of $125,000 to establish a new endowment at the University of Nebraska Foundation. This is the amount needed to ensure the University of Nebraska Foundation continues to receive the annual $5,000 into the future. (See chart.)
Sam is able to support the University of Nebraska's current needs with annual gifts during his lifetime. His estate gift will be invested with the endowment and a portion of the earnings will be used to support a need on campus he designates.
| If your annual gift is: | Amount needed to endow your gift forever*: |
|---|---|
| $2,500 | $62,500 |
| $5,000 | $125,000 |
| $10,000 | $250,000 |
| $20,000 | $500,000 |
| *At a 4.25% endowment spending level, 25 times an annual gift amount equals a perpetual gift. | |
4 Key Steps to
Creating an Endowed Gift
- Put It in Writing
If you are creating an endowment through your will or living trust and want it to be for a specific purpose, in most cases, you must explicitly state this. If you are establishing one during your lifetime, the University of Nebraska Foundation will work with you to outline how you want it to be used. - Determine the Amount Needed
If you are creating an endowment today, the University of Nebraska Foundation can inform you of the minimum amount required. If you intend to create one through your estate, the University of Nebraska Foundation recommends you specify a set amount in your will or living trust, then include a provision directing your executor or personal representative to distribute more funds if needed, should minimums change. - Include Safety Language
Nationwide, millions of dollars directed to specific purposes sit idle in bank accounts because the funds are no longer needed. We encourage you to include a statement that allows the University of Nebraska Foundation to redistribute the funds to another area if the original purpose is no longer necessary. - Lean on the University of Nebraska Foundation for Help
We respect the personal nature of these decisions and have experience with the sensitive issues involved. the University of Nebraska Foundation would be glad to consult with you to help ensure that your wishes are satisfied.