University of Tennessee Foundation - Donor Booklet

Giving Back

As you consider giving to the University of Tennessee, I ask you to reflect on your own unique stories and experiences that brought about the desire to give back.

Maybe it was your time as a student and a pivotal moment you had in a classroom that changed the trajectory of your life. Perhaps you witnessed the strength of your community flour ish through a UT-led initiative or personally felt the impact of life-changing research and innovation.

Your story fuels your generosity, and your generosity helps cre ate transformational stories for future generations. Within these pages you will find a variety of ways that you can invest and impact the University of Tennessee, changing stories well into the future. The choice of where you give and how you give is up to you. The opportunities across our campuses and institutes are boundless.

The passion behind your commitment enables the University of Tennessee to provide an unparalleled education and impacts the residents of Tennessee and beyond through innovation and service.

Our deepest gratitude to you for helping rewrite stories of our students, faculty and programs across the state.

Kerry Witcher President, UT Foundation

Stories can be captivating and compelling… and your stories uniquely belong to you.

University of Tennessee Foundation, Inc.

The University of Tennessee Foundation, Inc. (UTFI) is an interdependent not-for-profit 501(c)3 created in 2001. From inception, the Foundation was passive in fundraising efforts. However, in 2009, the University of Tennessee Board of Trustees appointed a Foundation Study committee to research the structure and impact of foundations at peer institutions.

The committee learned that most of UT’s peer and aspirational institutions operated their advancement function as part of a foundation, and had nearly double the number of advancement staff as UT. This independence enabled the institutions to maintain or enhance investment in their advancement function and increasing philanthropic support during economic downturns.

The review of the peer institutions directly illustrated that by changing the UT Foundation into a proactive organization, it could have a very signifi cant impact on the financial resource base. In the fall of 2010, the Founda tion Study committee presented its findings to the UT Board of Trustees, which approved the UT Foundation plan, its affiliation agreement and pro forma, pending legislative approval, which it received in 2011.

The agreement set forth the relationship and commitment between the University and the Foundation, and defined internal controls. UTFI became the preferred channel for all private contributions benefitting the Universi ty of Tennessee. Currently, the UT Foundation has nearly 250 team members centrally and throughout the campuses and institutes of the University of Tennessee System. Staff members work with alumni and prospective donors to se cure funds for scholarships, professorships, research, outreach programs and other university initiatives. Fiscal year 2021 yielded $232.8 million in gift commitments from 66,672 donors and over 239,000 engaged alumni.

UTFI BOARD OF DIRECTORS

The University of Tennessee Foundation Board of Directors serves as the fiduciary and corporate board to administer the university’s fundraising and alumni programs. The Board assists in raising support publicly, politi cally and financially for the University of Tennessee System.

UTFI requires each director to be a proven, valuable volunteer and sup porter of the University through contributions of time, talent and treasure. Each director shall fulfill his or her duties, including those as a commit tee member, in good faith, with appropriate care and concern, and in a manner believed to be in the best interest of the UT Foundation and the University of Tennessee.

The mission of UTFI is to raise financial, public and political support for the University of Tennessee.

Through its mission to serve all Tennesseans and beyond through education, discovery and outreach, UT is preparing the next genera tion of problem solvers, innovators and connectors who will tackle the world’s grand challenges. Your philanthropic spirit creates pathways and opens doors for those students to an unparalleled educational experience through enhanced programs and worldclass faculty.

Find the area of the University that ignites your passion. You can designate your gift to any cam pus, college, program, institute, or across multiple areas throughout the UT System. Every gift, regard less of size, leaves a lasting impact as it sparks aspirations throughout the UT System.

1. CASH GIFTS

Cash gifts provide an immediate impact on the program or area you designate and are one of the most common means of giving. Gifts made through currency, money orders, checks, credit cards and electronic transfer are considered cash gifts.

Your employer may provide a way to double or triple your impact through a matching gift benefit. Check with your human resources office to find out more information about your employer’s process.

Gifts can be mailed to the central office: UT Foundation 1525 University Ave. Knoxville, TN 37921

To make your gift online using a credit card, please visit utfi.org/giving

2. STOCKS AND SECURITIES

To make your gift through direct deposit or wire transfer, please contact wires@utfi.org

Gifts of appreciated stocks, bonds or mutual fund shares can be a tax efficient way of giving for a donor. As with cash gifts, the sup port is immediate and you may direct your gift to a specific cam pus, college, program or institute.

Gifts of publicly traded stock or other securities are received elec tronically through our broker, BNY Mellon. Your broker initiates the transfer, and a receipt will be issued by the UT Foundation when the gift is posted.

Please provide the following information to your broker for gifts of securities to the UT Foundation:

DTC Eligible Securities

DTC number: 0443 Pershing, LLC

For credit to account number: N7M002366

Client account name: The University of Tennessee Foundation

Please send the following information to your development officer or stock@utfi.org:

Name(s)

Address or other contact information that needs to be updated, if applicable

Name of security and number of shares to be transferred

Purpose of the gift or the specific account name or allocation

Gifts of closely held securities must be approved in advance by UTFI’s Executive Committee. When considering gifts of closely held securities the committee shall consider any restrictions that might prevent converting the security to cash, marketability and potential for undesirable consequences to UTFI.

3. REAL ESTATE

Real estate gifts are an opportunity to make a significant impact to the university, and may provide you with a charitable income-tax deduction. A gift of real estate can provide scholarship support, en dow a faculty position, assist with the construction of new facilities and provide program enhancements. If you are interested in mak ing a gift of real estate, consider residences, vacation homes, farms, commercial buildings or undeveloped land. You can give real estate in a variety of ways, including an outright gift, in a will or through a retained life estate.

4. MEMORIAL AND HONORARY FUNDS

Honor a special person through a memorial or honorary fund. This type of gift creates a personal tribute and helps leave a legacy at the University. The Foundation will send an acknowledgement to the honoree or family of the deceased to notify them of your thoughtful gift.

A memorial or honorary fund may be established as an endowment or as a current fund. Endowed memorial and endowed honorary funds must comply with established endowment minimums.

5. PLANNED GIFTS

Planned gifts ensure your support for the University continues, and helps secure its mission long into the fu ture. Through your generosity, planned gifts often provide exceptional financial and tax benefits. Discover the ways you can leave your legacy.

a. Bequests

Including a gift in your will or trust, known as a charitable bequest, is a meaningful way to support the University of Tennessee. Gifts of any size benefit our students, faculty and programs, and help sus tain and strengthen the Univer sity for many years to come.

b. Charitable Gift Annuity

A charitable gift annuity is a simple way to support the Un versity through a gift of cash or publicly traded securities. Through this gift, the UT Foun dation agrees to pay a fixed amount each year for the rest of your life.

c. Charitable Remainder Trusts

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceed ing 20 years from assets you give to the trust you create. It is an excellent gift option for donors who wish to support the University of Tennessee while retaining income for themselves or others.

d. Charitable Lead Trusts

A charitable lead trust pro vides the tax benefits from philanthropic support of the University, without giving up the assets that you want your family to receive someday. A charitable lead trust pays a fixed amount each year to UT and is more attractive when interest rates are low, and a charitable lead unitrust pays a variable amount each year based on the value of the as sets in the trust.

e. Retirement Plans and Life Insurance

Donors can name the Univer sity as a beneficiary of their retirement accounts or life insurance as a simple way to support UT.

f. IRA Charitable Rollover

For donors 70½ years old and older, you may give any amount up to $100,000 per year from your IRA directly to a qualified charity without having to pay income taxes on the money. IRA rollovers im mediately impact the area you designate.

6. ENDOWMENTS

An endowment creates a perpetual source of funding, and is a powerful way to support students, faculty and programs. Endowment donations are invested and utilize the earnings to support the area you designate in perpetuity.

The minimum gift levels required to establish endowment funds are: • Undergraduate Scholarship: $25,000 • Graduate Fellowship: $250,000 • Professorship: $500,000 • Chair: $1,000,000

Endowments can be created with gifts of cash, securities and other assets, and minimum amounts can be pledged over a number of years.

You can add to your endowment, beyond the initial funding level, through lifetime gifts, bequests and beneficiary designations through life insurance or retirement plans.

Gifts to an endowment are immediately invested in the University of Tennessee Consolidated Investment Pool.

The year-to-year change in the value of an individual endowment fund is affected by several factors, including the amount and timing of additional gifts to the fund, market gains and losses and the amount of disbursements to support the fund’s designated programs.

The fund’s principal remains intact, with a predetermined portion of the income earned used to support your designation. Any remaining earnings are reinvested to continue generating growth of your endowment. Restricted funds are managed at the campus level.

If you are interested in funding an endowment, talk to your development officer or call the UT Foundation at (865) 974-2115.

Investment Strategy

The University of Tennessee Investment Office oversees the investment strategy for the Consolidated Investment Pool. Its primary objective is to achieve an annualized return great er than the rate of inflation plus spending, while managing risk through a full-market cycle. To that end, it has implemented a disciplined strategy that incorporates both active and pas sive management, depending on the target market or manager strategy. The University works with an outside consultant to find managers that possess a reputable strategy, solid invest ment culture and emphasis on risk management. This approach, implemented under an active governance structure, enables the University to maintain a long-term, strategic focus and avoid the distractions of short-term market movements. Risk and perfor mance are monitored on an ongoing basis.

The university’s endowment takes a long-term approach to investing.

Gift Agreements

All gifts and pledges of $25,000 or more must be documented in a written Gift Agreement signed by the donor(s) and the UTFI President. Exceptions include:

Charitable Remainder & Lead Trusts: If UTFI is provided with the original or a legible copy of the legal instrument creating charitable remainder and lead trusts then no additional written gift agreement is needed.

Charitable Annuities: The contract creating a charitable gift annuity suffices in lieu of a written gift agreement.

A signed pledge form may be used to add additional support/ gifts to endowments or non-endow ments that have already been estab lished and or named via an existing gift agreement.

In the absence of the UTFI president, the CFO is authorized to sign gift agreements. Gift agreement drafts are provided by the develop ment officer through the electronic gift agreement system.