Inspired Giving Brochure

3 Steps to Grow Your Impact

UN L O C K TH E P OWE R OF CR E AT I V E P HI LANTHR O PY

NO MATTER WHERE YOU ARE IN YOUR LIFE, YOU CAN MAKE AN IMPACT.

INSPIRED GIVING

You’re a recent grad, just launching your career.

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You’ve given to the annual

You’ve had an

fund for years, but you’re

You are thrilled to see

entrepreneurial spirit from

retirement on the horizon but eager to get the

curious—could you get

the start—and now you

your alma mater but wish

even more involved in

have your own company.

it were more. It turns out

your giving? You don’t

It feels like the right time

away so you can focus on

your company matches

have to look far before

to make that first big

the fun. What starts as a

employees’ charitable

you realize there are many

contribution, but your

daunting puzzle actually

donations—and just like

options for designing your

wealth isn’t sitting in a

becomes a rewarding

that, you’ve doubled your

philanthropy.

savings account. Then

chance to create a

you learn that all kinds of

charitable legacy.

You’ve put aside a little for

impact.

financial planning squared

assets—business interests included—can be used to make a gift.

That’s the power of creative philanthropy—you have options.

And often you have the ability to do more than you ever thought possible.

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GEORGETOWN UNIVERSITY

You know that Georgetown’s leadership in higher education and power to create positive change depend greatly on the generosity of our donors.

That’s why so many of our alumni, parents, and friends give—to make possible everything we are and aspire to be.

But meaningful philanthropy isn’t just about why.

It’s also about when, what, and how.

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WHEN WHAT HOW

INSPIRED GIVING

WOULD YOU LIKE TO GIVE? Learn how you can give now, spread it out, or plan for the future. Page 4

COULD YOU GIVE? Explore the possibilities—from cash to stocks to IRAs, and everything in between. Page 6

COULD A GIFT FULFILL YOUR GOALS? Current use, endowed, or otherwise—design your philanthropy for meaningful impact. Page 10

For more information on the gift planning terms mentioned throughout this guide, please see the glossary on page 22.

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GEORGETOWN UNIVERSITY

WHEN

WOULD YOU LIKE TO GIVE?

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WHEN TO GIVE

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Some philanthropists want to make a singular impact; others punctuate their lives with gifts of various types and sizes. Consider when you’ll want to flex your philanthropic muscle.

GIVE NOW

Outright giving is essential to sustaining Georgetown’s momentum. Whether you’re writing a check, donating stock, or sharing a less-traditional asset, your gift will support the schools and programs that educate women and men to be reflective lifelong learners, to participate actively and responsibly in civic life, and to live generously in service to others.

SAMPLE PLANNED GIVING OPPORTUNITIES* Bequests through a will or trust Beneficiary designation on a retirement asset or life insurance policy

SPREAD IT OUT

Life-income gifts (see page 19)

ongoing giving at a comfortable level with cumulative benefit and impact.

annuity trusts

A multi-year pledge spread across up to five years can help you facilitate

Charitable lead, remainder, or

PLAN FOR THE FUTURE

*Some gift types may be subject to

Georgetown’s long-term ambition. Resourceful donors often find that the

the university.

Planned gifts are a powerful complement to outright giving and crucial to

a review and approval process at

flexibility of a planned gift enables them to make a bigger gift than they thought affordable while achieving their personal and philanthropic goals.

Early in your career? Planning for a lifetime of giving might seem premature, but the most forward-thinking philanthropists are starting young—and finding that the process is painless. Bequest intentions can be as simple as a few sentences, are non-binding, and don’t compromise your cash flow, all while creating a lasting impact at the university you love.

If you’ve included Georgetown in your estate plans, please let us know!

Understanding your goals in advance helps us ensure we use funds for a purpose that aligns with your interests. We’d love to celebrate your generosity. Email us at plannedgiving@georgetown.edu or call 800-347-8067.

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This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice.

Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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GEORGETOWN UNIVERSITY

W H AT

COULD YOU GIVE?

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W H AT T O G I V E

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Writing a check is always an option, but could you achieve much more through creative giving? Could appreciated securities enable you to finally endow a scholarship? Are those pre-IPO shares an overlooked chance to create your philanthropic legacy?

There are countless ways to shape your gift; start by understanding these options.* CASH

Did you know?

No surprises here. Make a gift by check, wire, or credit card—via the

If you have a donor-advised

web, mail, or phone.

fund, you can of course use it to

Giving from outside the United States? You may be able to significantly increase the value of your gift by taking advantage of charitable giving options specific to your region. Please visit giving.georgetown.edu for additional details.

fund direct gifts to Georgetown during your lifetime, but you can also make Georgetown a future beneficiary.

*Some gift types may be subject to a review and approval process at the university.

Increase your impact with a matching gift.

Don’t forget—many companies and foundations will match the value of charitable gifts made by employees and their spouses, as well as board members and retirees. Ask your employer’s benefits team if they offer a match—or seek assistance from a Georgetown giving specialist at 202-687-1690 or giving@georgetown.edu.

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice.

Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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GGE EO O RR GG E TE OT W ON WN U NUI V N EI V RE S IRTSYI T Y

CASH GIFT VS. STOCK GIFT EXAMPLE

$6,040 AMOUNT: $10,000

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$4,136 Net “cost” of your gift

$1,904 $3,960

$3,960

CASH GIFT

STOCK GIFT

Capital gain tax savings Charitable tax savings

STOCKS, BONDS, AND MUTUAL FUND SHARES

Donating appreciated securities is a powerful—and too often overlooked—way to give while offsetting your personal tax liability. In gifting stocks, bonds, or mutual fund shares that you have owned for longer than one year, you receive the same income tax savings associated with a cash gift and avoid tax on the capital gains built up in donated securities.

REAL ESTATE

Real estate can be a surprisingly flexible way to give. Whether you have a partial interest in—or complete ownership of—a principal residence or vacation home, a farm, a commercial building, a subdivision lot, or even unimproved land, you may have an untapped source of philanthropic support.

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W H AT T O G I V E

COMPLEX ASSETS

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Did you know?

You were creative in building your business, and now you’re able to be creative with your philanthropy. Careful planning can help you unlock the power of illiquid assets—restricted stock, hedge fund interests, pre-IPO shares, part-ownership in emerging ventures, and other closely held

If you are 70 ½ or older, you can direct up to $105,000 each year to charity from a qualified IRA. The distribution is tax-free and counts

business interests—to realize your philanthropic goals.

toward your annual required

RETIREMENT PLANS AND INSURANCE POLICIES

or older)—with the added bonus

Whether you’ve been saving for years or you’re just starting to build your nest egg, consider naming Georgetown as a beneficiary of a specific amount or percentage of your retirement account (e.g., IRA, SEP, 401(k), 403(b), ESOP).

Life insurance also may be an affordable way to realize your philanthropic ambitions. It’s possible to name Georgetown as the beneficiary of all/part

minimum distribution (if you are 73 of providing a gift to Georgetown.

Note: distributions must be sent directly to Georgetown from your IRA administrator.

Did you know?

of your life insurance policy.

Some gifts of personal property,

PERSONAL AND INTELLECTUAL PROPERTY

given with the understanding that

real estate, and other assets are

Could the rare books in your basement be used to complement Georgetown’s curriculum? A treasured asset may take on a whole new life in becoming a significant gift to Georgetown. Here are just a few of the inventive ways some donors create their philanthropic legacy: • Artwork

• Patents

• Boats

• Copyrights

• Collections

• Oil and gas royalty interests

the university will retain them; others are given with permission to sell some or all of the gift in the future with the proceeds used to benefit the donor’s area of interest at Georgetown. If you decide to make this type of gift to Georgetown, your wishes would be discussed in advance and committed to by the university as part of a binding gift agreement.

Our team has experience with a wide range of assets and would be pleased to help you explore the possibilities. Please get in touch at 800-347-8067 or plannedgiving@georgetown.edu.

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice.

Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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H OW

COULD A GIFT FULFILL YOUR GOALS?

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YOUR GOALS

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Philanthropy is about translating your success into support for the people and places important to you. The best giving strategies take a holistic view, providing outsized benefit to all involved, but are chosen in advance by the donor with an eye toward how you want to have an impact.

GIFTS WHERE YOU SEE IMMEDIATE IMPACT

Current-use gifts—directly expendable funds—allow Georgetown to say “yes” to good ideas now and ensure continued growth as a leading global university.

Current-use funding complements the endowment and can be especially beneficial for start-up or other innovative programs, faculty research projects, and hands-on learning opportunities. Kick-starting initiatives

“Ask Georgetown deans and directors what current-use funds allow them to be, and you’ll hear the same words again and again: nimble,

with the human and financial capital to build momentum and measure

agile, responsive, and

success enables Georgetown to develop sustainable programs with

innovative.”

lasting campus engagement.

–R. BARTLEY MOORE (F’87), VICE PRESIDENT FOR ADVANCEMENT

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice.

Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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GEORGETOWN UNIVERSITY

What is the Georgetown Fund?

Donors making a current-use gift may direct it to the Georgetown Fund

The Georgetown Fund is the

in support of undergraduate scholarships, the Athletics Excellence Fund,

through our Annual Giving

Ministry, or another area of interest. The distinct aspect of current-use

beneficiary of unrestricted gifts

the Medical Center Annual Fund, the Law Annual Fund, Mission and

program. If you do not designate

gifts is that they have full and immediate impact.

will automatically be assigned to

GIFTS THAT ALLOW YOU TO PROVIDE PERMANENT SUPPORT

otherwise, your current-use gifts the Georgetown Fund.

Georgetown directs 100% of

Georgetown Fund gifts to 1789

Scholarships for undergraduate

students. These scholarships are critical to fulfilling the university’s single highest philanthropic

priority: ensuring access and affordability for all admitted undergraduate students.

Endowment income is the principle source of dedicated, long-term

financial support for the university. It lends fiscal stability and enables the university to make dependable, long-term investments in highquality academic programs and top faculty, as well as to ensure that the brightest students have access to a Georgetown education.

In growing the endowment—key to our ability to compete against other elite educational institutions—endowment gifts also increase the potential for larger investment returns through the power of compound interest.

Nearly 40 years ago, George-

town made a transformational

decision to admit students on a

need-blind basis and to meet the full demonstrated financial need of all admitted undergraduates from the United States. This

commitment—a direct outgrowth of the centuries-old Jesuit tradi-

AREAS SUPPORTED BY GEORGETOWN’S ENDOWMENT* 37% Research 26% Professors 25% Student Aid

5% Facilities 3% Other 2% Libraries

1% Ministry 1% Athletics

*Corpus of pooled endowment, FY 2017 Source: Georgetown University Investment Office

tion of providing access to higher

education—propelled Georgetown into the competitive ranks of the

HYBRID GIFTS: A POWERFUL COMBINATION

Increasing the number of

their gift—or an additional annual gift—for current use, funding that can

philanthropy helps fulfill the

pledge payments to build up an endowed fund.

the best students to campus,

The example on the opposite page shows how a hybrid commitment of

while enabling Georgetown to

and begin providing direct scholarship support immediately—unlike a

keep the school competitive.

be awarded after the pledge is fulfilled.

nation’s leading universities.

scholarships funded through university’s commitment to bring

Some donors establishing endowments choose to commit a portion of be distributed immediately in support of their goals as they are making

regardless of their ability to pay,

$125,000, payable over five years, could establish a scholarship fund

seize additional opportunities to

straight $100,000 endowment gift, where the named scholarship would

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YOUR GOALS

STRAIGHT ENDOWMENT EXAMPLE YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Endowment Payment

$20,000

$20,000

$20,000

$20,000

$20,000

Total Endowment Payments

$20,000

$40,000

$60,000

$80,000

$100,000

Annual Endowment Income

$1,000

$2,000

$3,000

$4,000

$5,000

Scholarship Activity

Endowment income pooled in general scholarship fund.

TOTAL PAYMENTS

Named scholarship awarded in perpetuity once endowment fully funded.

$100,000

HYBRID EXAMPLE YEAR 1

YEAR 2

YEAR 3

YEAR 4

YEAR 5

Endowment Payment

$20,000

$20,000

$20,000

$20,000

$20,000

Current Use Payment

$5,000

$5,000

$5,000

$5,000

$5,000

Total Endowment Payments

$20,000

$40,000

$60,000

$80,000

$100,000

Annual Endowment Income

$1,000

$2,000

$3,000

$4,000

$5,000

Scholarship Activity

Named scholarship awarded immediately with current-use funds while endowment grows to $100,000 threshold.

TOTAL PAYMENTS

$125,000

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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GEORGETOWN UNIVERSITY

ENDOWMENT

FAQS This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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ENDOWMENT FAQS

What does it mean to establish an endowed fund?

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When you create an endowment at the university—for instance to establish a scholarship or professorship—the money you contribute is invested in perpetuity and managed as a permanent financial asset to support your philanthropic objective. Each year, a portion of the fund is paid out—proportionate (over a period of years) to our investment earnings and currently about 5%—and used for the purposes the donor and the university agreed upon when the gift was made.

How much money does it take to start an endowment?

Georgetown has set different minimum funding levels for different types of endowments.

General • $100,000 will establish an unrestricted endowment for a particular school or division.

• $100,000 will establish an endowment restricted to a specific purpose.

Financial Aid • $100,000 will create an endowed scholarship fund that supports U.S. students year after year.

• $1 million will create an endowed scholarship fund that supports international students (preference may be given to a designated region).

• $100,000 will fund a graduate fellowship.

Faculty • $8 million will fund a named university professorship (appointment approved and bestowed by the university president).

• $5 million (or more) will fund the creation of a new named chair supporting a new position in a strategic growth area (approved by dean and provost/EVP).

• $3 million will establish a named chair supporting an existing position; donor may designate the school and department or discipline.

• $1 million will establish a named professorship for an existing position; donor may designate the school and initial department or discipline.

• $1 million will establish a named term professorship for an existing position; donor may designate the school (and in the College, may also specify sciences or arts).

A current-use option is available to establish a single, 5-year term professorship at $250,000+.

Athletics

Merit-based scholarships

• $100,000 will create an endowment that supports athletics scholarships; donor may designate the sport.

• $1 million will create an endowment that supports men’s basketball scholarships.

Coaching/programs • $100,000 will create an endowment that supports programs or coaches; donor may designate the sport.

• $3 million will establish a named chair supporting an existing coaching position; donor may designate the sport ($5 million for men’s basketball).

• $5 million will fund the creation of a new named chair supporting a new position or area of strategic growth (approved by AD).

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GEORGETOWN UNIVERSITY

Did you know?

Georgetown’s spending rate policy reflects a trailing 5-year moving average of the endowment’s market value two years in arrears and is approved by the Board of Directors. To learn more about the university’s endowment policies, visit investments.georgetown.edu.

How does Georgetown manage its endowment?

Georgetown’s investment office is responsible for investing the university’s pooled endowment (the means by which the vast majority of individual endowed funds are managed), adding value through asset allocation and the selection of investment managers and vehicles.

Much the way individual investors pool their assets in a mutual fund, each of the individual funds that compose the university’s endowment owns units in Georgetown’s pooled endowment.

The university’s investment and spending policies are designed to provide a stable flow of support for annual operations while preserving the future purchasing power of the endowment through asset growth and aligning with the institution’s values.

The university’s Board of Directors sets policies and has final fiduciary responsibility for the endowment.

INDIVIDUAL FUNDS OWN UNITS IN POOLED ENDOWMENT

POOLED ENDOWMENT

Growth Preserves Future Purchasing Power

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice.

Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

Support For Annual Operations

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ENDOWMENT FAQS

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GEORGETOWN A LEADER IN 10-YEAR ENDOWMENT GROWTH (FY 2007-2017) Among U.S. News & World Report Top 20 Universities

Notre Dame

111%

Penn

98%

Johns Hopkins

93%

Stanford

67%

Georgetown

62%

Duke

60%

Washington (St. Louis)

58%

Princeton

56%

Northwestern

53%

Dartmouth

52%

MIT

49%

Cal Tech

47%

Columbia

46%

Vanderbilt

44%

Brown

40%

Rice

36%

Yale

35%

Cornell

34% 22%

UChicago Harvard

19%

GROWTH

Source: U.S. News & World Report, NACUBO

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GEORGETOWN UNIVERSITY

Does the new endowment tax on private colleges and universities apply to Georgetown?

No. The tax bill passed in December 2017 imposes a 1.4% excise tax on the net investment income of only certain institutions. The tax applies to private universities with at least 500 students if the aggregate fair market value of the university’s assets (other than those assets used directly in carrying out the university’s exempt purposes) is at least $500,000 per student. Georgetown does not meet these criteria and remains committed, as always, to growing the endowment.

Who controls how the income from my endowment gift is spent?

Endowment funds may either be categorized as unrestricted or restricted: • Unrestricted endowments may be used for any purpose and usually go toward operating expenses or a particular project of the university’s choosing. Unrestricted gifts allow Georgetown to direct your support where it’s needed most—valuable flexibility to keep us nimble in embracing future opportunities.

• Restricted endowments are funds established for a more specific purpose, designated by the donor, such as a department or scholarship. The restrictions are documented in a gift agreement and are binding on the university.

Whose name is on the endowment fund?

What happens after I have made my gift?

You can name an endowment for yourself, your family, your friend, or your favorite professor—whatever is meaningful to you.

Once your endowment reaches a minimum designated level and starts generating spendable income, Georgetown will begin sending you annual reports detailing the value and use of your endowment fund.

Financial aid endowment donors learn about their scholarship and fellowship recipients, and professorship donors are updated on the activities of their faculty members.

When you establish an endowment, you begin a new relationship with Georgetown, one that becomes a lasting part of your family’s story.

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YOUR GOALS

CREATING A LASTING IMPACT

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GIFTS THAT ALSO PROVIDE INCOME

Life income gifts satisfy several goals: They provide philanthropic support while generating both a charitable income tax deduction and an income stream for you or your loved ones.

There are three basic types of life income gifts: • A charitable gift annuity provides fixed payments for the life of the donor and/or loved one. (gift minimum: $25,000, not available in CA/NY). Donors also have a one-time opportunity to use up to

ESTABLISHED ENDOWMENT

$53,000 from an IRA to create a new CGA to benefit themselves and a spouse.

• A charitable remainder unitrust provides payments that fluctuate with the market—for life or a set term—and thus may provide a hedge against inflation. (gift minimum: $100,000) • A charitable remainder annuity trust provides a fixed income like a gift annuity, but the tax treatment of the payout may be preferable for donors giving highly appreciated assets. (minimum: $100,000, $50,000 for CA/NY as CGA substitute) Donors looking to pass on income to their beneficiaries also may

NEW RELATIONSHIP WITH GEORGETOWN

consider a charitable lead trust, which can be funded during the lifetime of the individual creating the trust or by will. A charitable lead trust— often considered to be the inverse of a charitable remainder trust—is an irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually going to family members (or other beneficiaries) with reduced or no estate and gift tax.

A NOTE ABOUT CHARITABLE DEDUCTIONS Georgetown, which is recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code, is eligible to receive tax-deductible gifts subject to the requirements and limits set forth in the Code and the rules and regulations of the Internal Revenue Service.

LASTING PART OF YOUR FAMILY’S STORY

This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.

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GEORGETOWN UNIVERSITY

IT’S YOUR GIFT. LET US HELP YOU MAKE THE MOST OF IT.

INSPIRED GIVING

You’ve considered the why, when, what, and how.

Now, you get to decide where.

To learn more about what your support could mean for Georgetown’s students, faculty, programs, and mission, please visit giving.georgetown.edu.

To speak with a member of our team, please email giving@georgetown.edu or call 202-687-1690. We will respond within one business day.

We are excited to be your partner in meaningful philanthropy and sincerely appreciate your generosity, wherever it may lead you. Thank you for your commitment to Georgetown’s success, today and always.

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GIFT PLANNING TERMS TO KNOW GLOSSARY 1789 Scholarships: Named in

community’s collective engagement

$25,000 or more, taking an income

honor of the year Georgetown

and commitment.

tax deduction in the year your

was founded, these donor-funded scholarships are critical to fulfilling the university’s single highest philanthropic priority: ensuring access and affordability for all admitted undergraduate students.

1789 Scholarships include loan relief for students with the highest demonstrated financial need.

Appreciated securities: Investments that have increased in value from the time they were purchased, including publicly traded stock and mutual funds.

Bequest: The act of gifting personal property or money through the provisions of a will or another estate

Annual fund: A designated fund for

planning instrument.

Georgetown’s different units and

Capital gains tax: A government

campuses, composed of restricted and unrestricted current-use funds given by the philanthropic community. Examples of annual funds at Georgetown are the

tax on the profit made from selling property or investments. “Capital gain” is calculated as the total sale price minus the original cost.

gift is made. Georgetown, in turn, would pay one or two beneficiaries designated by you a fixed income for life. Ultimately, the balance of your original gift would be applied to the purpose you have chosen at Georgetown. Charitable gift annuities can begin paying immediately upon establishment, can be deferred (see deferred charitable gift annuity), or can be left flexible.

Charitable lead trust: An irrevocable trust designed to provide financial support to one or more charities for a period of time, with the remaining assets eventually

Georgetown Fund, the Law Annual

Charitable gift annuity:

Fund, and the Men’s Basketball

The simplest life income gift

beneficiaries) with reduced or no

Fund.

arrangement, a charitable gift annuity

estate and gift tax. Charitable lead

pays the donor a fixed income for

trusts can be funded during the

life in exchange for a gift of cash

lifetime of the individual creating

or stock. To establish a charitable

the trust or by will and are often

gift annuity at Georgetown, for

considered to be the inverse of a

instance, you would make a gift of

charitable remainder trust.

Annual giving: The act of giving expendable gifts to Georgetown every fiscal year; participation demonstrates the donor

going to family members (or other

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GLOSSARY

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Charitable remainder trust:

Deferred charitable gift annuity:

Endowed fund: A gift that is

An irrevocable trust that generates

An appealing option for some

invested in perpetuity, in which the

a potential income stream for the

donors who do not seek additional

earnings from the invested assets

donor or other beneficiaries, with

current income but are looking for

provide permanent financial support,

the remainder of the donated assets

a strategic way to increase future

often for a specific purpose directed

going to a charity or charities.

income. In establishing this type of

by the donor.

Charitable remainder annuity

gift annuity, you would choose a

trusts distribute a fixed annuity

date in the future to receive the first

amount each year, and additional

payment; the deferral results in an

contributions are not allowed.

increase in the annuity rate and an

Charitable remainder unitrusts

increased income tax deduction.

distribute a fixed percentage based on the balance of the trust assets (revalued annually), and additional contributions are permitted.

Complex asset: A non-publicly

Donor-advised fund: A charitable giving account established at a public charity. A donor creates a donor-advised fund with cash or appreciated property and receives

traded or other illiquid asset. This

an immediate charitable income tax

includes privately held business

deduction for contributions made

interests (e.g., private company

to the DAF. The funds are then

stock, partnership interests, private

invested for tax-free growth, and

equity, hedge fund interests, pre-

the donor can recommend grants

IPO shares) and other non-publicly

to any IRS-qualified public charity.

traded assets (e.g., restricted stock,

Donors can use their DAF to make

commercial and residential real

gifts immediately or can use it as a

estate, artwork and collections, oil

“savings account” for future gifts.

and gas royalty interests, patents, copyrights). Complex assets are subject to a review and approval process at the university.

Current-use gift: Also called an

Endowed faculty chair/

professorship: Endowing a chair or professorship assures that the donor’s area of interest will be part of an institution in perpetuity. The

expendable gift. A contribution that

endowed position, in turn, provides

may be expended in part or in full

resources and prestige to attract and

at any time by the university—for

recognize outstanding faculty and

instance, gifts to annual funds.

research.

Endowment: The permanent capital of a university—an aggregation of assets invested to support its educational mission in perpetuity.

Estate tax: A tax on an individual’s right to transfer property at death.

It consists of an accounting of everything an individual owns or has certain interests in at the date of death, based on the items’ fair market value.

Fair market value: The price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

Fellowship: A gift that provides support for a graduate or postdoctoral student.

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GEORGETOWN UNIVERSITY

The Georgetown Fund: The

Living trust: A written agreement,

Pledge: A promise to make future

beneficiary of unrestricted gifts

established during an individual’s

contributions to an organization.

through Georgetown’s annual giving

lifetime, designating responsibility

For example, some donors make

program. Georgetown directs 100%

for the management of a person’s

multi-year pledges promising to give

of Georgetown Fund gifts to 1789

assets. A trust involves three parties:

a specific amount spread across

Scholarships for undergraduate

the trust’s creator, the trustee(s) who

several years.

students.

agree to manage that individual’s

Gift agreement: Outlines the purpose, form, schedule, and administration of gifts.

Income tax deduction: A reduction of income that is able to be taxed.

IRA rollover gift: (Also called a qualified charitable distribution.)

Donors 70 ½ or older can direct up to $105,000 each year to charity from a qualified IRA. The distribution is tax-free and counts toward the donor’s annual required minimum distribution—with the added bonus of providing a gift to charity.

Life income gift: Gift that provides

assets as directed by the terms of the trust, and the beneficiaries.

Outright gift: A gift transferred immediately from a donor to an organization. This category can include cash, securities, real estate, tangible personal property, matching gifts, and gifts-in-kind.

Planned gift: A gift, made in lifetime or at death as part of a donor’s overall financial and/or estate planning. In contrast, gifts to an annual fund are made from a donor’s discretionary income; while they may be budgeted for, they are not “planned.”

Principal: The amount donated to fund an endowment; the principal is invested and generates income in perpetuity.

Restricted fund: A gift that is restricted in its use by the donor.

Scholarship: An award of financial support for a student.

Unrestricted fund: A gift that may be used for any purpose and usually goes toward operating expenses or a particular project of the university’s choosing. Unrestricted gifts allow Georgetown to direct support where it’s needed most.

philanthropic support while also generating a charitable income tax deduction and an income stream for a donor or loved ones.

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INSPIRED GIVING

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