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Advancing Our Future

A Guide to Philanthropic Opportunities at The Florida Atlantic University Foundation, Inc.


For your information... While the Florida Atlantic University Foundation will work with you to achieve your philanthropic goals, both gift giving and estate planning have tax ramifications for our donors. The FAUF encourages all of its potential donors to seek legal and/or tax advice. The statements made in this document are general in nature and may or may not apply to your specific situation. We would be happy to assist you in obtaining independent tax and/or legal advice.

The Florida Atlantic University Foundation, Inc. 777 Glades Rd. Boca Raton, FL 33431 561.297.3010 561.297.2890 (fax) www.fauf.org Federal Tax ID# 59-0917284


Advancing Our Future

A Guide to Philanthropic Opportunities at The Florida Atlantic University Foundation, Inc.


TABLE OF CONTENTS The FAU Foundation, Inc.

4

Why Giving to the FAUF is Important

4

The FAU Endowment

6

Endowment Management

6

Establishing a Fund or Endowment

7

Typical Process to Establish a Fund or Endowment

7

Types of Funds Endowed Current Use

8

Types of Endowments Restricted Unrestricted

8

Funding Level Guidelines

9

Naming Opportunities

10

State Matching Gift Programs Major Gifts Facilities

10

Types of Gifts Outright Gifts Gifts of Securities Financial Accounts Gifts In Kind — Tangible Personal Property

12


Leaving FAU in Your Will or Trust

14

Bequests Specific Residuary Contingent

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A Living Trust

15

Life Insurance

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Your Retirement Plan Assets

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Life Income Gifts Charitable Gift Annuities Charitable Remainder Annuity Trusts Pooled Income Funds Charitable Lead Trusts

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Gifts of Real Estate Retained Life Estate

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To Honor, To Remember

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Giving Societies President’s Club Recognition Levels 1961 Society Recognition Levels Patron Levels for Recent Graduates The Horizon Society Membership Qualifying Deferred Gifts

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The FAU Foundation, Inc. The FAU Foundation (FAUF) was started in December 1960 as the University at Boca Raton Endowment Corporation and later renamed the Florida Atlantic University Foundation, Inc., a non-profit 501(c)(3) organization certified by the Florida Legislature as a direct-support organization for Florida Atlantic University (FAU) under Florida Statutes Section 1004.28. As a University direct-support organization (DSO), the Foundation is organized and operated exclusively to receive, hold, invest, and administer private support and to make expenditures to or for the benefit of FAU. The mission of the FAUF is to encourage, promote, and provide funds and other resources for the benefit of the University in furtherance of its missions and purposes and to secure the application of these funds in the best manner adapted to the needs of the University.

Why Giving to the FAUF is Important Throughout its history, FAU has relied on the generosity of alumni, friends, corporations, and foundations that endorse the University’s mission of excellence. This support has played a vital role in propelling FAU into the front ranks of the world’s public research institutions. The reasons for making a gift to the FAUF are personal and varied. Perhaps you are grateful for your FAU experience and want to give something back. Maybe you would like to leave a legacy to benefit future Owls for generations to come. Perhaps you feel passionate about supporting an important cause, such as cutting-edge research or the development of new technology. Or you may wish to take advantage of the tax benefits of making a gift. 4


Whatever your motivation, you’ll find there are many ways to make a difference including giving to the colleges, schools, departments and programs at FAU. When you make a gift to the FAUF, you have flexibility in determining how the funds will be used, as well as many options for making your gift. Unrestricted gifts are among the most valuable to the FAUF, because they allow the University to allocate funds wherever the need is greatest, and to take advantage of unique opportunities as they arise. Your unrestricted contribution may be used to support costs associated with financial aid, innovations in teaching, research equipment, facilities, and much more.

“...there are many ways to make a difference... .” Restricted gifts allow you to designate your gift to a specific school, program, or other priority area at the University. When you make a restricted gift to the FAUF, you enjoy the satisfaction of knowing you are supporting a program that is personally meaningful to you. You also have the option of designating your gift for current use or for endowment. Current-use gifts provide funds and flexibility over the short term, whereas endowment gifts provide security over the long term by expanding the University’s permanent financial base and creating a predictable source of future income for such things as endowed faculty positions, student scholarships or fellowships, broad-based interdisciplinary research projects, or even entire academic programs. 5


The FAUF Endowment A gift to the FAUF Endowment is a gift for perpetuity. The Board of Directors of the FAUF is responsible for the safeguarding and growth of the FAUF endowment. Interest earned on the principle of an endowment is used to support students, faculty, programs and facilities on any or all of the campuses of FAU. The funds are monitored to ensure that any special conditions or provisions relating to the gift and its original intent are met. Tax benefits include deductions for immediate or outright gifts and other possible benefits for the use of trusts. The FAUF investments are prudently managed by a team of professional investment managers and advisors and are monitored by the Investment Committee of the FAUF Board of Directors.

Endowment Management The FAUF’s investment and spending policy is designed to preserve and increase the future purchasing power of each endowed fund and to generate expendable funds to support the purpose of each fund. The FAUF is responsible for ensuring that expendable funds meet the original intent of the gift and are in compliance with the FAUF’s spending policies. The Foundation has a fiduciary responsibility to invest gifts wisely, ensure that funds are used for the intended University purpose(s) and protect the ability of the endowment to provide continuing expendable funds in perpetuity. 6


Establishing a Fund or Endowment Creating a fund or endowment through the FAUF may be accomplished by making an outright gift of cash, stocks or other tangible assets, or by a deferred gift method such as a bequest.

Typical Process to Establish a Fund or Endowment The typical process involves the donor completing a gift agreement to facilitate the establishment and the administration of the gift. The gift agreement will outline the specifics of how the gift and fund will be used by the FAUF. The gift agreement will describe the proper name of the fund, its purpose, funding, general administration and criteria to be used for awarding the fund. The document requires the acceptance and signature of the donor, the FAUF and FAU.

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Types of Funds Two types of funds may be established: endowed or current use. Endowed Endowed funds require a minimum gift of $20,000 which may be pledged over a period of not more than five years. Deferred gifts may also be used to establish endowed funds. The fund will become endowed once the balance achieves the necessary minimum level. If the minimum is not reached in a period of five years, the endowed fund would automatically convert to a current use fund. Current Use Current use funds are spent as received and do not earn interest. These funds may be established with a gift of $5,000.

“Two types of funds may be established: endowed or current use.� Types of Endowments Restricted A restricted endowment is one in which the gift is given to a specific program. A restricted gift can establish a scholarship or program fund, or provide faculty support. Unrestricted An unrestricted endowment is created to fund any program, general scholarship or other University need. The FAUF will direct the funds to address the greatest needs of the Institution. 8


Funding Level Guidelines Minimum contributions to establish endowed funds are noted after the type of endowment. The FAUF threshold guidelines for endowed funds are as follows: Endowed Funds

Minimum Gift

State Match Occupied By

Super Chair:

$4 million

100%

Rank of Full Professor

Eminent Scholar Chair:

$2 million

100%

Rank of Full Professor

Department Chair:

$1.5 million

80%

Rank of Full Professor

Visiting Scholar:

$1 million

75%

Rank of Full Professor

Professorship:

$600,000

70%

Rank of Full Professor

Faculty Fellowship:

$300,000

50%

Full Time Faculty Member

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Naming Opportunities Because of the public visibility, permanence and significance of the naming of the state university system’s colleges, schools, departments, institutes and centers by virtue of private donations, such actions must comply with the following:

1

In accordance with applicable State rules, colleges and schools may be named to recognize those individuals who have attained achievements of extraordinary and lasting distinction and who have made significant contributions to the FAUF. The personal integrity of the individuals should be exemplary.

2

Naming of a college or school should comply with the state university system’s policies and will reflect not only the donor’s appropriate financial support, but also the donor’s commitment to the mission, vision and objectives of FAU.

3

The private gift associated with such naming shall satisfy minimum gift amounts specifically established in these guidelines or as determined by the Executive Director of the FAUF, and the President of FAU.

State Matching Gift Programs Major Gift Matching Program The state of Florida’s matching gift program is an important incentive for private giving, providing donors with the opportunity to increase their gifts substantially. Under this multi-level program, gifts of $100,000 or more that are used to establish faculty programs or scholarship endowments are eligible to be leveraged by state funding.** 10


Facilities Matching Gift Program Specific criteria for accepting and processing gifts for the construction of capital facilities are outlined in Section 1013.79 of the Florida Statutes. The provisions of the statute and appropriate Board of Trustees rules will be made part of this policy. All requirements of the Alec P. Courtelis State University Facility Enhancement Challenge Grant Program (Section 1013.79, Florida Statutes) must be met. To be eligible to participate, the private donation must be equal to one-half of the total cost of a facilities construction project and come from private non-governmental sources, and shall be matched by a state appropriation equal to the amount raised for a facilities construction project subject to the General Appropriations Act. The Foundation will name the constructed facility in honor of the donors at the option of the University and the State Board of Education. The Foundation must receive prior approval by the Legislature to name the constructed facility after a living person. The Foundation will seek state matching funds once all private funds for planning, construction, and equipping the facility have been received. **

Naming Opportunity

Minimum Gift

College

$ 10 million

School

$ 5 million

University-wide Center

$ 1 million

Center within a College

$ 500,000

Endowed Laboratory

$ 300,000

** Matching gift programs are funded by the Florida Legislature. Interested donors should contact the development officer in the area of interest to determine the availability of annual funding for these programs.

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Types of Gifts Outright Gifts The most frequent method used to make a gift to the FAUF is by check or credit card. A gift may be designated to a specific program or to the Greatest Needs Fund. The Greatest Needs Fund is designed to give the FAUF and the University the greatest flexibility in responding to the needs of the University.

“The most frequent method used to make a gift to the FAUF is by check or credit card.� Gifts of Securities A gift of long-term appreciated securities potentially has at least two advantages: it provides the donor with an income tax deduction equal to the fair market value of the securities and it avoids capital gains taxes on the transfer. Stocks and securities, shares of stock in closely-held companies, bonds and government issued bonds may be given to the FAUF. If securities are delivered to the FAUF, the value of the gift will be the mean of its fair market value on the business date of delivery. Electronic transfer of securities may be accomplished by the donor notifying their banker or broker. Contact the FAUF when you decide to make such a transfer.

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Financial Accounts Most accounts at financial institutions can be made payable at the end of a lifetime to a person or a charitable organization, such as the FAUF. Ask a manager of the institution how you can arrange to designate a beneficiary for your CD, savings account, share account, money market account, etc. Sometimes this can be accomplished through a P.O.D. (payable on death) designation. Brokerage account securities can also be left through a T.O.D. (transfer on death) designation.

Gifts In Kind — Tangible Personal Property The FAUF may accept gifts of tangible personal property, including works of art, jewelry, antiques, coin, stamp and other collections, equipment, manuscripts and books. Such gifts may be accepted only after a thorough review indicates the property is readily marketable, or may be used exclusively for the charitable and educational purposes of the FAUF. Such property may be transferred, sold, or further assigned to the benefit of those purposes. Property to be given to the FAUF must follow a formal donation process coordinated by the Executive Director of the FAUF. Whenever donors estimate their gifts of tangible personal property at $5,000 or more and seek to qualify for a charitable tax deduction, additional IRS regulations apply including the submission of a written appraisal by a qualified independent appraiser. 13


Leaving the FAUF in Your Will or Trust Remembering the FAUF in your will or trust is an easy way to make a meaningful gift of a specific amount, a percentage, or residual of your estate. If you make annual gifts to the FAUF you can arrange for those gifts to continue after your lifetime by creating an endowment within your will. This ensures your gift is here in perpetuity. If you are considering making the FAUF one of your beneficiaries, we encourage you to let us know so we can work with your advisors to ensure your wishes are carried out to your exact expectations.

Bequests Bequests are gifts to the FAUF through the provisions in a donor’s will or living trust. Such provisions benefit the University and may reduce the estate’s tax liability. These gifts may take a number of forms including specific, residuary or contingent bequests. Specific A precise amount is designated to be given to the FAUF. Residuary Anything that is left of an estate, after distribution to other heirs (often family members), goes to the FAUF.

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Contingent Assets are directed to the FAUF if a designated heir is no longer living.


A Living Trust A living trust provides you flexibility in your estate planning. These documents are fully revocable and therefore you can change or terminate them at any time during your life. The terms of the trust, such as determining how your assets will be distributed, become activated at your passing. You can make a provision in a living trust naming the FAUF as a beneficiary to the trust.

Life Insurance Perhaps you have a policy that you don’t need any longer. You can gift the policy (transfer ownership) to the FAUF and, if it is paid up, receive a charitable tax deduction on the date of the gift. You can also name the FAUF as beneficiary of a policy and retain ownership. Insurance can be a great way to replace the value of another gift. That way, your estate stays the same and you’ve made a meaningful gift to the FAUF.

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Your Retirement Plan Assets If you leave a retirement plan to a family member or other beneficiary, it could be subject to double taxation. If the plan was funded with pre-tax dollars, it could be taxed as income to the beneficiary, as well as subject to estate taxes. If you gift your retirement plan assets to the FAUF, your estate would receive a tax deduction in the amount of the gift. Life insurance and retirement plans may provide an opportunity to name the FAUF as a beneficiary.

“If you gift your retirement plan assets to the FAUF, your estate would receive a tax deduction in the amount of the gift.� Life Income Gifts Life income gifts are those in which the donor and/or designated beneficiary may receive income for life, frequently with significant tax savings, while providing a long-term gift to the FAUF.

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Appreciated property, usually appreciated securities or real estate, frequently is given to fund life income arrangements and may provide the donor with significant tax savings, as well as the satisfaction of making a significant contribution to the FAUF.


Charitable Remainder Trusts Charitable remainder trusts are created by a donor to produce income for a specific period of time, often a lifetime, with the assets remaining at the end of that period going to a specified charitable recipient, such as the FAUF.

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Charitable Gift Annuity A charitable gift annuity provides donors with a fixed income stream for life, with the assets passing to the FAUF at death. The gift can be structured to begin paying income at the time the gift is made or at a future date. Charitable gift annuities can be funded with many different assets.

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Charitable Remainder Annuity Trust Charitable Remainder Annuity Trust can be established by a donor to make set payments for the lifetime of each beneficiary. It allows the donor to designate the remainder of the trust, at its termination, to the FAUF.


Pooled Income Funds Pooled income funds are invested by the FAUF in an investment pool, similar to a mutual fund, to produce income for donors for life with the principle going to the FAUF at the donor’s death.

Charitable Lead Trusts A charitable lead trust can be established to provide the FAUF with an income stream for a term of years or a donor’s lifetime, with assets remaining at the end of the trust term passing to a designated beneficiary. The charitable lead trust is typically established by a donor to pass assets to heirs at a reduced transfer tax cost. 19


Gifts of Real Estate A residence or other real property may be given to the FAUF, including houses, condominiums, commercial properties, farm land, rental property and undeveloped land, after a thorough review and inspection by the FAUF has been accomplished. The donor is usually responsible for expenses for the transfer, taxes, and any indebtedness on the property. Retained Life Estate An individual who gives the gift of a retained life estate donates their property and then retains the right to occupy the property for life. A gift of a remainder interest in a personal residence or farm provides the donor with current income tax deductions for the present value of the remaining interest and also permits the donor to avoid capital gains taxes on the appreciation of the property. Other ways to gift property or a portion of ownership are available at the FAUF. Questions should be directed to the Office of Gift Planning.

To Honor, To Remember‌

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Memories of loved ones and tributes celebrating life’s triumphs can be given form and permanence on FAU’s campuses in a variety of ways. Benches, tables and granite memorial stones can display plaques bearing a message, a caring thought or a dear remembrance.


Giving Societies President’s Club The President’s Club recognizes donors who have made contributions of cash with a cumulative total of $10,000 or more, or gifts-in-kind with a cumulative value of at least $50,000. President’s Club members represent the commitment and vision necessary to support and ensure the future of the University. President’s Club Recognition Levels Summa Cum Laude Society

$5,000,000 and above

Magna Cum Laude Society

$1,000,000-$4,999,999

Cum Laude Society

$500,000-$999,999

Ambassador Society

$100,000-$499,999

Leadership Society

$50,000-$99,999

Atlantic Society

$10,000-$49,999

1961 Society The 1961 Society was created in 2003 to recognize the financial commitment of individuals who support the University with gifts from $1,000 to $10,000 annually. Members of the 1961 Society provide the FAUF with the financial resources necessary to support and enhance the quality of academic programs and to provide scholarship assistance to deserving students. 1961 Society Recognition Levels Scholar

$5,000 - $9,999

Associate

$2,500 - $4,999

Patron

$1,000 - $2,499

1961 Society Patron Levels for Recent Graduates One to three years since graduation

$100

Four to six years since graduation

$250

Seven to ten years since graduation

$500

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The Horizon Society The Horizon Society is an exclusive club created for the FAUF donors who remember the FAUF in their financial or estate plans. The FAUF confers Horizon Society membership on those whose generosity and vision helps ensure that FAU continues to have a bright future. Members of the society have demonstrated an unwavering confidence in FAU by choosing to make deferred gifts that will come to the University at a future date. Continued support by alumni and friends through Gift Planning has resulted in the development of numerous innovative academic programs, a greater number of scholarships for students and research opportunities for FAU faculty members. Your investment in FAU’s future and future generations of FAU students helps ensure the vitality and viability of this institution for generations to come and, at the same time, offers you an exceptional degree of flexibility.


Membership Individuals or couples who have made a deferred commitment in support of the University are recognized with Horizon Society membership, which is automatically conferred once we are advised of the deferred gift. Qualifying Deferred Gifts • Will bequest or trust • Charitable remainder trust (unitrust or annuity trust) • Gift annuity (immediate or deferred) • Retirement account beneficiary • Life insurance beneficiary • Remainder interest in retained life estate (residence or farm) • Pooled income fund 23


FOR MORE INFORMATION OR ASSISTANCE Boca Raton Campus University Advancement 561.297.0087 Office of Gift Planning 561.297.2119 Office of Annual Giving 561.297.4223 University Libraries 561.297.0087 Barry Kaye College of Business 561.297.3186 Charles E. Schmidt College of Science 561.297.0007 Charles E. Schmidt College of Biomedical Science 561.297.0087 Christine E. Lynn College of Nursing 561.297.1102 College of Education 561.297.1023 College of Engineering and Computer Science 561.297.2083 Dorothy F. Schmidt College of Arts and Letters 561.297.3606 University Athletics 561.297.0131 Broward Campuses 561.297.0087 College of Architecture, Urban and Public Affairs 954.762.5661 Harbor Branch Oceanographic Institute 772.873.3340 John D. MacArthur Campus (Jupiter) 561.799.8665 Harriet L. Wilkes Honors College 561.799.8665 Pine Jog Environmental Education Center 561.297.1023 Treasure Coast Campus 772.873.3340 WEB SITES FAU Foundation fauf.org

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Office of Gift Planning fauf.org/giftplanning



FAU Planned Giving Booklet