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UK Philanthropy Gift & Estate Planning

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 Kentucky—or adding to our existing endowment—you can give a gift that lasts forever.

How It Works
You give cash, securities or other assets to UK for a new or existing endowment.

Determine if your endowment will fund a specific program or service, or be given without restrictions—allowing UK to direct the funds to our most critical needs.

We use a portion of the investment earnings each year for the fund’s purposes, and the balance remains invested to perpetuate the endowment.

Tip: You can use an endowment gift to honor someone important to you who appreciates our commitment to education, research, and service. Consider designating your endowment in his or her name as a way to celebrate them.

Endowments

A Quick Example

Sam wants to provide an annual scholarship by writing a check for $5,000 to the University of Kentucky 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 scholarship endowment at UK. This is the amount needed to ensure UK continues to receive the annual $5,000 into the future. (See chart.)

Sam is able to provide a current scholarship during his lifetime with annual gifts. After Sam’s lifetime, we use a portion of the investment earnings each year to provide the scholarship and invest the remainder, allowing it to grow and support annual payouts indefinitely.

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 percent endowment spending level, 25 times an annual gift amount equals a perpetual gift.
Endowments

4 Key Steps to
Creating an Endowed Gift

  1. Put It in Writing
    If you wish to create an endowment through your will or 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, UK will work with you to outline how your gift can create the most impact. In both cases, we use a simple agreement to make sure your wishes are clearly expressed
  2. Determine the Amount Needed
    If you are creating an endowment today, UK can inform you of the minimum amount required. If you intend to create one through your estate, UK recommends you include a provision in your will or trust directing your executor or personal representative to distribute more funds if needed, should minimums change.
  3. Include Flexibility for the Future
    A perpetual endowment is intended to last a longtime! We will recommend including language in the endowment that allows UK some flexibility to adapt to changing circumstances and maximize the impact of your gift over time, while always respecting the intent of your gift.
  4. Lean on UK for Help
    We respect the personal nature of these decisions and have experience with the sensitive issues involved. the University of Kentucky would be glad to consult with you to help ensure that your wishes are satisfied.
Endowments

Next Steps

We would love to work with you to help you create a lasting legacy that honors your values for many years to come. Please contact us today to learn more about establishing an endowment with UK.

Gift and Estate Planning
Phone: (859) 257-7886
Email: giftandestate@uky.edu
Sturgill Philanthropy Building
Lexington, KY 40506-0015

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Endowments

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