How to Give
Thank you for considering a gift to the College of Fisheries and Ocean Sciences at the University of Alaska Fairbanks.
Two Decisions to Make About Giving
There are two basic decisions that arise with every gift: How do you want the gift to be used by the University, and what form will your gift take. By making those two decisions you can be sure that your gift is not only made in the way that best suits your financial situation but also that it will accomplish your intention to benefit the University of Alaska. The CFOS Development Officer, Teresa Thompson, can help you determine where and how to invest your gift.
1. Unrestricted Gift
The broadest and most useful kind of gift is an unrestricted gift to the University. This means that the University will decide how your gift should best be used to support the University. To make this kind of gift you need only write the word "unrestricted" on the memo line of your check or on the online form used for making your gift.
2. Restricted Gift
You may restrict your gift in several different ways. To place a restriction, you need only indicate the restriction on the memo line of your gift check or on the online form used for making your gift. When your gift is received, it will be placed into a fund that matches the purpose restriction you have indicated. Some of the more popular ways to target your gift are
- To support a specific program or campus of the University (e.g., "the College of Fisheries and Ocean Sciences at UAF" or "the Fairbanks Campus").
- To support a specific broad use (e.g., "to provide student scholarships" or "to support faculty research").
- To support an existing fund (e.g., "to support the National Ocean Sciences Bowl regional competition"). The Foundation manages more than 600 existing funds which have been previously established to benefit specific portions of the institution or for specific purposes. Your gift can be added to such a fund and used for the purposes for which that fund was established. To see a list of existing funds, please contact CFOS Development Officer Teresa Thompson, who can tell you which funds fit the purpose or portion of the University you wish to benefit from your gift.
- To establish a new fund. If you wish to have your name or someone else's name on a fund (e.g., the Chester Buckholtz Scholarship) or establish a fund for a very specific purpose (e.g., to provide internships for students in Fisheries) for which the Foundation does not already maintain a fund, you may establish a new fund at the Foundation.
In deciding on the purpose of a new fund, you may find the following options and possibilities helpful. Please note that many options have minimum gift amounts.
Endowments for any purpose, restricted or unrestricted, may be created with a minimum gift of $25,000. An endowment may be established to support a chair, fellowship, scholarship, professorship or any other defined use at the University. The minimum gift amounts for endowments created for some specific uses are noted below.
Endowments are managed by the Foundation in accordance with its endowment management guidelines [PDF].
Scholarships or Student Awards
This requires a $1,000 annual minimum award per student or an endowment gift of a minimum of $25,000.
This provides funds for a graduate student to do research. It requires a minimum annual gift of $5,000 or an endowment gift of $100,000.
Provides additional funds to an existing professor so that he or she may travel to give additional lectures, buy a particularly needed piece of equipment and the like. At least $25,000 annually is needed for such support or an endowment gift of $500,000.
Provides income for a visiting professor to come to a campus of the University of Alaska or for a University of Alaska professor to teach at another university. These professorships allow the university to benefit from talent that would otherwise be unavailable or to share the expertise of our faculty with another university. At least $15,000 annually is needed for such a fund or an endowed gift of $250,000.
This requires a donation exceeding $2.5 million if an endowment is established, or annual contributions of $100,000 if a restricted fund is established.
Named Program Fund
Named funds may be established in areas of interest to donors in individual colleges or departments. A minimum endowment gift of $25,000 is required.
Centers and Institutes
Research Institutes or Centers of Excellence may be named. The endowment gift needed must be large enough to provide sufficient annual income to be equivalent to the annual state appropriation to support the operating budget of the Center or Institute.
Named Colleges or Schools
Associating an individual, corporation or foundation name with a college acknowledges great commitment on the part of the donor. These transformational gifts typically begin at $25 million.
A decision that comes with every gift is what form it will take. Below are the most popular options.
- Cash Gifts
- Life Insurance
- Charitable Remainder Trust
- Charitable Gift Annuities
- Personal Property
- Real Property
- Stocks and Mutual Funds
- Trusts, Life Estates, and Bequests
Cash gifts can be in the form of checks, money orders, cash, bank drafts, electronic fund transfers and credit card gifts made payable to the University of Alaska (UA) Foundation indicating the fund or project to which the donor wishes to contribute. The UA Foundation does not accept American Express or Discover cards. Most other major credit cards are accepted. The UA Foundation will provide a standard receipt to donors for cash and gifts made via credit cards.
Payroll Deduction. Gifts may be made by University of Alaska employees to UA Foundation accounts through a UA payroll deduction. For more information, contact your human resources representative.
A donor can name the UA Foundation as beneficiary to his/her life insurance policy to provide funds in the future. The donor may also give the entire policy to the UA Foundation and receive a charitable deduction for the value of the policy (cash value, not face value) at the time the gift is made and for any premium payments made by the donor to maintain the policy after transfer.
Charitable Remainder Trust
A charitable remainder trust allows the donor to transfer funds or properties to the UA Foundation. The UA Foundation will invest the value of the donation, and the donor then becomes a beneficiary of regular payments for a specified time period or for life.
Charitable Gift Annuities
A Charitable Gift Annuity (CGA) enables a donor to make a gift to the UA Foundation and receive fixed annual payments for life. The payment amount is based upon the size of the gift and the age of the payment recipient; the older the recipient, the larger the payments. A donor and his or her spouse may both be income recipients. An income tax deduction is allowed for a portion of the gift and some amount of the income payments may be tax free. If the gift made to establish the annuity is comprised of highly appreciated assets (stocks), a portion of the capital gain is not taxed and the remainder is reportable over time. The CGA is similar to a commercial annuity but does not result in as high a stream of payments to the donor.
A written pledge can be made for a future gift to be made by a donor. It is suggested that pledges are not written for more than 5 years outstanding.
The UA Foundation can accept gifts of personal property (e.g., jewelry, equipment, art, etc.) if the gifts benefit the University and/or can be converted to cash.
A gift of real property to the University of Alaska can provide the donor with significant tax benefits and can be of great use to the university either for its educational purposes or to be sold to provide income to support other programs. The University of Alaska Foundation accepts, manages and develops real property on behalf of the University. The gift to the Foundation may be restricted to assist specific programs at any institution or campus in the University of Alaska System. By making a gift of real property to the University a donor may be eligible for several tax benefits:
- A charitable deduction on the donor's federal income tax for the present fair market value of the property donated, up to 30 percent of donor's adjusted gross income. Deduction may be spread over a five-year period.
- Freedom from paying capital gains tax on the sale of your property.
- Freedom from property taxes donor would otherwise pay on the property.
Stocks and Mutual Funds
A donor may gift shares of common stock. The stock will be sold by the Foundation and the net proceeds used for the purpose specified. The University of Alaska Foundation can accept gifts of stock in several ways. Contact CFOS Development Officer Teresa Thompson for more information.
Trusts, Life Estates, or Bequests
The specific tax benefits of these three types of gifts vary greatly depending on the individual financial situation of each donor.
Trusts. A person may donate property to a trust he or she has established with the Development Office, which will then pay the donor an annual income from the earnings of the property for the rest of his/her life.
Life Estate. A person may donate property to the Foundation and be given a life estate so that he or she may continue to live in and maintain the property until his/her death.
Bequests. A donor may leave real property to the University in his or her will by simply adding a paragraph or a codicil to the will which identifies the property he/she wishes to give and the University of Alaska Foundation as the recipient.
What is a Bequest? A bequest is a section of a will which directs the executor of the estate to make a gift from the donor's assets to the person or institution of his/her choice after he/she dies. Bequests may be used to provide gifts of money, real estate, stocks, works of art, jewelry, etc. Bequests may also be used to establish charitable trusts which can provide funds for heirs and at the same time set aside funds for the University.
Tax Benefits of Bequests. Property and assets are subject to an estate tax when a person dies. The tax ranges from 37 to 55 percent of the value of the estate after certain deductions are subtracted. One of the few deductions which are allowed are those for gifts made through a will to a charitable organization like the University. Thus, depending on the value of the estate and a person's own financial situation, bequests can result in major tax savings for the estate. Potential donors should consult with their tax accountant as to how a bequest will affect their estate taxes.
Ideally a bequest should be completed only after consultation with both the University and an attorney so that the donor can be sure that the bequest will accomplish the purpose envisioned.
For more information on giving to the UAF College of Fisheries and Ocean Sciences, please contact Teresa Thompson, CFOS Development Officer, at firstname.lastname@example.org, or 907-474-1867.