Planned Giving Options
A basic list of planned giving options follows.
Many individuals choose to include DePaul in their will, providing for a percentage of their estate or a fixed dollar amount to be transferred to the university. Any bequest you make can be designated to a specific college or program within the university.
Recommended Bequest Language for Wills and Trusts
For unrestricted bequests, DePaul University recommends the following language:
"I give to DePaul University, an Illinois not-for-profit corporation having its principal offices in the City of Chicago, County of Cook, State of Illinois, the sum of $_______ or ________ percentage of, (or the remainder and residue of) my estate."
If the donor would like to designate the bequest to a specific program, DePaul University recommends the following language:
"I give ________________ to DePaul University, an Illinois not-for-profit corporation having its principal offices in the City of Chicago, County of Cook, State of Illinois, the sum of $_______ or ________ percentage of, (or the remainder and residue of) my estate, to be added to its general endowment fund (or to its general operating fund)."
"I give ____________ to DePaul University, an Illinois not-for-profit corporation having its principal offices in the City of Chicago, County of Cook, State of Illinois, the sum of $_______ or ________ percentage of, (or the remainder and residue of) my estate, to be used for the purpose of funding ________________ program in the College of ________________."
Regarding wills or trusts where the bequest is restricted for a specific purpose, DePaul University also strongly encourages the inclusion of the following language:
"If the need for funds for the purposes described above no longer exists at some future date, or if the above stated purpose should become illegal or improper, DePaul University may within its discretion use these funds for an alternative purpose, as deemed appropriate by the Trustees and executive officers of DePaul University."
Life Insurance Gift
Some donors choose to make DePaul the beneficiary of an existing life insurance policy. Others choose to name DePaul as the owner and beneficiary of an existing policy as they continue to pay the remaining premiums. This type of arrangement provides significant tax advantages. Still others make DePaul the owner and beneficiary of a paid-up life insurance policy, a type of gift that provides even greater tax advantages and has an immediate impact on the University.
Retirement Plan Gift
Donors can name DePaul as the primary beneficiary of a 403(b), 401(k), or other tax-deferred retirement plan. The IRS regulations do not assess any estate taxes at the time of death if such plans are given to a charity, such as DePaul University, versus significant estate taxes if the retirement plan goes to a family member.
Real Estate Gifts and Gifts of Intellectual Property
Many alumni and friends of DePaul own real estate, land, or valuable art work that may be transferred to DePaul for the purpose of making a gift to a specific program or college. Such gifts can provide significant income to DePaul now and in the future. Depending on the type of property and its present value, some donors turn these assets into charitable trusts that eventually endow scholarships for years to come. The IRS guidelines and DePaul University policy require that donors of real estate and intellectual property present a qualified appraisal, and, in certain instances, a Phase 1 Environmental Study.
The Retained Life Estate
This type of gift plan allows the DePaul donor to deed his or her home to the University, but continue living in it for the rest of his or her life. A significant deduction may be taken at the time the home is deeded to DePaul, and the donor is recognized for this gift during his or her lifetime.
These gifts provide significant support for DePaul's future while they currently produce income for donors and/or their family members for a term of years, or for the rest of their lifetime.
Charitable Gift Annuity
Also known as the "CGA", the gift annuity is one of the safest and simplest of income-producing gifts. In exchange for a gift of cash or marketable securities, DePaul makes lifetime payments to you and/or a designated person. The minimum amount required to establish a CGA at DePaul is $25,000.
Charitable Remainder Trusts
Also known as "CRTs", these gift plans can provide tremendous financial and estate planning flexibility. CRTs can be a way of providing income for your retirement years and avoiding sizeable capital gains. Unlike charitable gift annuities, CRTs accept a large variety of assets and can be customized and invested according to your needs. Whether you favor the security of a specified payment provided by an annuity trust, or the fixed percentage of income offered by a unitrust, DePaul's planned giving experts can help you create a plan that is customized for your goals and needs. Currently, the minimum amount required to establish a Charitable Remainder Trust with DePaul University is $250,000. Such minimum requirements are subject to change and we encourage you to contact the Office of Planned Giving if you are interested in setting up a CRT.
Charitable Lead Trust
Also know as the "CLT", the Lead Trust is a great vehicle for the donor that wishes to maximize the amount they can give to their children and/or grandchildren and yet reduce tax liability. The CLT provides income to DePaul University for a term of years and then the trust assets pass back to the family. As such, CLT's are great gifts to capital campaigns. This gift usually requires the assistance of a financial and legal advisor. DePaul's Office of Planned Giving can help you and your advisors put together this unique philanthropic package. We encourage you to call us today.
Pooled Income Fund
Gifts from two or more donors are commingled for investment purposes, a share of units are allocated to each donor, and designated beneficiaries receive income for life.
If the donor intends to establish an endowed scholarship fund through his or her estate plans, the donor and/or the donor's legal advisors should contact the Office of Planned Giving at (312)362-5319, or via email at firstname.lastname@example.org .
PLEASE NOTE: This information is prepared exclusively for the information of friends and donors of DePaul University. Its purpose is to point out current tax developments that may be helpful in tax and financial planning. Donors should, of course, consult with their attorney as to the applicability of any ideas to their own situation.
Senior Director of Development for Gift Planning
Assistant for Planned and Principal Gifts