How to establish an endowment

There are many ways to establish an endowment. In all cases, you may make a single gift or fund an endowment over a number of years using any combination of the following options:

Gifts of Assets

The simplest way to establish an endowment is through cash gifts. But creative gifts of assets can include stocks, bonds and property such as real estate or artwork. You may also gift life insurance or name the School as a beneficiary of your policy. These gifts provide you with charitable deductions and may offer additional tax savings.

Gifts by Will

You may also establish an endowment through various types of bequests. In doing so, you may secure a charitable estate tax deduction for the value of your planned gift. Best of all, your endowment will support the IU School of Medicine for years to come.

Gifts That Pay You Income

Do you want to establish an endowment but worry about having enough income for yourself and your loved ones? Life income gifts, such as gift annuities and charitable remainder trusts, can provide you with a regular income stream, significant tax savings, and the satisfaction of supplying the IU School of Medicine with much-needed resources.

The Charitable Lead Trust

Perhaps you want to establish an endowment and pass on assets to those who are dear to you. Through a charitable lead trust, you can accomplish both goals. Under this giving option, you irrevocably transfer assets to a trustee and provide that payments be made to the IU School of Medicine for a certain number of years (or until the end of your or another’s life). Then the principal is distributed to your children, grandchildren or other heirs at gift- and estate-tax rates that are greatly reduced.

Gifts of Retirement Plan Benefits

You may consider using retirement plan benefits to establish an endowment to support the IU School of Medicine. Because of the estate- and income-tax treatment of retirement plan benefits, the cost of your gift to your estate and heirs is often relatively small.

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