One-time or Annual Giving
Whether you support the Annual Fund or your favorite program, your gift to Friends University touches the entire Friends community. Every student, faculty and staff member benefits from your generous support.
In short, Friends University is a learning and teaching community that is committed to providing opportunities both inside and outside the classroom to make a difference in the world today and for generations to come.
Support the Friends community with your gift.
Planned or Deferred Giving
Plan Now to Impact the Future
Friends University has a long history of generous and creative people who had the vision and intention to see the University become nothing less than great through their planned gifts. As a result, our endowment fund is able to provide student scholarships, hire and retain capable faculty and maintain facilities that match our innovative programs of excellence.
You can plan a gift with great outcomes.
- Charitable Gift Annuities (CGA) – one of most common options for charitable giving largely because of the significant benefits they offer to the giver. First, they provide a lifetime of income for the donor and/or designated beneficiary. Regardless of how long the beneficiary may live beyond expectancy, the income from the annuity is guaranteed by the organization who sold it. Second, the majority of the income is tax-free. The initial annuity funds are invested, and the portion of the income that comes from those investment returns is taxed to the donor as regular income. However, most of the income is simply a return of principle from the initial annuity amount. That portion, often 75% to 80% of the income, is returned to you tax-free. Third, the annuity provides a large income tax deduction, which can be spread out over multiple years by the donor. And fourth, the Effective Payout Rate of the annuity is often dramatically higher than rates offered on CD’s, savings accounts, etc.
As an example, a single $50,000 gift from an individual in their 70’s can create an income tax deduction of nearly $25,000 PLUS estimated life-time income of over $35,000 at an effective payout rate of over 8% PLUS an estimated $50,000 gift to charity with no probate fees or estate taxes after the death of the donor. That is a total $110,000 benefit from a $50,000 gift!
Call the Office of Planned Giving at 316-295-5820, or enter your own illustration of what the benefits would look like for your situation.
- Charitable Remainder Unitrusts – One of the greatest benefits of the Charitable Remainder Unitrust (CRUT) is that the donor does not need to have cash-on-hand to receive the benefits of this form of giving. Those benefits include:
- A lifetime of income
- Immediate income and gift tax deduction for the present value of the ending balance of the trust’s assets which are designated for the charity
- CRUT’s are exempt from tax on investment income
- Income can be deferred until after retirement to tax take advantage of lower tax brackets
Common asset types for funding a CRUT are productive farm ground, an investment portfolio, rental property, an operating business, etc. Rather than selling these assets to generate cash to open an annuity, the donor simply transfers their income-producing assets into a trust.
As an example, consider the case of Mrs. Scarlet. Mrs. Scarlet’s husband had passed away and left her with farm ground that was worth $1 million. She had no need for the farm ground and didn’t want the hassle of dealing with it, so she assumed she would just sell it.
The problem is that if she sold that land, she would have incurred a capital gains tax hit of $180k. Then she would probably have taken the remaining cash and invested it in the stock market which his historically enjoyed returns of between 7% and 8%. Her income taxes on that income create a $5700 tax bill. So in one year, she has paid $185,700 – or over 18.5% – in taxes.
Instead, Mrs. Scarlet transfers the property into a Charitable Remainder Unitrust. Rather than paying $180k in capital gains tax, she’s going to get a $309k tax deduction, which she can spread out over 5 years as needed. The trust sells the land instead of Mrs. Scarlet selling it. And because the trust doesn’t pay capital gains, the market/sale price of $1 million means that the full $1 million is available to invest. The unitrust is required to pay a minimum of 5%/yr in distributions, which means that Mrs. Scarlet is going to get an income of $50k instead of the $16k from selling the property. The main portion of the gift will go to charity when Mrs. Scarlet passes away, but with the dramatically higher income she has received, she pays the premiums on a life insurance policy on herself that will go to her children and grandchildren with no tax upon her death.
Because the CRUT is a trust, and therefore a legal vehicle, the Friends University Office of Planned Giving cannot set it up for you. But we can certainly review your situation and advise you so that you are prepared to speak to your attorney about this valuable option. Call 316-295-5820 to set up an appointment!
- Charitable Lead Trust – Because a Charitable Lead Trust has several different iterations depending on the time-frame over which distributions are made, who the beneficiary of the trust is, etc., it is difficult to make blanket statements about benefits of the CLT. However, one of the over-riding benefits for which CLT is created is to have the option of giving to charity using non-cash assets (farm ground, rental property, etc.) while retaining those assets instead of having them sold. This is particularly advantageous to farming families with land that has been in their family for generations, or a small business which they want to pass on to a child or grandchild. Unlike a Charitable Remainder Unitrust where the asset is sold while the donor continues to receive income, a Charitable Lead Trust retains the asset and gives the income to the charitable organization. A common example would be a donor with a new grandchild. The grandparent might transfer a portfolio of bonds into a newly-established Charitable Lead Trust. Bonds are particularly useful in CLT’s because they are generally fixed-income instruments and CLT’s require a fixed distribution. A charity receives the income distributions for 22 years, at which point the trust dissolves and the bond portfolio transfers to the new college graduate who can now enjoy the income as they embark on their new life. Because this option involves the use of a trust, an attorney is required to establish the CLT. To get more information about the Charitable Lead Trust and determine if it is right for you, please contact the Friends University Office of Planned Giving at 316-295-5820.
- 401k’s and IRA’s – 401k’s, 403b’s and IRA’s are great retirement vehicles for working individuals. But sometimes once people reach retirement, they discover that their other investments and income are sufficient for their financial needs. In these cases, it might make sense to look at the benefits of gifting these retirement accounts as part of your estate plan.
What is nice about using these cash-equivalent options is that they can be residually granted, i.e. you can use as much of the funds during retirement as needed, with any unused funds going to Friends University when your estate is settled.
To make Friends University aware of our inclusion in your estate plan or for information about how these residual proceeds should be used, contact the Office of Planned Giving at 316-295-5820.
- Life Insurance – A permanent life insurance policy can be a crucially important part of an estate plan in several ways. Yet many people buy term insurance in their twenties when they have a young family to protect and then let it expire at the end of the term when their children are out on their own. Probably the greatest benefit of including permanent life insurance in your estate is the ability for the insurance proceeds to pass to your heirs tax-free. This allows you to then give assets such as land or financial accounts that would otherwise have been taxable to charitable organizations who are able to accept those assets without a tax burden due to their 501c3 status. Life insurance can also be used in conjunction with other giving options such as a Charitable Remainder Unitrust to ensure that both your children and your favorite charities are protected while avoiding taxes at the same time. Finally, a permanent life insurance policy frees you up to take full advantage of your financial assets during retirement. With a life insurance policy designated to your favorite charity, you can enjoy all of the fruits of your years of working without worrying whether or not there will be enough left to support your charitable causes. To make Friends University aware of our inclusion in your estate plan or to get information on how your life insurance proceeds designated to Friends University should be used, contact the Office of Planned Giving at 316-295-5820.
- Wills or trusts – One of the most common fears in planned giving is the concern that donors have no way of knowing what their future needs might be with housing, health care, supporting children, etc. The easiest way of addressing this very legitimate concern is to include Friends University as a beneficiary of a percentage of your estate, rather than a set dollar amount. In so doing, most donors feel a sense of relief in not having to set aside funds that they may need for charity. A gift of 5% or 10% of an estate is valid regardless of the size of the estate, and alleviates the concern over future financial needs by the donor. Including Friends University in your will or trust is the highest compliment you can give. And it is an honor that we do not take lightly. Most important to us is the ability to honor your wishes with the gifts that you generously share. While we will always respect the anonymity of your gift if you would prefer, the knowledge that you are including Friends University in your planned or deferred giving allows us the opportunity to ensure that we understand how you would like your gift to be used. For instance:
- Do you want to direct the funds to a particular school or program, or leave them undirected? If undirected, President Carey and our Board of Directors will use the gift in our area of greatest need at that time.
- If directed to a particular school or program, do you want the funds to be used for operating expenses? To provide scholarships? To purchase specific assets such as new sod for the football field or supplies for Fine Arts?
- If your wish is to provide scholarships to assist other students in attending Friends University, do you want it to be an endowed scholarship or a current scholarship? How much should the scholarship be and to how many students each semester should it be awarded? What are the student requirements to receive the scholarships with regard to GPA, area of study, extracurricular activities, etc.?
To work though these questions and many more, contact the Office of Planned Giving at 316-295-5820.
- Heritage Society – The Friends University Heritage Society is reserved for those whom have made the highly personal choice to include Friends University in your estate giving though a will or trust, or in your deferred giving through use of a Charitable Gift Annuity, Charitable Remainder Unitrust, etc. Once you make us aware that we are included in your plans, membership in the Heritage Society is automatic and you will be eligible to participate in a variety of events throughout the year which are open only to Society members. You will also receive the Legacy newsletter, and be listed in our annual donor report and alumni communication as a legacy donor. For more information on the Heritage Society or to make us aware that we are included in your estate plan, contact the Office of Planned Giving at 316-295-5820.
Gifts of Cash
With all of the financial instruments and non-cash giving options available to accommodate every household’s situation, cash giving remains the overwhelming choice for the majority of our donors. Checks may be sent to:
Office of University Advancement
2100 W. University Ave.
Wichita, Kansas 67213
Gifts may also be made online. Gifts may remain non-directed, allowing the funds to be used in our area of greatest need or they may be directed to a specific usage such as funding an existing endowed scholarship. However, directed gifts are commonly reserved for larger amounts over $500 due to the administrative costs associated with them.
Call the Friends University Advancement Office at 316-295-5803 with questions about how your gift of cash can be best used toward our important mission.
Gifts of Stock
Donating investment portfolios has become a much more common way of giving to charity in recent years because of the benefits to both the donor and the charity. The two main benefits for the donor are the avoidance of capital gains, which would otherwise take a significant portion of the appreciation which the stocks have realized and the ability to take a tax deduction on the full fair market value of the stocks up to 30% of your adjusted gross income.
As an example, let’s consider the case of Mr. and Mrs. Green. The Greens have a mutual fund portfolio with an original cost basis of $20,000. Today, that fund is worth $50,000. If they were to sell the mutual fund with the intention of donating the proceeds to charity, they would pay over $7,000 in capital gains taxes leaving a charitable deduction of just under $43,000. The actual value of their charitable deduction – $9,833.
Instead of selling the stock, Mr. and Mrs. Green spoke to the Advancement Department at Friends University and gave the stock outright. By avoiding the capital gains tax hit, the Greens were able to take a charitable deduction equal to the full $50,000, leaving a real value of their charitable deduction of $19,800, more than twice the value they would have received had they sold the stock themselves.
Gifts of stocks, bonds and mutual funds can be given during the lifetime of a donor and can also allocated to Friends University as part of an estate plan in your will or trust. For answers about how to most efficiently make your gift of stock to Friends University, contact the University Advancement office at 316-295-5803.
Gifts of Real Estate
Like gifts of stock, donating appreciated real estate is a great way of avoiding what would otherwise be a dramatic tax hit. Not only will capital gains be eliminated but the tax deduction for the value of the land can significantly improve your income tax picture.
Take the example of Mr. and Mrs. Smith. The Smiths started out farming when they got married 65 years ago. Due to limited means and man-power, all they could afford was an eight-acre piece of land that was oddly-shaped and had a small stream curving through it that made planting and harvesting a challenge. Over the years, they were able to buy numerous full sections of land and had stopped farming their original eight acres decades ago. But they never sold the land for sentimental reasons. Now, dealing with several health issues and advancing age, the Smith’s started divesting their estate, and wanted to give the land to Friends University. Their financial advisor pointed out that the land cost $45/acre when they were married but today was worth almost 100 times that amount. As a result, capital gains taxes would apply to nearly the entire amount of the sale.
By making the real estate gift outright instead of selling and giving the cash to Friends, the amount of the gift they could afford to make went from $28,500 to $36,000, a sizable difference to nearly any charitable organization.
Gifts of real estate can be made during the lifetime of a donor and can also be included in your will or trust for allocation in your estate plan. For more details about how to give appreciated real estate to Friends University, contact the University Advancement office at 316-295-5803.
Gifts of Non-cash Assets
- Coin collections
- Stamp collections
- Farm commodities
- Antique cars
People often choose not to make charitable gifts not because they don’t want to or because they don’t support the organization’s mission, but because they think they can afford to do so. Typically the reason they feel this way is because they don’t have a large bank account. But in truth, many people have non-cash assets that could just as easily serve to help a not-for-profit organization fulfill their purpose.
At Friends University, we have partnered with the Wichita Community Foundation to serve as a flow-through organization for more unusual assets like that Model T that’s out in the garage, the stamp collection that your grandfather left you in his will, or the truckloads of grain that you’re taking to market. While each of these kinds of assets will have their own peculiarities that will need to be considered, each also can offer great benefit to you as the donor.
As an example, giving farm commodities such as wheat or beef cattle not only allows you to reduce your income taxes by not realizing the proceeds from your sale but they still allow you to claim the expenses of fertilizer, seed, feed, etc. that were needed to grow the wheat or raise the cattle.
While non-cash assets may not be the first thing of which people think when considering a charitable gift, it is a wonderful and meaningful way for everyone to get involved in supporting this wonderful institution. If you are passionate about Friends University but aren’t sure how to give, call the University Advancement office at 316-295-5803.