Messenger - Vol. 1, No. 1, Page 45
Fall 1991
1990-91 Report of Private Support
How to make your gift to the University of Delaware
     The lasting strength and continuing growth of the University
depend greatly on the generous support of alumni and friends. Your
gift plays a vital role in helping the University achieve its
teaching, research, and public service missions today-and in the
     There are a variety of common ways in which gifts may be made to
the University. By carefully planning your gift, you may be able to
take advantage of substantial tax and financial benefits. These
advantages may allow you to support the University to a much greater
extent than you believed possible.
     In planning your gift, you may find that it is advantageous to
contribute assets other than cash. You may also structure your gift to
take effect in the future, and you can even retain an income stream
from the gift asset for your lifetime and/or the lifetime of another
person. As you plan your future gift, we hope you will speak with
representatives about your plans and about the purposes which you
would like your gift to serve.

How do I make a gift of cash
     Your gift is tax deductible up to fifty percent of your adjusted
gross income, when you itemize. If you cannot make use of the entire
deduction in the year of your gift, you may carry it forward for up to
five additional years. Checks should be made payable to the University
of Delaware.
     A cash gift of $1,000 provides a charitable income tax deduction
of $1,000. If you have a marginal tax rate of 28 percent, the actual
cost of the gift to you is only $720, due to the tax savings provided
by the charitable deduction.

May I donate stock?
     Yes, this can be a very attractive method of giving. There are
two benefits for most donors for gifts of appreciated securities held
long term (i.e. held at least one year and a day for assets acquired
after 1987):
     1. An income tax charitable deduction for the full fair market
value of the securities, and
     2. Avoidance of tax on the appreciation in value.
     The deduction is limited to 30 percent of adjusted gross income
in the year the gift is made, with a five-year carry forward of any
excess. (The appreciation portion of such gifts may be subject to the
alternative minimum tax. Please consult your tax advisor regarding
this matter.)

What other assets may I give?
     You may donate other capital assets, such as stock in
closely-held companies, real estate, royalty interests, patents and
tangible personal property (works of art, collections, books, jewelry,
etc.). Federal income tax savings may be generated by virtue of the
charitable contribution deduction, and future estate taxes and
administrative costs may be reduced significantly.

What about life insurance?
     You may generally donate insurance by naming the University
irrevocably as the owner and beneficiary of a policy on your life. The
present cash surrender value of the policy generally has been
deductible as a charitable contribution. Your continued payment of the
premiums also has generally been deductible. A paid-up policy
generally yields a charitable deduction equal to its replacement

Can my company make a gift?
     Yes, your company-a partnership or corporation-can make a gift to
the University in your name, realizing tax savings for the company.

How do matching gifts work?
     Many companies have programs through which the company matches
your gift to the University. Some companies will double or triple the
amount of your gift; some match life-income gifts, as well as outright
gifts. There is usually a ceiling on the amount a company will give in
one year. By planning your contributions over a number of years, you
may be able to add a significant number of corporate dollars to your

How do I go about making a gift through my will?
     The University receives vital support through charitable bequests
from generous alumni and friends. A charitable bequest may provide
substantial estate tax savings. You may name the University as a
beneficiary or contingent beneficiary, and it is also possible to
provide under your will for the University to receive the gift only
after the gift assets have been used to provide lifetime income for a
family member or other individual.

How does a life income gift work?
     The University's life income plans include the pooled income
fund, the charitable remainder unitrust and the charitable remainder
annuity trust. All of these plans enable a donor to make a substantial
gift of income-producing assets, while retaining income from those
     Under life income plans, the donor irrevocably transfers assets
to the University as trustee (or to an independent trustee) and
receives income for his or her lifetime, or for the lifetime of any
other beneficiary the donor designates. At the end of the surviving
beneficiary's lifetime, the remaining trust assets are available to
the University for its general educational purposes. Income
distributions may also be limited to a term of years.
     These life income plans offer a number of attractive benefits. A
portion of the gift's value, depending upon the terms of the trust and
the ages of the income beneficiary(ies), is a tax deductible
contribution. In addition, donors may actually increase their
spendable income through careful planning of a life income gift. There
are also potential gift tax and estate tax benefits. A donor may also
contribute a residence or farm while retaining the right to occupy the
property for life or for a term of years, and receive an income tax
charitable deduction at the time the arrangement is made.
     A person who has included the University as a beneficiary in a
will, but who anticipates no lifetime need for the principal of the
fund, may find it more advantageous instead to give all or a portion
of these assets to the University now under one of these life-income

If you are considering a gift to the University and have any
questions, please call or write:
     Louis J. Beccaria, Ph.D.
     Director of Development
     Academy Building
     University of Delaware
     Newark, DE 19716
     Phone: (302) 451-2104

For more information on bequests, life-income gifts, or gifts of
capital assets, please call or write:
     Paula M. Tilmon, Esq.
     Development Associate,
     Planned Giving
     Academy Building
     University of Delaware
     Newark, DE 19716
     Phone: (302) 451-2104