Endowment Gifts
A gift to an endowment fund allows a donor to have an enduring charitable impact.
An endowment gift will support the university's mission on a long-term basis and is a particularly powerful way to:
- Enable long-term planning and program expansion.
- Ensure the continuation or establishment of a particular program or area meaningful to the donor (e.g., a scholarship fund).
- Allow a donor to specify how their gift will be utilized over time.
An endowment gift works like this:
- The donor can make an outright gift or donate property to create an endowment fund now, or makes a gift to establish an endowment fund in their will or trust or through a beneficiary designation. The donor can even create or contribute to an existing endowment fund by setting up a charitable gift annuity that first provides a fixed lifetime income for the donor and/or someone else (two people maximum).
- The donor may choose a fund established to support a meaningful program, or scholarship, or a fund that impacts the university's general mission.
- The gift qualifies for a charitable income tax deduction (assuming the donor itemizes).
- The endowment fund, for the benefit of UMass Law, combines with the UMass Foundation's pool of assets to grow through professional investment management.
- Only a stated percentage of the value of the fund is distributed each year to support the designated program or area, meaning the gift becomes perpetual and self-renewing. This increases the donor’s impact and helps UMass Law accomplish its mission far into the future.
Establishing an endowment fund
Contributing to an existing endowment fund is an easy and meaningful way for a donor to make a lasting impact—but it’s not the only way. If your client would like to make a legacy-creating gift with an outright cash donation or with a gift in their will or trust, they can create their own endowment fund. This gives the donor the freedom to support and sustain the area that is most meaningful to them. If your client would like to consider creating an endowed fund, please reach out to us so we can start a conversation about how to best help them meet their charitable goals.
Evaluate the fit.
A gift to an endowment fund may be a particularly good option for those who want to:
- Make a lasting impact on the university
- Ensure the continuation of a particular part of UMass Law's mission (say, a specific program, area, or scholarship)
- Qualify for a charitable income tax deduction
See how it works.
Naomi, age 80, has given regular annual gifts of $4,000 to UMass Law since she retired at age 65. This year, however, she’s been thinking about her legacy. She decides to make a $100,000 gift to establish a scholarship endowment fund in memory of her late husband, Ken. Not only will her gift generate approximately the same annual donation ($4,000, assuming a payout of 4%), but Naomi knows the fund will grow over time and her gift will help sustain something that meant a lot to Ken.
Because she is also passionate about UMass Law, Naomi talks to her family and friends about her gift. Several of them make their own contributions to the endowment in Ken’s memory, creating an even larger and lasting impact.
Consider the timing.
While a donor can contribute to an existing endowment fund easily at any time, creating a new fund will take longer.
The UMass Dartmouth Advancement Team can help.
We would love to help you and your clients determine the best way to provide long-term support for the parts of our mission that mean the most to them. Please reach out to start a discussion!