Often, the word strategic conjures up notions of complexity, sustained effort, and potential resistance. From a proposal addressing climate change to the Xs and Os that diagram a football play, strategic planning can indeed be challenging. Sometimes, however, a strategic plan can be simple—particularly when it comes to charitable giving to support Indiana University. Let’s explore strategies to find one that works best for you.
Developing a strategy for making rewarding charitable gifts starts with recognizing what is important to you and identifying your personal goals for helping Indiana University. Here are three simple steps to help you develop a plan to maximize your gift’s impact:
For some donors, a charitable goal can be as simple as acknowledging a general commitment: “I believe in Indiana University’s mission and I want to support their work.” For others, the goal may be more specific: “I believe in IU’s mission and I want to support their work, specifically in the area of.” Finally, some donors go even further by thinking in terms of maximizing their personal philanthropic impact by carefully considering the gift planning options that are available. “I believe in IU’s mission and I want to support their work, specifically in the area of, and I want to explore ways to maximize the impact of my giving.” Wherever you may be on this planning spectrum, knowing what is important to you points the way to making a satisfying gift.
Once your charitable goals are clear, the next step is to consider the timing of your gift to IU. Do you want to make an impact today or in the future? Or perhaps you would like to do both.
Whatever timing you have in mind, there are multiple ways to give. Knowing the particular features and advantages of various gift options lets you select the charitable strategy that best fits your circumstances and goals. Some options allow for a great deal of flexibility, making it easier to plan and easier to make any needed adjustments down the road.
As you consider ways to make a philanthropic impact at IU, keep in mind that there are specialists who can help. Attorneys can guide you through will and legacy planning, and financial advisors can help you determine how to make the best use of your assets.
In addition, IU Foundation representatives are available to help you and your advisors explore and implement giving options that are most meaningful to you. Please contact us any time you have questions.
If your desire is to provide immediate support for our work at IU, there are easy, effective ways to reach your goal. Here are four strategies to explore: giving cash, appreciated stock, donor-advised fund grants, and a gift from your IRA.
The simplest way to make a gift is to write a check or use your credit card. Every gift furthers our work, no matter the amount. Because so many donors make these types of gifts every year, the combined impact is an extremely significant and vital part of our ongoing work. Gifts using cash, check, or credit card are deductible if you itemize—we will send you the proper acknowledgment of your gift for income tax purposes.
Because the 2017 Tax Cuts and Jobs Act raised the standard deduction amount for individual taxpayers, you may want to consider “bunching” your donations—combining several years’ worth of gifts into the same year so you can benefit from itemizing your tax return. Your advisors can help you determine if this is a good approach for you.
A gift of appreciated stock held longer than one year provides you with two helpful tax benefits. First, like all charitable gifts, a gift of appreciated stock is deductible if you itemize your return. In fact, you can deduct the full value of the stock no matter how much it has increased over time. For example, if you purchased stock for $5,000, held it for over a year, and it is valued at $10,000 when you make your gift, you can deduct the full $10,000.
The second tax benefit is also important. When you make a gift of appreciated stock held for more than a year, you owe no capital gains tax on the appreciated amount.
Because a grant from your donor-advised fund comes from assets you have already set aside for charitable purposes, the gift does not impact the funds you have available to meet current needs and future goals. You can target a specific IU program with your grant and you will know that you are making an immediate impact.
Please contact us if you are considering this type of gift, and we can help you ensure the distribution from your donor-advised fund goes smoothly. We will provide transfer information and confirm your intention if you wish to direct your grant to a specific purpose.
If you are age 70½ or over, you are eligible to make a transfer directly from your IRA to Indiana University Foundation (a qualified charitable distribution or QCD). This is a highly effective way to give because you pay no tax on the distribution.
A QCD is a simple gift to make at any time during the year. Just instruct your IRA custodian to make a transfer directly to us. Transfers up to $108,000 (annual aggregate limit in 2025) qualify for favorable tax treatment.
There is also another QCD option. You may make a one-time QCD of up to $54,000 (in 2025) to fund a new charitable remainder trust or charitable gift annuity. No tax is due on the distribution, and it counts toward your RMD if one is due. Spouses may each contribute up to $54,000 (in 2025) from their own IRAs to create a single charitable remainder trust or a joint-life charitable gift annuity.
Again, although there is no tax deduction for the gift, the distribution is excluded from your income for federal tax purpose. In addition, the amount transferred counts toward your required minimum distribution if one is due (generally age 73 and older), which can make this a wise alternative to a cash gift. A QCD lets you meet your required distribution, pay no tax on the distribution, and fulfill charitable goals by making an immediate impact on our work.
For many of our supporters, a gift that is planned now but completed in the future is the best way to meet charitable goals. These gifts allow you to retain lifetime control of the gift assets (you can use them if you need them) while knowing you have planned a gift that can make an important impact at a later time. Two options to consider are giving a gift in a will or living trust or giving through beneficiary designations.
Many donors want to make the largest possible impact on our work at IU, but also want to keep assets available in case they are needed. If you are of this mindset, a gift to us through your will or living trust is a highly rewarding way to support work that is meaningful to you.
There are many simple ways to make a strategic gift, but investing just a small amount of additional time opens up further opportunities for meeting your charitable goals in satisfying ways.
In her late 40s, Celia named IU in her will to receive 10% of the value of her estate. At that time, she had two daughters about to enter college and a 12-year- old son. Years later, after her son completed college and graduate school, Celia revised her will so that we would receive 25% of the value of her estate. In her 70s, Celia revised her will yet again so that we would receive 40% of the value of her estate, with her children evenly splitting the other 60%. As her personal financial situation and goals changed throughout her lifetime, this giving strategy allowed Celia to plan a substantial gift, provide well for her children, and keep assets available in case they were needed for any reason.
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Of course, there are many other ways to designate a gift through a will or living trust, from gifts of a specific amount of cash or other property (such as real estate) to setting up a testamentary charitable trust to benefit us and loved ones. Let us know if we can provide additional information.
There are two important things to remember about beneficiary designations for your life insurance policies, bank accounts, and retirement plans:
Now is a good time to review beneficiary designations and verify that your assets will be distributed as you intend. Remember that you can name Indiana University as a primary beneficiary (first in line), contingent or secondary beneficiary, or a percentage beneficiary. Please be sure to use our full legal name in any designations.
Thank you for considering ways to make an impact on our mission at IU. As you can see, it doesn’t have to be complicated or difficult to make a difference—there are many simple charitable giving options that are both personally satisfying and strategically sound. Let us know if we can help you explore ways to reach your philanthropic goals.
The Indiana University Foundation solicits tax-deductible private contributions for the benefit of Indiana University and is registered to solicit charitable contributions in all states requiring registration. For more information, please review our full disclosure statement. Alternative accessible formats of documents and files on this site can be obtained upon request by calling us at 800-558-8311.
