Gift Planning

A deferred gift is simply a commitment made today that will provide future benefits to the University.

Deferred gifts accounted for 12 percent of all giving to Penn State in 2007–08. The University benefited from more than $8 million in gift annuities, charitable remainder trusts, and other life income gifts. Such gifts carry substantial income, estate, and gift tax advantages. In addition, they are often designated to establish endowments, which offer perpetual support for programs designated by donors. Endowment funds are usually named for donors or other individuals specified by donors.

One of the easiest ways for benefactors to ensure that their financial support will continue for years to come is by including Penn State in their wills. This past year, Penn State received more than $13 million in realized bequests from estate distributions, primarily designated for endowments.

Benefactors can work with the University to create a Statement of Intent, a simple document that indicates how the funds are to be used. Bequests, for example, are typically made in several ways: A specific amount, a percentage of an estate, or the entire remainder of an estate can be left to the University. One can also create a contingent bequest that specifies monies will come to Penn State upon the occurrence of certain circumstances. For example, a bequest can go to an individual or come to Penn State in the event the person named is no longer living. Bequests can be directed to a specific purpose or designated as "unrestricted" to Penn State.

An deferred gift can also perpetuate current giving. This is an effective way to transform an existing gift into an enduring legacy. For example, if a benefactor's current giving is $5,000 a year, the creation of a $100,000 endowment through a bequest can generate approximately $5,000 in income annually so that current giving continues indefinitely. Such a gift serves as a lasting tribute to one's belief in higher education and as the capstone of one's legacy to Penn State. Thus, the impact of a benefactor's generosity extends far beyond a lifetime.

A gift to Penn State through a will or a life income gift may have significant income tax benefits and qualify for an estate tax charitable deduction. For information about making a planned gift, contact Michael J. Degenhart, Director of Gift Planning, The Pennsylvania State University, 214 The 103 Building, University Park, PA 16802-7001; 1-888-800-9170; E-mail plannedgiving@psu.edu

Deferred Giving in 2007-08

Realized Bequests	$13,312,477
Gift Annuities	$2,016,841
Charitable Remainder Trusts	$6,067,917
Charitable Lead Trusts	$139,511

Deferred Giving 1998-2008 (Year Ending June 30)