Creating a Scholarship Fund
The Dickinson State University Foundation provides various options to assist the students at Dickinson State University through the establishment of a scholarship fund. The following are the usual options that donors use to establish their scholarship fund.
· Establishment of Endowed Scholarship Fund
In order to establish a restricted named endowed fund, the initial contribution(s) must be a minimum of $25,000. If the gift(s) is less than $25,000 and the donor wants to grow the fund to endowed status, the donor must have intent to build the fund to this level within a five-year period or the gift will be spent for its restricted purpose. The principal balance will not be touched to fund the scholarship as it is protected for perpetuity.
· Establishment of Annual Scholarship Fund
An annual scholarship can be established through an annual commitment (example: $500 per year), or can be funded by a large amount up-front for the Foundation to award over a period of time (example: a $2,500 gift provides a $500 scholarship per year for 5 years.)
· Establishment of Annual Scholarship Leading to Endowed Scholarship
This option allows you to award annual scholarships while building your fund to the minimum endowed principal of at least $25,000.
Gifting Options
· Cash, Check or Credit Card Gifts
· Tangible Personal Property
· Publicly Traded Stock or Security Transfers
· Real Estate Property
· Oil, Gas and Mineral Rights
· Bargain Sales
· Pledges of support for up to 10 years
Deferred Giving
The Dickinson State University Foundation also accepts deferred type giving. The Foundation provides professionals to assist you in planning your gift. Recognizing the highly private nature of such planning, all inquiries and communications are held in strictest confidence. Types of deferred giving accepted by the Foundation include:
- Bequests
- Life Insurance
- Life Income
- Unitrusts and Annuity Trusts
- Gift Annuities
- Personal Residence with Retained Life Estate
Planned Giving
The term "planned giving" refers to charitable gifts that require some planning before they are made. Planned gifts are popular because they can provide valuable tax benefits and/or income for life. Whether a donor uses cash or other assets, the benefits of funding a planned gift can make this type of charitable giving very attractive to both the donor and the Dickinson State University Foundation.
- Bequest - When a donor decides to leave assets to the Dickinson State University Foundation in their will, they are making a bequest. The donor's estate will receive a charitable estate tax deduction at their death, when the gift is made to the Foundation.
- Gift Annuity - A gift annuity is a contract between the Dickinson State University Foundation and a donor. In return for a donation of cash or other assets, the Foundation agrees to pay a fixed payment for life or a specified time period to the donor. The donor also can claim a charitable tax deduction. Income from a gift annuity can be deferred for a period of years. Deferred gift annuities are often set up by younger donors to supplement retirement income.
- Charitable Remainder Trust - This trust makes payments, either a fixed amount (annuity trust) or a percentage of trust principal (unitrust), to whomever the donor chooses to receive income. The donor may claim a charitable income tax deduction and may not have to pay any capital gains tax if the gift is of appreciated property. At the end of the trust term, the Foundation receives whatever amount is left in the trust.
- Retained Life Estate - A donor may make a gift of his personal residence or farm to the Dickinson State University Foundation and retain the right to live there for the remainder of his or her life. The donor receives an immediate income tax deduction for the gift. At the donor's death, the Foundation can use or sell the property.
- The Charitable Lead Trust - This is a trust in which the income, or “lead” interest, is paid to the Foundation, and the “remainder” interest is given to one or more non-charitable beneficiaries, who could be either the donor or family members.
- Other Charitable Gifts - The acceptance of charitable gifts such as livestock, frequent flyer miles, gold coins, leased property, or time share interests will be considered on a case-by-case basis.
Legacy Society
This society is established to recognize those who have included the University in their wills, or as a beneficiary of an insurance policy or trust. A revocable gift of a remainder interest or other contingent gifts will also qualify the donor for membership in the Legacy Society.
Questions?
Contact Lindsey Kubal
Financial and Database Manager
(701) 483-2004 or
kubal@dsufamily.com