NO MATTER WHERE YOU ARE IN YOUR LIFE, YOU CAN MAKE AN IMPACT.
You’re a recent grad, just launching your career. You’ve put aside a little for your alma mater but wish it were more. It turns out your company matches employees’ charitable donations—and just like that, you’ve doubled your impact.
You’ve given to the annual fund for years, but you’re curious—could you get even more involved in your giving? You don’t have to look far before you realize there are many options for designing your philanthropy.
You’ve had an entrepreneurial spirit from the start—and now you own a company or a business interest. It feels like the right time to make that first big contribution, but your wealth isn’t sitting in a savings account. Then you learn that all kinds of assets—including illiquid business interests and preIPO shares—can be used to make a gift.
You are thrilled to see retirement on the horizon but eager to get the financial planning squared away so you can focus on the fun. What starts as a daunting puzzle actually becomes a rewarding chance to create a charitable legacy.
That’s the power of creative philanthropy—you have options. And often you have the ability to do more than you ever thought possible.
You know that Georgetown’s leadership in higher education and power to create positive change depend greatly on the generosity of our donors. That’s why so many of our alumni, parents, and friends give—to make possible everything we are and aspire to be.
But meaningful philanthropy isn’t just about why. It’s also about when, what, and how.
WHEN WOULD YOU LIKE TO GIVE?
Learn how you can give now, spread it out, or plan for the future. Page 4
2WHAT COULD YOU GIVE?
Explore the possibilities—from cash to stocks to gifts from an estate, and everything in between. Page 6
3HOW COULD A GIFT FULFILL YOUR GOALS?
Current use, endowed, or otherwise—design your philanthropy for meaningful impact. Page 10
For more information on the gift planning terms mentioned throughout this guide, please see the glossary on page 22.
Some philanthropists want to make a singular impact; others punctuate their lives with gifts of various types and sizes. Consider when you’ll want to flex your philanthropic muscle.
GIVE NOW
Outright giving is essential to sustaining Georgetown’s momentum. Whether you’re writing a check, donating appreciated securities, or sharing a lesstraditional asset, your gift will support the schools and programs that educate students to be reflective lifelong learners, to participate actively and responsibly in civic life, and to live generously in service to others.
SPREAD IT OUT
A multi-year pledge spread across up to five years can help you facilitate ongoing giving at a comfortable level with cumulative benefit and impact.
PLAN FOR THE FUTURE
Planned gifts are a powerful complement to outright giving and crucial to Georgetown’s long-term ambitions. Resourceful donors often find that the flexibility of a planned gift enables them to make a bigger gift than they thought possible while achieving their personal and philanthropic goals.
Early in your career? Planning for a lifetime of giving might seem premature, but the most forward-thinking philanthropists are starting young—and finding that the process is painless. Bequest intentions can be as simple as a few sentences, are revocable if circumstances change, and don’t compromise your cash flow, all while creating a lasting impact at the university you love.
If you’ve included Georgetown in your estate plans, please let us know! Understanding your goals in advance helps Georgetown ensure your gift can be used for the purpose you intend. In addition, we would love to be able to thank you for your generosity. Contact the Office of Planned Giving at plannedgiving@georgetown.edu or 800-347-8067.
SAMPLE PLANNED GIVING OPPORTUNITIES*
Bequests through a will or trust
Beneficiary designation on a retirement plan or life insurance policy
Charitable gift annuities (see page 19)
Charitable remainder, annuity, or lead trusts (see page 19)
Gifts of real estate, artwork, or collections (see pages 8–9)
Complex assets (see page 9)
*Some gift types may be subject to a review and approval process at the university.
Writing a check is always an option, but could you achieve more through creative giving? Could appreciated securities enable you to endow a scholarship? Is there a way to use a retirement account for a tax-smart gift now or as part of your estate planning? Do you have a business interest that could be an overlooked chance to create a philanthropic legacy?
There are countless ways to shape your gift; start by understanding these options.*
CASH
No surprises here. Make a gift by check, wire, or credit card—via the web, mail, or phone.
Giving from outside the United States? You may be able to significantly increase the value of your gift by taking advantage of tax-beneficial charitable giving options specific to your region. Please visit giving.georgetown.edu for additional details.
*Some gift types may be subject to a review and approval process at the university.
Increase your impact with a matching gift. Don’t forget—many companies and foundations will match the value of charitable gifts made by employees and their spouses, as well as board members and retirees. Ask your employer’s benefits team if they offer a match—or seek assistance from a Georgetown giving specialist at 202-687-1789 or giving@georgetown.edu.
Did you know?
If you have a donor-advised fund, you can of course use it to fund direct gifts to Georgetown during your lifetime, but you can also make Georgetown a remainder beneficiary for the future.
STOCKS, BONDS, AND MUTUAL FUND SHARES
Donating appreciated securities is a powerful—and too often overlooked—way to give while offsetting your personal tax liability. In gifting stocks, bonds, or mutual fund shares that you have owned for longer than one year, you receive the same income tax savings associated with a cash gift and avoid tax on any capital gains appreciation in the donated securities.
REAL ESTATE
Real estate can be a surprisingly flexible way to give. Whether you have a partial interest in—or complete ownership of—a principal residence or vacation home, a farm, a commercial building, a subdivision lot, or even unimproved land, you may have an untapped source of philanthropic support.
COMPLEX ASSETS
You were creative in building a business or hold seemingly illiquid assets, and now you’re able to be creative with your philanthropy. Careful planning can help you unlock the power of illiquid assets—restricted stock, private equity interests, carried interest, hedge fund interests, pre-IPO shares, part-ownership in emerging ventures, and other closely held business interests—to realize your philanthropic goals.
RETIREMENT PLANS AND INSURANCE POLICIES
Whether you’ve been saving for years or you’re just starting to build your nest egg, consider naming Georgetown as a beneficiary of a specific amount or percentage of your retirement account (e.g., IRA, TSP, SEP, 401(k), 403(b), ESOP). Retirement accounts can also be used to make outright gifts (if you are 70½ or older) or a testamentary trust for loved ones.
Life insurance also may be an affordable way to realize your philanthropic ambitions. It’s possible to name Georgetown as the beneficiary of all/part of a life insurance policy.
PERSONAL AND INTELLECTUAL PROPERTY
Could the rare books in your basement be used to complement Georgetown’s curriculum? A treasured asset may take on a whole new life in becoming a significant gift to Georgetown. Here are just a few of the inventive ways some donors create their philanthropic legacy:
• Artwork
• Books
• Collections
• Boats
• Patents
• Copyrights
• Oil and gas royalty interests
Georgetown has experience with a wide range of assets and would be pleased to help you explore the possibilities. Please contact us at 800-347-8067 or plannedgiving@georgetown.edu.
Did you know?
If you are 70 ½ or older, you can direct up to $108,000 (amount indexed annually for inflation) each year to charity from a qualified IRA. The distribution is tax-free and counts toward your annual required minimum distribution (if applicable)—with the added bonus of providing a gift to Georgetown. Note: distributions must be sent directly to Georgetown from your IRA administrator.
Did you know?
Some gifts of personal property, real estate, and other assets are given with the understanding that the university will retain them; others are given with permission to sell some or all of the gift in the future with the proceeds used to benefit the donor’s area of interest at Georgetown. If you decide to make this type of gift to Georgetown, your wishes would be discussed in advance and committed to by the university as part of a gift agreement.
Philanthropy is about translating your success into support for the people and places important to you. The best giving strategies take a holistic view, providing outsized benefit to all involved, but are chosen in advance by the donor with an eye toward how you want to have an impact.
GIFTS WHERE YOU SEE IMMEDIATE IMPACT
Current-use gifts—directly expendable funds—allow Georgetown to say “yes” to good ideas now and ensure continued growth as a leading global university.
Current-use funding complements the endowment and can be especially beneficial for start-up or other innovative programs, faculty research projects, and hands-on learning opportunities. Kick-starting initiatives with the human and financial capital to build momentum and measure success enables Georgetown to develop sustainable programs with lasting campus engagement.
“Ask Georgetown deans and directors what current-use funds allow them to be, and you’ll hear the same words again and again: nimble, agile, responsive, and innovative.”
—R. BARTLEY MOORE (F’87), VICE PRESIDENT FOR ADVANCEMENT
This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.
What is the Georgetown Fund?
The Georgetown Fund is the beneficiary of unrestricted gifts through our Annual Giving program. If you do not designate otherwise, your current-use gifts will automatically be assigned to the Georgetown Fund.
Georgetown directs 100% of Georgetown Fund gifts to 1789 Scholarships for undergraduate students. These scholarships are critical to fulfilling the university’s single highest philanthropic priority: ensuring access and affordability for all admitted undergraduate students.
This commitment—a direct outgrowth of the centuries-old Jesuit tradition of providing access to higher education— propelled Georgetown into the competitive ranks of the nation’s leading universities.
Increasing the number of scholarships funded through philanthropy helps fulfill the university’s commitment to bring the best students to campus, regardless of their ability to pay, while enabling Georgetown to seize additional opportunities to keep the school competitive.
Donors making a current-use gift may direct it to the Georgetown Fund in support of undergraduate scholarships, the Athletics Excellence Fund, the Medical Center Annual Fund, the Law Annual Fund, Mission and Ministry, or another area of interest. The distinct aspect of current-use gifts is that they have full and immediate impact.
GIFTS THAT ALLOW YOU TO PROVIDE PERMANENT SUPPORT
Endowment income is the principle source of dedicated, long-term financial support for the university. It lends fiscal stability and enables the university to make dependable, long-term investments in highquality academic programs and top faculty, as well as to ensure that the brightest students have access to a Georgetown education.
In growing the endowment—key to our ability to compete against other elite educational institutions—endowment gifts also increase the potential for larger investment returns through the power of compound interest.
AREAS SUPPORTED BY GEORGETOWN’S ENDOWMENT*
28% Other
22% Academic and Research Programs
21% Student Aid
17% Professors
9% Facilities
2% Library and Athletics
1% Ministry
*Corpus of pooled endowment, FY 2024
Source: Georgetown University Investment Office
HYBRID GIFTS: A POWERFUL COMBINATION
Some donors establishing endowments choose to commit a portion of their gift—or an additional annual gift—for current use, funding that can be distributed immediately in support of their goals as they are making pledge payments to build up an endowed fund.
The example on the opposite page shows how a hybrid commitment of $625,000, payable over five years, could establish a scholarship fund and begin providing direct scholarship support immediately—unlike a straight $500,000 endowment gift, where the named scholarship would be awarded after the pledge is fulfilled.
STRAIGHT ENDOWMENT EXAMPLE
HYBRID EXAMPLE
This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.
ENDOWMENT FAQS
What does it mean to establish an endowed fund?
How much money does it take to start an endowment?
When you create an endowment at the university—for instance to establish a scholarship or professorship—the money you contribute is invested in perpetuity and managed as a permanent financial asset to support your philanthropic objective. Each year, a portion of the fund is paid out—proportionate (over a period of years) to our investment earnings and currently about 5%—and used for the purposes the donor and the university agreed upon when the gift was made.
Georgetown has set different minimum funding levels for different types of endowments.
General
• $100,000 will establish an unrestricted endowment for a particular school or division.
• $100,000 will establish an endowment restricted to a specific purpose.
Financial Aid
• $150,000 will create a named and endowed scholarship fund that supports U.S. undergraduate students year after year.
• $1.5 million will create a named and endowed scholarship fund that supports international undergraduate students.
• $5 million will create a named and endowed undergraduate student cohort, with one student in each of the four undergraduate classes. That means every future Georgetown graduating class would have a Hoya Family Scholar.
Faculty
• $8 million will fund a named university professorship (appointment approved and bestowed by the university president).
• $5 million (or more) will fund the creation of a named chair supporting a new position in a strategic growth area (approved by dean and provost/EVP).
• $3 million (or more) will establish a named chair supporting an existing position; donor may designate the school and department or discipline.
• $1 million will establish a named associate professorship; donor may designate the school and department or discipline.
Athletics
Athletics scholarships
• $150,000 will create an endowment that supports athletics scholarships; donor may designate the sport.
• $1 million will create an endowment that supports men’s basketball scholarships.
Coaching/programs
• $100,000 will create an endowment that supports programs or coaches; donor may designate the sport.
• $3 million will establish a named chair supporting an existing coaching position; donor may designate the sport ($5 million for men’s basketball).
• $5 million will fund the creation of a new named chair supporting a new position or area of strategic growth (approved by AD).
Did you know?
Georgetown’s spending rate policy reflects a trailing 5-year moving average of the endowment’s market value two years in arrears and is approved by the Board of Directors. To learn more about the university’s endowment policies, visit investments.georgetown.edu.
How does Georgetown manage its endowment?
Georgetown’s investment office is responsible for investing the university’s pooled endowment (the means by which the vast majority of individual endowed funds are managed), adding value through asset allocation and the selection of investment managers and vehicles.
Much the way individual investors pool their assets in a mutual fund, each of the individual funds that compose the university’s endowment owns units in Georgetown’s pooled endowment.
The university’s investment and spending policies are designed to provide a stable flow of support for annual operations while preserving the future purchasing power of the endowment through asset growth and aligning with the institution’s values. The university’s Board of Directors sets policies and has final fiduciary responsibility for the endowment.
GEORGETOWN A LEADER IN 10-YEAR ENDOWMENT GROWTH
(FY 2014–2024 )
Among U.S. News & World Report Top 30 Universities
Johns Hopkins
UC San Diego
Carnegie Mellon
UC System
Penn
Vanderbilt
Georgetown
UC Los Angeles
Notre Dame
UC Berkeley
Brown
Duke
UNC Chapel Hill
University of Michigan
MIT
Dartmouth
Washington (St. Louis)
New York University
Cal Tech
Yale GROWTH
Source: U.S. News & World Report, NACUBO
Does
the
endowment tax on private colleges and universities apply to Georgetown?
Who controls how the income from my endowment gift is spent?
Not currently. The tax bill passed in December 2017 imposes a 1.4% excise tax on the net investment income of only certain institutions. The tax applies to private universities with at least 500 students if the aggregate fair market value of the university’s assets (other than those assets used directly in carrying out the university’s exempt purposes) is at least $500,000 per student. Georgetown does not meet these criteria and remains committed, as always, to growing the endowment.
Endowment funds may either be categorized as unrestricted or restricted:
• Unrestricted endowments may be used for any purpose and usually go toward operating expenses or a particular project of the university’s choosing. Unrestricted gifts allow Georgetown to direct your support where it’s needed most—valuable flexibility to keep us nimble in embracing future opportunities.
• Restricted endowments are funds established for a more specific purpose, designated by the donor, such as a department or scholarship. The restrictions are documented in a gift agreement and are binding on the university.
Whose name is on the endowment fund?
What happens after I have made my gift?
You can name an endowment for yourself, your family, your friend, or your favorite professor—whatever is meaningful to you.
Once your endowment reaches a minimum designated level and starts generating spendable income, Georgetown will begin sending you annual reports detailing the value and use of your endowment fund.
Financial aid endowment donors learn about their scholarship and fellowship recipients, and professorship donors are updated on the activities of their faculty members.
When you establish an endowment, you begin a new relationship with Georgetown, one that becomes a lasting part of your family’s legacy.
CREATING
A LASTING IMPACT ESTABLISHED ENDOWMENT NEW RELATIONSHIP WITH GEORGETOWN
GIFTS THAT ALSO PROVIDE INCOME
Life income gifts satisfy several goals: They provide philanthropic support while generating both a charitable income tax deduction and an income stream for you or your loved ones.
There are three basic types of life income gifts:
• A charitable gift annuity provides fixed payments for the life of the donor and/or loved one. (gift minimum: $10,000 [one-life] or $25,000 [two-lives], not available in CA/NY). Donors also have a one-time opportunity to use up to $54,000 (2025) from an IRA to create a new CGA to benefit themselves and a spouse.
• A charitable remainder unitrust provides annual payments based on the market performance of the trust assets during the previous year— for life or a set term of years. (gift minimum: $100,000)
• A charitable remainder annuity trust provides fixed annual payments like a gift annuity for a term of years, but the tax treatment of the payout may be preferable for donors giving highly appreciated assets. (minimum: $100,000, $50,000 for CA/NY as CGA substitute)
CHARITABLE LEAD TRUSTS
Donors looking for a tax-smart way to pass appreciated assets to beneficiaries may consider a charitable lead trust (CLT). A CLT is structured as the inverse of a charitable remainder trust, initially making payments to a charity for a term of years (usually 10–20) before then passing the trust assets, which may be highly appreciated, to other beneficiaries or back to the donor with significant tax benefits such as reduced or eliminated capital gains tax, estate tax and/or gift tax. CLTs can be funded during a donor’s lifetime or through their estate.
To learn more about life income gift or charitable lead trusts, contact the Office of Planned Giving at plannedgiving@georgetown.edu or 202-687-1789.
A NOTE ABOUT CHARITABLE DEDUCTIONS
LASTING PA RT OF YOUR FAMILY’S STOR Y
Georgetown, which is recognized as tax-exempt under Section 501(c)(3) of the Internal Revenue Code, is eligible to receive tax-deductible gifts subject to the requirements and limits set forth in the Code and the rules and regulations of the Internal Revenue Service.
This document is not intended as, and should not be considered as, legal, tax, financial, or other professional advice. Georgetown strongly encourages you to seek independent professional advice to find the right giving strategy for your goals and circumstances. This information applies only to donors paying U.S. taxes.
You’ve considered the why, when, what, and how. Now, you get to decide where.
To learn more about what your support could mean for Georgetown’s students, faculty, programs, and mission, please visit calledtobe.georgetown.edu.
To speak with a member of our team, please email giving@georgetown.edu or call 202-687-1789. We will respond within one business day.
We are excited to be your partner in meaningful philanthropy and sincerely appreciate your generosity, wherever it may lead you. Thank you for your commitment to Georgetown’s success, today and always.
GIFT PLANNING TERMS TO KNOW
GLOSSARY
1789 Scholarships: Named in honor of the year Georgetown was founded, these donor-funded scholarships are critical to fulfilling the university’s single highest philanthropic priority: ensuring access and affordability for all admitted undergraduate students. 1789 Scholarships include loan relief for students with the highest demonstrated financial need.
Annual fund: A designated fund for Georgetown’s different units and campuses, composed of restricted and unrestricted current-use funds given by the philanthropic community. Examples of annual funds at Georgetown are the Georgetown Fund, the Law Annual Fund, and the Men’s Basketball Fund.
Annual giving: The act of giving expendable gifts to Georgetown every fiscal year; participation demonstrates the donor community’s collective engagement and commitment.
Appreciated securities: Investments that have increased in value from the time they were purchased, including publicly traded stock and mutual funds.
Bequest: A provision in a will or trust that makes a gift of money, real estate, or personal property to an individual or charity. Bequests can be written as a specific amount or item, a percentage of an estate, or all or a percentage of the residue of the estate.
Capital gains tax: A government tax on the profit made from selling property or investments. “Capital gain” is calculated as the total sale price minus the original cost.
Charitable gift annuity: A contract between a donor and a charity that pays an individual a fixed amount for life in exchange for an upfront gift of cash or appreciated securities. To create a charitable gift annuity at Georgetown, a donor makes a gift of
$10,000 or more and then receives an income tax deduction in the year the gift is made. Georgetown, in turn, pays one or two beneficiaries a fixed amount for life. The amount left when the charitable gift annuity terminates becomes the gift to Georgetown for the purpose identified by the donor. Charitable gift annuities can begin making payments immediately or be deferred to a future date.
Charitable lead trust: A creative way to pass assets to loved ones while reducing or eliminating gift or estate taxes and making a gift to charity. A charitable lead trust uses the assets that were initially contributed to the trust to make annual payments to a charity for a term of years (usually 10 to 20). At the end of the term, the remaining trust assets pass to the beneficiaries without passing through the donor’s estate. An added benefit of a charitable lead trust funded during
a donor’s lifetime is that you will be able to see the impact of your gift at Georgetown. Charitable lead trust can also be created through a will or trust.
Charitable remainder trust: An irrevocable trust that generates an income stream for beneficiaries for life or a term of years with the remainder going to charity when the trust terminates. Charitable remainder unitrusts distribute a fixed percentage based on the value of the trust assets (revalued annually) and additional contributions are permitted. Charitable remainder annuity trusts distribute a fixed amount each year, which is determined when the trust is funded. Trusts can be funded with cash, appreciated securities, real estate, or other assets and may provide significant tax or estate benefits.
Complex asset: A non-publicly traded or other illiquid asset. This includes privately held business interests (e.g., private company stock, partnership interests, private equity, hedge fund interests, pre-IPO shares) and other non-publicly traded assets (e.g., restricted stock, commercial and residential real estate, artwork and collections, oil and gas royalty interests, patents, copyrights). Gifts of complex assets
are subject to a review and approval process at the university.
Current-use gift: Also called an expendable gift. A contribution that may be expended in part or in full at any time by the university—for instance, gifts to annual funds.
Deferred
charitable gift annuity:
An appealing option for some donors who do not seek additional current income but are looking for a strategic way to increase future income. In establishing this type of gift annuity, you would choose a date in the future to receive the first payment; the deferral results in an increase in the annuity rate and an increased income tax deduction.
Donor-advised fund: A charitable giving account established at a public charity. A donor creates a donor-advised fund with cash or appreciated property and receives an immediate charitable income tax deduction for contributions made to the DAF. The funds are then invested for tax-free growth, and the donor can recommend grants to any IRS-qualified public charity. Donors can use their DAF to make gift recommendations immediately, as a “savings account” for future gifts, or name Georgetown as a remainder beneficiary of the fund.
Endowed faculty chair/professorship: Endowing a chair or professorship assures that the donor’s area of interest will be part of an institution in perpetuity. The endowed position, in turn, provides resources and prestige to attract and recognize outstanding faculty and research.
Endowed fund: A gift that is invested in perpetuity, in which the earnings from the invested assets provide permanent financial support, often for a specific purpose directed by the donor.
Endowment: The permanent capital of a university—an aggregation of assets invested to support its educational mission in perpetuity.
Estate tax: A tax levied on the value of the estate of a deceased person before distribution to the heirs. Estate tax may be assessed at the federal and state levels.
Fair market value: The price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.
Fellowship: A gift that provides support for a graduate or postdoctoral student.
The Georgetown Fund: The beneficiary of unrestricted gifts through Georgetown’s annual giving program. Georgetown directs 100% of Georgetown Fund gifts to 1789 Scholarships for undergraduate students.
Gift agreement: Outlines the purpose, form, schedule, and administration of gifts.
Income tax deduction: An amount that you can deduct from your taxable income to lower the amount of taxes owed.
IRA Qualified Charitable Distribution (QCD): Donors who are age 70.5 or older can direct up to $108,000* each year from a qualified IRA to charity. QCDs avoid income tax and count toward the donor’s annual required minimum distribution (if applicable) with the added bonus of providing a gift to charity. *Indexed annually for inflation.
Life income gift: An arrangement that provides income for life or a fixed term of years to beneficiaries while also leaving a gift for charity in the future. Life income gifts may generate a charitable deduction and avoid capital gains (if funded with appreciated securities or real estate).
Living trust: An estate planning option created during your life that allows you to place your assets in trust while continuing to use and control them. Living trusts can be revocable or irrevocable, and avoid probate.
Outright gift: A gift transferred immediately from a donor to an organization. This category can include cash, securities, real estate, tangible personal property, matching gifts, and gifts-in-kind.
Planned gift: A gift to charity made during lifetime or at death as part of a donor’s overall financial and/ or estate planning. Planned gifts often require more planning than a traditional gift by using a more complicated gift arrangement and/ or involving a complex asset often realizing additional tax benefits.
Pledge: A promise to make future contributions to an organization. For example, some donors make multi-year pledges promising to give a specific amount spread across several years.
Principal: The amount donated to fund an endowment; the principal is invested and generates income in perpetuity.
Restricted fund: A gift that is restricted in its use by the donor.
Scholarship: An award of financial support for a student.
Unrestricted fund: A gift that may be used for any purpose and usually goes toward operating expenses or a particular project of the university’s choosing. Unrestricted gifts allow Georgetown to direct support where it’s needed most.
PRINTED ON FSC PAPER | SUPPORTING RESPONSIBLE FORESTRY
