Endowments Create a Legacy for Michigan Tech
John and Jane Husky have been giving to Michigan Tech for years. We consider them partners in our mission to prepare students to create the future. In fact, we've grown downright dependant on their annual gifts. Consequently, when they are gone, we will feel the absence of their giving.
John and Jane realize this and are taking steps to ensure that their giving never runs dry. Through their will, they are creating the John and Jane Husky Endowment Fund. A portion of their assets will be set aside for a special fund that will continue the giving that they are doing now.
Why Endowments Work
Endowments work well for people like John and Jane. Here are three reasons:
- Endowments are Perpetual. Like an artesian well, endowment funds keep giving and giving and giving. Buildings may crumble and people will come and go, but endowments last. An endowment at the Michigan Tech Fund is a wonderful way to create a legacy. The endowment fund will not only provide a perennial source of income to Michigan Tech, but it will also serve as a continuing reminder that John and Jane cared about Michigan Tech and its mission, and that they were people of generosity and goodwill.
- Endowments are Protected. Michigan Tech sets aside its endowment funds and keeps them separate from operating and capital fund accounts. John and Jane have the assurance that their endowment fund will be secure. Their written agreement will be on file, and Michigan Tech will carefully follow its terms.
- Endowments are Personal. While it is possible, and sometimes desirable, to create an unnamed, unrestricted endowment fund, many people want their fund to bear a person's name. They also may want to tailor the endowment to benefit a specific area of interest at Michigan Tech.
How to Fund your Endowment
"Only rich people can create endowments." Has this thought kept you from considering the creation of your own Michigan Tech endowment fund? Actually, with a little planning, nearly anyone can establish an endowment. Michigan Tech requires a minimum of $25,000 to do so, which may seem like a lot of money, but consider these options:
- Do it now. Some folks prefer to establish their endowments now so they can enjoy watching it grow and benefit Michigan Tech. If you wish to use cash, the Michigan Tech Fund permits a donor to fund and endowment over a period of years. Or you may want to use publicly traded stock that is highly appreciated in value but low in dividend return. Because the Michigan Tech Fund can sell your stock without incurring a capital gains tax, it may be the perfect funding method for you.
- Do it later. While it may not be feasible to start an endowment now, your estate will likely have enough resources after your lifetime. Consider the possibility of using the remainder of a trust or an annuity, an existing life insurance policy, or a bequest from your will for this purpose.
- Do it now and later. You may want to start your endowment now, modestly, and then add to it later through your estate plan.
More Information
For more information about setting up an endowment, see our Giving Information site, or contact Eric Halonen, acting director of development and director of planned giving at (906) 487-3325.