Planned Giving FAQs

What is an endowment?

An endowment is a donation of money or property to a nonprofit organization, which uses the resulting investment income for a specific purpose. An endowment can also refer to the total of a nonprofit institution's investable assets, also known as its principal or corpus, which is meant to be used for operations or programs that are consistent with the wishes of the donor(s). Most endowments are designed to keep the principal amount intact while using the investment income for charitable efforts.
 

How is an endowment different from giving to the Annual Campaign?

Unlike the Annual Campaign, planned gifts to United Way are not annual in nature and are, in most cases, a gift from assets rather than income. In addition, most are deferred commitments that will be realized at a later date. Both are important to furthering United Way’s mission: a gift to the Annual Campaign impacts lives today; a planned gift impact lives forever.

Planned gifts are most commonly contributed to United Way’s endowment. An endowment is a permanent fund carefully invested for growth. It provides a dependable revenue stream year after year.

How does planned giving help United Way?

The endowment works in tandem with the annual campaign to build capacity in meeting current and future needs. It also stabilizes funding in challenging economic times when human service needs are heightened.
As designated donations increase, the pool of money we can freely invest in our partners shrinks. A planned gift enables us to provide extra security to our community’s critical services no matter how donors choose to direct their annual investments.

United Way fights for the health, education, and financial stability of every person in our community. We know that this kind of change takes time; a planned gift ensures that our impact will last just as long as our community’s needs. Here are just a few of the ways your gift will help:

  • LIFT (Link and Inspire for Tomorrow) establishes community schools at locations throughout Racine County. Your investment will drive our ongoing expansion of this program so that we can provide services and build community at the sites where this boost is most needed.

  • Imagination Library provides free books in the mail each month to Racine County children under age five. In order to ensure that wealth is not a prerequisite for any child’s literacy, we rely on regular funding to cover the cost of our community’s books.

  • VITA (Volunteer Income Tax Assistance) provides free tax preparation and filing to Racine County residents. Your investment will help us keep this service available throughout the community so that nobody has to wonder how to do their taxes or how much it will cost.

 

How does planned giving help United Way?

Planned giving offers many benefits, including:

  • sizeable income and estate tax deductions,

  • decreased tax burden for your family,

  • favorable capital gains tax treatment,

  • additional options to provide income for you and your loved ones for life,

  • and a legacy that fits your philanthropic goals.

How can I make a planned gift?

There are a variety of ways to support United Way beyond your lifetime. Some of the more common examples include:

  • designating United Way as a beneficiary of your asset by will, trust or beneficiary designation form.

  • naming United Way as a beneficiary of an IRA or 401(k), which may help you save significantly on your taxes.

  • making a life insurance beneficiary designation or use UWLife insurance, which leverages an annual contribution.

  • facilitating trusts or annuities that pay you or your family income while providing for our community’s future.

  • donating appreciated securities, including stocks or bonds.

Gifts can be immediate or deferred. To learn more about making a planned gift or be referred to a lawyer or financial advisor who can help you make your investment, contact Alberto Huerta at 262-898-2243 or ahuerta@unitedwayracine.org.

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