Philanthropy 101

Interest in philanthropic giving is at an all-time high, and more and more people are considering planned giving as a way to give back to and support their alma mater. In addition to the Q and A section below, we also recommend the following reference materials:

1. Web site: Look over our expanded Crescendo service, which provides information about estate planning, changes in the tax law, current articles and updated strategies for charitable giving.
2. Book: Invest in Charity: A Donor's Guide to Charitable Giving, Ron Jordan & Katelyn L. Quynn
3. Book: The Greater Good: How Philanthropy Drives the American Economy and Can Save Capitalism, Claire Gaudiani
4. Web site: The Chronicle of Philanthropy
5. Web site: Using the planned giving calculator, you can calculate the effect of different types of planned giving for your personal tax and retirement situation.
6. PDF: Read the latest issue of From the Arbor, by Baker's Jerry Weakley, Vice President of Endowment and Planned Giving.

For more information about how you can support Baker University, please contact Jerry Weakley, Vice President of Endowment and Planned Giving, This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 785.594.8332.

Questions and Answers

Are gifts to Baker tax deductible?
Yes, all gifts to Baker are fully deductible according to IRS guidelines for gifts to 501(c)3 charitable organizations.

What is an unrestricted gift?
Gifts to the University that are not specifically designated by the donor for endowment or capital purposes will be considered unrestricted gifts. Gifts of this kind are applied to the Baker Fund to accommodate the annual budget, applied to capital projects.

Can gifts to Baker be pledged over time?
Yes, any gift to the University can be pledged over a period of up to five years. Here is the pledge form to download or print: Baker Fund Pledge Form (pdf)

What is the President's Club?
The President's Club is the donor recognition society for all donors who make gifts of $1,000 or more in a year or $50,000 or more over a lifetime.

What is an endowment?
An endowment is the invested fund that supports the University through the interest that it generates each year. The principal of the endowment is never used; instead, only a portion of the interest is used so that the money placed in the endowment will be around to support the University in perpetuity. About 400 individual endowed funds make up the entire Baker University endowment, each benefiting a different need.

How are funds in the endowment used?
Parameters for the use of the money generated by endowed funds are designated at the time of establishing the fund. In general, uses cover student scholarships, academic program support, faculty professorships and chairs and annual support for the overall operation of the University.

What is the difference between current-use funds and endowed funds?
Both terms refer to the directive given by the donor about how the donation is to be used. Current use means that the entire amount of the gift is used for the purpose that the donor has designated. Endowed funds are invested with the University's endowment, and only a portion of the interest is used each year to support the area of need that the donor has designated. With this method, the principal will never be touched and remain in the University's endowment forever, drawing interest.

What is an endowed chair?
An endowed chair is a specific type of endowed fund that provides significant annual monetary underwriting for a specific academic, student or administrative position. The position, for example a professorship, may or may not be supplemented by additional revenue streams from Baker. A donor must make a total of $1,000,000 or more in donations to such a fund within 10 years of his or her first donation to the fund. The fund may also be established through a deferred gift that results in a $1,000,000 or more contribution at a later time.

What is a named scholarship and how is it started?
A named scholarship is set up in the name of an individual to honor him or her. Named scholarships can be started with as little as $500, and can be added to at any time. To be fully endowed, the scholarship needs to have at least $10,000. Named scholarships usually are designated for a specific type of student or area of study.

Who should I contact for more information about establishing an endowed fund or to learn more about planned giving?
Please contact Jerry Weakley, Vice President of Endowment and Planned Giving, for more information on how to establish a named scholarship to benefit students in your particular area of interest, This e-mail address is being protected from spambots. You need JavaScript enabled to view it or 785.594.8332.