Building the Purdue Endowment is a top priority for several reasons. Because endowments are held in perpetuity and invested for the long term, these gifts provide one of the most secure sources of future revenue.
Like all public universities, Purdue builds its budget from five income streams: tuition and fees, sponsored funding, internal reallocations, state funding, and private giving. Since the 1980s, state support has accounted for a steadily decreasing percentage of the overall budget. This trend makes private gifts even more critical for Purdue’s ongoing excellence.
Endowment gifts from alumni and friends enable Purdue to offer a scholarship to an exceptional student, attract an outstanding professor, buy equipment, enhance a library—all the foundational investments that are vital to achieving excellence.
Planning an endowment gift can be a creative, challenging, and rewarding process. Endowment agreements, signed by the donor and Purdue, delegate to the university the responsibility of administering the funds according to the donor’s wishes in perpetuity.
A minimum of $25,000 will establish an unrestricted endowment at Purdue through any outright giving method using cash, securities, or personal and real property. Scholarships start at $50,000 for endowments with no restrictions or limited restrictions (merit and/or need) and $100,000 for endowments with restrictions. Other minimums for naming opportunities such as professorships, deanships, schools, and programs apply, depending on the endowment’s purpose. Our development professionals can help you choose the most beneficial gift asset and the best method for transferring it to the university in order to achieve your giving objectives.
Specific tax and financial benefits from your gift depend on what type of asset you give and how you transfer it to the university. You may be able to receive federal and state income-tax benefits, avoid or reduce capital-gains tax liability, and qualify for estate- or gift-tax deductions. Several types of gifts can provide tax benefits while offering a lifetime income to you and your heirs.
We recommend you consult with your attorney or accountant for advice on the legal and tax implications of any gift you might make.
Designating your gift to the President’s Fund is your most versatile option because the president directs this money to the areas of greatest need. This fund has provided scholarships and student services; supported building projects, laboratory renovations, and innovative new programs; and matched major grants.
You can also have a meaningful impact on programs throughout the university by tailoring your gifts to a particular area of interest, such as a college or school, academic unit, campus organization, or project.
Named professorships, fellowships, and scholarships are a few of the opportunities that Purdue provides for donors to associate their name or someone else’s with Purdue. Many of the named opportunities have minimum permanent or annual funding requirements to ensure that income will be adequate to achieve the donor’s intent, both now and in the future. Purdue University scholarships are open to all individuals and are administered in compliance with the university’s nondiscrimination policy.
The goal of our investment policy is to ensure that private gifts to Purdue are managed well, invested thoughtfully, and used for the purposes specified by donors. For investment purposes, Purdue pools the individual endowment gifts into a single fund. This allows us to achieve greater diversity in our investments, lower our investment costs, and attain the maximum return on donor gifts.
Our investment objectives include the preservation of capital, the protection of capital from inflation, and the enhancement of capital through market appreciation. With these objectives in mind, we invest the majority of endowment funds in equities and the remainder in bonds and alternative investments. This has resulted in steady growth of the Purdue Endowment.
