Frequently Asked Questions

Please see the most recent version of our Guidelines for Gift Acceptance and Fundraising Progress Counting.

When mailing your contribution, please remember to specify the name of the fund you want your contribution to support. If sending your donation via regular mail, please mail your contribution to:

Rutgers University Foundation
P.O. Box 193
New Brunswick, NJ 08903-0193

If sending your donation via overnight courier service (such as UPS or Fedex), please mail your contribution to:

Lockbox Services (Box #11193)
(Rutgers University Foundation)
MAC Y1372-045
401 Market Street
Philadelphia, PA 19106

Please call (848) 932-7650, and someone will assist you.

If there is a transaction from the Rutgers University Foundation on your credit card statement that you did not authorize, please submit an inquiry through the Credit Card Gift or Subscription option on the Contact Us form, and someone will assist you.

This sometimes happens when our credit card terminal encounters errors and makes multiple attempts to process your gift. However, this does not imply that multiple gifts will be processed. Please submit an inquiry through the Credit Card Gift or Subscription option on the Contact Us form, and someone will assist you.

If you would like to change the timing or amounts of your existing subscriptions, please submit an inquiry through the Credit Card Gift or Subscription option on the Contact Us form, and someone will assist you.

Please do not email this sensitive information. For security reasons, please call (848) 932-7650, and someone will assist you.

If you made your contribution through the Rutgers University Foundation website, you should have received an email receipt shortly after you submitted your gift online. However, if your online contribution is related to registration for an event or you made your contribution through other means (over the phone, through the mail, via stock transfer, etc.), you can expect to be mailed a donor tax receipt within 10-15 business days. If you have still not received a receipt within this time frame, please submit an inquiry through the Donor Tax Receipts option on the Contact Us form with the appropriate receipt type selected, and someone will assist you.

Please submit an inquiry through the Donor Tax Receipts option on the Contact Us form with the appropriate receipt type selected, and someone will assist you.

Donor tax receipts are issued to the legal donor of the contribution. If you made your gift through your company or family foundation, the receipt will be issued to your company or family foundation as the legal donor. However, if you made your contribution through a donor advised fund, your donor advised fund should have issued you a receipt for tax purposes. The Rutgers University Foundation does not issue donor tax receipts for contributions received through donor advised funds.

Your donor tax receipt may note that certain entities received Rutgers recognition credit for your charitable contribution. This in no way implies legal credit for tax purposes, but instead means they are being recognized in our system for helping facilitate the contribution. For example, if a contribution was made through an alumnus’ family foundation, their family foundation would be credited as the legal donor for tax purposes, and the alumnus would be given recognition credit. If you still have questions regarding recognition credit, please feel free to submit an inquiry through the Other option on the Contact Us form, and someone will assist you.

Please register the donation under the “Rutgers University Foundation” account.

You will be notified when the Rutgers University Foundation has confirmed the matching gift claim with your employer. If you have any questions related to a matching gift or whether it has been successfully received by the Rutgers University Foundation, please submit an inquiry through the Matching Gift option on the Contact Us form, and someone will assist you.

Yes! Rutgers has many plans for gifts that pay you income. You can also provide income for a child, a grandchild, a parent, or a friend. That income can increase cash flow now and/or during retirement, pay for a college education, provide income for aging parents, or perhaps assist a loved one with special needs. You can also provide income to Rutgers by using a charitable lead trust.

An easy and low cost way to make a gift to Rutgers is to include Rutgers in your will or revocable trust. Gifts by Will are a major source of endowment support at Rutgers. Each individual legacy contributes to our financial strength and ability to meet the needs of our students and their families. If you have not already done so, please consider putting Rutgers in your will or revocable trust. See our bequest language page for samples of how to do this. You can also designate Rutgers the beneficiary of a life insurance policy or retirement-plan benefits.

Most often the answer to this is “yes!” Many donors direct that their gifts be used to create scholarships, support specific departments, honor a favorite faculty member, or remember a loved one. Please be sure to discuss this when you make your gift.

If your gift is a bequest commitment or through life insurance, a life-income plan, or a lead trust, you will become a permanent member of the Colonel Henry Rutgers Society. Of course, we will also honor any requests for gifts to be anonymous.

Gifts are made for many different reasons. Often gifts are made

• To express gratitude for the education you received
• To honor a loved one or a professor who was important to your education
• To ensure Rutgers will remain a vibrant and strong place for today’s students and for future students
• To help Rutgers provide the very best in education to students, regardless of their finances
• To celebrate a special occasion—such as your Reunion

“I give, devise, and bequeath to the Rutgers University Foundation the sum of __________ dollars / __________ percent of my estate, to be used ___________ [e.g., for its general purposes, to establish a named scholarship fund, for a specific school or program, or for a particular purpose decided upon in advance in consultation with a qualified foundation representative].”

If Rutgers University is included in your financial/estate planning, please notify us by submitting an inquiry through the Estate and Gift Planning option on the Contact Us form, and someone will assist you.

If you are a financial/legal advisor, please submit an inquiry through the Estate and Gift Planning option on the Contact Us form, and someone will assist you.

For a Charitable Gift Annuity, you will receive your 1099R by January 31^st. The Charitable Remainder Trust tax returns and K-1’s are sent by February 28^th, but this is subject to the IRS releasing the 5227 and 1041 tax forms in a timely manner.

Endowed funds at the university work much like a mutual fund: each new fund is assigned shares or units in the overall university endowment pool at the previous quarter’s market value. When a fund is established for a specific purpose (such as scholarships, program assistance, etc.) the available income, distributed according to the spending policy, is directed to that purpose. The annual income distribution is allocated to each endowment account in the overall investment pool based on the number of shares assigned to the account as of July 1 of the given year.

Any earnings above the spending rate are retained in the investment account to steadily grow the endowment and thus the earning potential. When there are additions to an endowed account during the fiscal year, shares are assigned based upon the market value per share of the entire investment pool at the end of the previous quarter.

The market value of an endowed account is the value of each endowment’s share of the pool’s investment portfolio at the end of a specific time period.

Market values are calculated by the University on a monthly basis.

New funds will begin to receive income after 12 months of existing in the pool. This policy allows for new funds to season and start to gain investment returns before being spent. To ensure immediate spendable income, additional gifts can be directed to the operating side of an endowment.

The purpose of the endowment is to provide funding, in perpetuity, for programs at the university. The amount of this funding each year, referred to as the spending allowance, is determined by the boards’ spending policy. The boards have selected a spending rate of 4.00 percent of the average of the trailing 12 quarter-end endowment market values as being appropriate for sustaining the purchasing power of the endowment while providing the funding for which the endowment was established. Adjustments will be made when appropriate.

The goal of creating an endowment is to ensure funding in perpetuity. A fixed percentage for spending helps to ensure adequate protection of the endowment’s future purchasing power.

An underwater fund is one in which the current market value is below the original gift value that opened the fund.

Yes. In June 2009, the New Jersey Legislature adopted the Uniform Prudent Management of Institutional Funds Act, which regulates numerous facets of fund management, including fund expenditures. Even during less-than-favorable economic periods, the act allows for prudent spending to support the university. Spending distributions for funds more than 15 percent underwater will be suspended until those funds recover below this 15 percent threshold.

Currently there is a one-time 2.5 percent, 5 percent, or 10 percent fee charged on outright gifts, depending on the size of the gift: 2.5 percent for gifts of $10 million or more, 5 percent for gifts of $10,000 or more, and 10 percent for gifts of $9,999 or less.

The annual endowment administrative fee is a 0.95 percent charge based on the 12-quarter average market value of the endowment pool at the last closed fiscal year.

Rutgers’ Board of Governors established these fees to support fundraising activities, the growth of the endowment, and the university. Rutgers is not alone in charging gift and endowment fees. It is common among higher education institutions to assess fees that assist in the running a fundraising endeavor, in addition to other university goals.

As of June 30, 2018, the university’s endowment was valued at $1.33 billion.

There is a misconception that a public university, or state university, is funded fully or in large measure by the state. This is not true. In fact, in 2017, only 22 percent of Rutgers’ budget was covered by funding from the State of New Jersey; that’s down from 1989, when 69.9 percent was covered by the state. As a result, Rutgers and institutions like Rutgers must rely on fundraising to assist with meeting the priorities of the institution and the balance of their respective budgets.

The Board of Governors and the Board of Trustees have oversight of the endowment. These boards delegate their responsibility to the university’s Joint Committee on Investments (JCOI) and appoint committee members. The JCOI sets overall policy and oversees the Endowment Office, which administers, implements strategy, and makes recommendations.

About 60 percent of the university’s endowment funds are permanently restricted, and 43 percent of these restricted funds are dedicated to scholarships and fellowships.

Not even close – less than one percent of Rutgers University’s annual operating budget is paid for by its endowment.

The endowment’s primary purpose is to achieve a total return averaging at least the spending rate of 4 percent, plus inflation and costs. Returns experienced in excess of this provide for the long-term growth of the endowment. The endowment’s time horizon is considered to be infinite, with a focus on long-term performance. Rutgers’ goal is to achieve strong returns at an acceptable level of risk while adhering to the highest fiduciary standards and upholding a commitment to the core values of the university.

Time Horizon: The endowment has a long-term investment horizon and serves as a perpetual asset to the university.
Return: The long-term objective is to achieve a total return averaging at least the spending policy plus inflation, net of fees and expenses. Returns in excess of this amount will provide for the long-term growth of the endowment.
Risk: The overall level of risk in the endowment will be primarily mitigated by attention to asset allocation. The focus is on overall portfolio risk, not risk related to specific asset classes.
Liquidity: The endowment has a long-term investment horizon with relatively low liquidity needs. For this reason, the endowment can tolerate short- and intermediate-term volatility provided that long-term returns meet or exceed its investment objective.

For the rules which government investment of the Endowment, please click here.

Even if you are establishing an endowed fund, the fund agreement is your insurance that the university will make every effort to comply with the intentions of your gift. The agreement also provides a historical record of the purpose of the fund for future administrators to adhere to.

The charitable deduction limit for cash contributions by individuals in 2020 has been suspended, allowing a donor to deduct cash charitable contributions up to 100 percent of adjusted gross income (AGI). The prior limitation was 60 percent of AGI. Gifts to donor-advised funds are excluded. The five-year carryover applies to contributions in excess of AGI, but in subsequent years the then-applicable deduction limit applies.

The 100 percent of AGI limit is not automatic; you must elect to make the deduction on your 2020 tax return, so consult with your advisers before filing your return.

Required minimum distributions (for people 72 years of age and older) from IRAs and other qualified retirement accounts are suspended for 2020. The qualified charitable distribution (IRA charitable rollover) is still available for those 70.5 years of age and older up to $100,000.

Additionally, due to the suspension of the charitable deduction limit for cash contributions in 2020, a donor 59.5 years of age and older may take a distribution in any amount from an IRA, claim the income, and then make a charitable contribution that eliminates the income tax liability.

Exceptions have been provided for early, penalty-free withdrawals from qualified retirement plans for COVID-19-related expenses (up to $100,000). There are specific requirements, so donors should seek advice from financial, legal, or tax advisers before taking distributions. The waiver applies to those younger than 59.5 years of age.

The charitable deduction limit for cash contributions by corporations in 2020 has been increased to 25 percent of taxable income, up from 10 percent in prior years.

Donors who do not itemize may exclude up to $300 in cash charitable contributions from their adjusted gross income in 2020, therefore avoiding income tax on those contributions. Donor-advised funds are excluded.

The information on this page is intended to provide general guidance on charitable gift planning. It is not intended as legal or tax advice and should not be relied upon as such. For advice or assistance with your particular situation, consult an attorney or other professional adviser.