Restricted & Unrestricted Gifts
When you make an unrestricted gift to Clarkson, you say, "use this gift to further your good work however is best at this time." Oftentimes this is termed "where the need is greatest." Clarkson might, for example, use such a gift for scholarship support, to help fund a building or renovation project, or to leverage a matching grant.
When you place a restriction on your charitable gift, you identify some preference as to how the gift will be used, e.g., scholarship support. In this case, Clarkson would ensure those funds are used for scholarships. Other examples are restrictions to endowment, construction, research, library materials or equipment purchase.
If you place too many restrictions on your gift, however, the government determines it is no longer a charitable gift, and other tax rules apply. So while someone may restrict their charitable gift to scholarship support, if their restrictions somehow limit their gift to their 18-year-old grandchild, it is no longer a charitable gift but may become a taxable gift to another individual. Too many restrictions on your gift may also make it difficult for Clarkson to use.
Which is better? Clarkson relies on both restricted and unrestricted gifts to fulfill its mission. Talk to us about how you may best support the University in keeping with your own philanthropic goals.
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This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisors and Clarkson University before making or planning your gift. (rev. 2/2014)
BNY Mellon Wealth Management
Donor's Bill of Rights
Gift Annuity Rates
Reunion Counting Guidelines
Sample Bequest Language
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