One gift plants the seed for a flourishing endowment fund

When you make an estate gift to Indiana University, you aren’t simply giving a fixed amount—you’re ensuring your gift has the power to multiply exponentially over time. That’s exactly what happened with Bayard and Dixie Floyd’s $271K bequest, which has grown more than 12 times the size of their original gift made in 1955.

In 1955, the Indiana University Foundation received an unanticipated letter from a Florida bank with news of an incoming bequest. Bayard and Dixie Floyd, an alumnus and his wife, left $271K to IU with a directive to start two endowed funds: the Colonel Bayard Franklin Floyd Memorial Fund in Plant Sciences and the Colonel Bayard Franklin Floyd Memorial Fund in Microbiology.

Bayard was a botanist and researcher who used his IU education to help solve problems facing Florida agriculture, work that ultimately earned him a spot in the Florida Citrus Hall of Fame. He wanted his legacy to help educate the next generation of students studying plant science and microbiology, thus extending his impact in the discipline in perpetuity. He and Dixie couldn't have known the magnitude of what their gift would accomplish over the years. Today, more than seven decades later, their generosity continues to make a difference.

Endowments are essential to the ongoing success of the university, as they provide reliable, enduring support year after year. Funds are invested in IU’s larger endowment pool, and each year, a percentage is distributed to support the purposes designated by each donor. IU's current annual spending policy is 4.5 percent of the endowment, and earnings above that amount are reinvested in the principal. This is what allows the fund to grow and increase its impact over time.

To date, the Floyd funds have distributed more than $3.4 million in student support—nearly 12.5 times their original gift—while still maintaining a substantial balance today.

Bayard and Dixie Floyd's gift was certainly a welcome surprise. But the unexpected bequest also evoked a realization: There are alumni and friends who care about IU so deeply that they include the university in their estate plans independently—even without notifying IU. You could credit the Floyds’ gift as the reason we encourage potential donors to notify IU in advance if they have already included IU in their legacy plans.

A legacy gift of any size has the power to make a lasting difference—and it doesn't have to remain a secret in your will. If you are also considering establishing a plan for your legacy with IU, let us help.