Frequently Asked Questions About Ugift® - Give College Savings

What is Ugift?
How do I invite family and friends to participate in Ugift?
Do I have to wait for a special celebration to use Ugift?
What is the difference between email and paper gift coupons?
What if I don't have the email address for someone I want to invite?
Where can I find a list of family and friends who I've already invited?
What if I want to invite someone new after I've already sent out the original invitation?
How do I know who has sent in a gift contribution?

How do I know that a gift contribution has gone into my account?
How are gift contributions allocated?
When are gift contributions invested?
How does the 529 plan know into which account to deposit a gift?
Are there any tax consequences for Ugift contributions?
As the account owner, do I have to use this process for any contribution from someone other than myself?
Will I receive a confirmation of the gifts submitted to my 529 account on behalf of my beneficiary?
How does the gift-giver know if their gift was received by the 529 plan?
How does the account owner know that a gift was sent?


What is Ugift?
Ugift is an innovative online service that lets account owners invite family and friends to celebrate children's milestones with the gift of college savings. All gifts sent through Ugift are uniquely earmarked and are invested into the beneficiary's 529 account to be used for qualified college and college-related expenses.

How do I invite family and friends to participate in Ugift?
If your 529 plan offers Ugift as a feature, it's easy. All you have to do is log onto your 529 account and click on the Ugift link. You'll be brought to the Ugift screen, where you will be given step-by-step instructions.

Do I have to wait for a special celebration to use Ugift?
No. You can print out a coded gift coupon to give to a family member or friend who would like to contribute to your beneficiary's 529 account -- just click on the "Print Coupon" button. The gift coupon is important, because it contains a bar code that links it to your 529 account and event. Your invitees should mail in the gift coupon with their check.

What is the difference between email and paper gift coupons?
There is no difference in how the coupons look or in how they are processed. The only difference is that when a gift is received with a gift coupon, the 529 plan will check to see if the gift-giver's email address was entered with the invitation. If it is available, a "Thank You" note will be emailed back to the gift giver when the gift is received.

What if I don't have the email address for someone I want to invite?
If you do not have an email address, you can print and distribute uniquely coded gift coupons and optional gift certificates, which are available on the 529 plan's website after you log in and set up an event. Note that gift givers who contribute using these gift coupons will not receive an email from the 529 plan upon receipt of their gift, because the plan does not capture the gift-giver's email address with a paper-based gift coupon.

Where can I find a list of family and friends who I've already invited?
All invitation lists that you've typed into the website over the past 12 months are available on the "View Gift Invitations" page of the website.

What if I want to invite someone new after I've already sent out the original invitation?
Next to each celebration listed on the "View Gift Invitations" page is a link to "Send Additional Invitations." Clicking here will bring you to a new page that allows you to send out invitations to additional guests. Once you have sent these invitations you can track them (and any gifts associated with them) on the "View Gift Invitations" page. Note: The "Send Additional Invitations" will no longer be accessible once the event date has passed.

How do I know who has sent in a gift contribution?
Go to the "View Gift Invitations" page. There, you will see all gift activity over the past 12 months, including the name of the gift giver, the amount of the gift, and the status of the gift.

How do I know that a gift contribution has gone into my account?
Any gift that appears on the "View Gift Invitations" page with a status of "Funded" has been transferred into your 529 account. A status of "Pending" means that it has been received, but has not yet been transferred into your account. Once a gift contribution has been transferred, it will also be displayed in account transaction history.

How are gift contributions allocated?
Gift contributions will be allocated according to the standing allocation on your account at the time the contribution is transferred to the account.

When are gift contributions invested?
Gift contributions are deposited into a non-interest bearing account and then transferred to your 529 account approximately five business days after the celebration date. If the gift contribution is received less than two business days before the celebration, or if the gift cannot be tied to a specific celebration, then the gift will be held for approximately seven business days for clearing purposes before being transferred into your 529 account.

How does the 529 plan know into which account to deposit a gift?
The gift coupons sent to your family and friends are uniquely coded for your 529 account and celebration. 

Are there any tax consequences for Ugift contributions?
There may be potential tax consequences resulting from gift contributions invested in your account; you and the gift giver should consult a tax advisor for more information.

As the account owner, do I have to use this process for any contribution from someone other than myself?
No. For plans that allow third-party contributions, family and friends can send in contributions for your beneficiary's 529 account at any time, without your setting up a specific celebration and inviting people to contribute. Ugift is designed to provide a framework for gift contributions around milestones in your beneficiary's life; it also includes messaging and tracking around that celebration. Anyone can make a contribution to the account outside the Ugift service (provided that the plan allows third-party contributions), but the account number must be included with the contribution so that it is invested in the correct account.

Will I receive a confirmation of the gifts submitted to my 529 account on behalf of my beneficiary?
Yes. You will receive a confirmation statement once the gift contributions have been transferred into your 529 account.

How does the gift-giver know if their gift has been received by the 529 plan?
If you received your original invitation by email, you will receive an email confirming receipt of your gift. Gift givers who are handed or mailed a printed gift coupon will not receive an email.

How does the account owner know that a gift was sent?
The emailed invitation includes a link to the gift coupon and a printable gift certificate that the gift giver can fill out and present at the celebration, acknowledging that a gift has been made. Notice of the gift will also appear in the account owner's account record with the gift-giver's name.