What are the tax benefits
of making a gift to the University of Minnesota?
Gifts to the University of Minnesota are
fully
deductible charitable contributions.
Federal tax law limits the extent to which charitable
deductions may reduce your taxable income. When the value
of your gift exceeds your maximum percentage limitation in
the year given, the excess can be carried forward and deducted
in the five succeeding tax years. The same percentage limitation
applies to the deduction in each of the carryover years.
Non-Cash Charitable Contributions
The federal government allows you to deduct non-cash charitable
contributions. In calculating the deduction, gifts are normally
listed at fair market value. However, you must follow the IRS's
reporting rules to assure your charitable deduction. If you claim
a deduction of $5,000 or more for a gift of property (other than
publicly traded securities), the IRS requires you to obtain a "qualified
appraisal" and attach an "appraisal summary" (IRS Form 8283)
to the income tax return on which you claim the deduction. Less
stringent reporting rules (no appraisal required) apply to publicly
traded securities and to property gifts worth more than $500
but less than $5,000. If the University of Minnesota Foundation
sells your contributed property valued at $5,000 or more within
two years of the date of your gift, then it must furnish information
concerning the sale to the IRS and to you.
Other Considerations
When is your gift considered made?
Charitable gifts
are considered made on the "date of delivery" to the University
of Minnesota Foundation. This date depends on the type of property
contributed and how it is transmitted to the Foundation. If
this date is particularly important (e.g., year-end gifts),
please contact the Foundation office for handling suggestions.
Pledge payments: Charitable pledges are deductible
in the year paid, not the year they are pledged. |
