As COVID-19 continues to affect our lives, the University of Minnesota community is coming together to make a difference in individual lives and in our world. Many donors have provided emergency support to students and caregivers, funded lifesaving equipment and research, and supported the entire University system. Thank you for driving the innovative research, teaching, and outreach happening in all areas of the University!
We understand that in these uncertain times, giving to charitable organizations like the University may not be possible for everyone. At the same time, we’ve been receiving questions about ways donors can continue to support the University. Here’s some information that may be helpful to you.
How does the Consolidated Appropriations Act of 2021 affect charitable giving?
The Consolidated Appropriations Act of 2021 extends and expands provisions of the Coronavirus Aid, Relief, and Economic Security (CARES) Act that passed in 2020, which may affect your charitable giving:
- If you don’t itemize deductions on your 2021 tax return, you can still take a charitable income tax deduction for cash gifts to public charities like the University of Minnesota. The 2021 deduction is $300 for single filers and $600 for married couples filing jointly.
- If you do itemize, you can still deduct cash gifts up to 100% of your adjusted gross income (AGI) in 2021.
Can I make a qualified charitable distribution from my IRA?
The CARES Act suspended required minimum distributions (RMDs) from retirement accounts in 2020. However, anyone of RMD age must resume those distributions in 2021 and beyond. If you are an IRA owner and are 70½ or older, consider making a qualified charitable distribution directly to a public charity and avoid paying federal income tax that would otherwise be due on the distribution.
If you want to continue supporting the University or other charitable organizations that are important to you, a qualified charitable distribution from an IRA is one of the most tax-advantaged ways to give.
How can I support the University with my donor-advised fund?
Gifts made to a donor-advised fund have already been set aside for charity, making them a great way to support the organizations that are important to you during times of economic uncertainty.
You can recommend grants from your fund to the University of Minnesota Foundation by providing the following information to the sponsoring organization:
Legal name: University of Minnesota Foundation
UMF federal tax ID: 41-6042488
Mailing address: P.O. Box 860266, Minneapolis, MN 55486
Name of the U of M campus, college, program, or fund where the grant should be directed
Each sponsoring organization has forms they use to recommend these grants. To find these forms, look on the sponsoring organization’s website or contact them directly. Your sponsoring organization will distribute the grant directly to UMF.
How can I make a gift and receive fixed annual income?
With the current market uncertainty, many donors are looking for options that provide a fixed income. A charitable gift annuity is an attractive fixed income option that also provides support for the University.
With this type of gift, a donor makes a gift of cash or publicly traded securities. In exchange, the University of Minnesota Foundation (UMF) agrees to pay the donor, or others the donor has designated, a fixed amount annually for life. Payments are backed by all the assets of the foundation. At the termination of the gift annuity, the remaining assets support the campus, college, or program the donor has designated.
To receive a personalized gift annuity illustration, please contact the UMF Planned Giving team.
What are some ways I can support the University if I need financial flexibility right now?
Many donors find that including a gift in their will or revocable trust is a meaningful and flexible way to support the University. With this type of gift, you maintain control of your assets during your lifetime, and you can change your plans at any time. You can give a specific dollar amount, specific property, or a percentage of what remains after you’ve provided for your loved ones.
Another option is to name the University of Minnesota as a beneficiary of your tax-deferred retirement account. This simple option allows these assets to pass tax-free, so the full value of your gift will support the areas of the University that are important to you. If transferred to your heirs, these assets are subject to income tax and possibly estate tax. Like a gift in your will, a gift of retirement assets can be changed at any time.
Can I choose what my gift will support?
Yes. You can direct your gift to any campus, college, or program. Whether you’d like to give to the U of M cause that’s most meaningful to you, or to current COVID-19 relief efforts, your support ensures a brighter future for the University and the communities it serves. All gifts made before June 30, 2021, are included in Driven: The University of Minnesota Campaign.
For questions, or to learn more about how your gift can help change lives, please contact the foundation’s Planned Giving team at (612) 624-3333 or (800) 775-2187, or contact the development officer you work with at the University.
The University of Minnesota Foundation does not provide legal or tax advice. Please consult with your professional advisor before making a gift.