Make the most of year-end giving
How to support favorite U of M causes and save on taxes

Donor generosity can provide essential support to students, faculty, research, and programs at the University of Minnesota. 

If a donor is considering making a gift to the University or to M Health Fairview by the end of the year, they may wish to do so in a way that also provides them with tax savings. Here are four ways to do that:

Give appreciated assets

Giving securities, such as stocks, bonds, or mutual funds that have increased in value, is a smart way to support the U of M. For securities held longer than one year, donors may deduct the full fair-market value, subject to applicable limitations. If they do not itemize deductions, they may still benefit by avoiding capital gains tax that would be due upon the sale of the asset. 

Give from an IRA

IRA owners who are age 70 ½ or older can give up to $100,000 directly to charity from their IRA, tax-free. The amount of the charitable distribution can be excluded from their federal income, lowering their overall tax liability. This option provides tax savings even if they do not itemize deductions. 

IRA gifts must be completed by December 31. If a donor is using an IRA checkbook to make a gift, the date of the gift is established when the IRA administrator transfers the funds after the charity deposits the check, not when the check is postmarked or delivered.

Make a gift that pays fixed income for life

Donors can give cash or appreciated securities to the University to fund a charitable gift annuity. In return, the U of M Foundation pays them (or up to two people they choose), a fixed annual amount for life. 

Donors receive an income tax deduction for part of the gift, and a portion of each annuity payment is tax-free. They also can save on capital gains tax if the gift annuity is funded with appreciated securities. To request a personalized gift annuity illustration with the new higher rates, contact the University’s planned giving staff or call 612-624-3333.

Give from a donor-advised fund

Giving to the University from a donor-advised fund (DAF) is simple. If a donor recommends a grant to the University of Minnesota Foundation, their DAF administrator will distribute the grant directly. If they would like to designate a gift for a specific campus, college, or program, they need to provide that information to their DAF administrator at the time they request the grant.

Most DAFs also allow donors to recommend the charities that will receive the remaining fund assets after they pass away. If a donor would like the University of Minnesota Foundation to receive all or a portion of the remainder of the fund, they should contact their DAF administrator.

SUPPORT WHAT IS MEANINGFUL

Our development staff can help donors direct their gifts to a U of M college, campus, or program of their choosing. If they are unsure which gift option may be best, or how they would like their gift to be used, they can contact our team of gift planning professionals or call 612-624-3333.

 

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