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 three years of the date of your gift, then it must furnish information concerning the sale to the IRS and to you.

Other Considerations
Pledge payments: Charitable pledges are deductible in the year paid, not the year they are pledged.

 
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For information on the tax implications of deferred gifts, including bequests, please contact our Planned Giving staff.

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