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 does limit 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.