Make the most of your year-end giving

How to support your favorite UMD cause and save on taxes

Your generosity can provide essential support to students, faculty, research, and programs at UMD. 

If you are considering making a gift to UMD by the end of the year, you may wish to do so in a way that also provides you with tax savings. Here’s how you can 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 UMD. For securities held longer than one year, you may deduct the full fair-market value, subject to applicable limitations. If you do not itemize deductions, you 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 your federal income, lowering your overall tax liability. This option provides tax savings even if you do not itemize deductions. 

If you are 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. The time it takes the IRA administrator to transfer the funds varies. Please contact your administrator as soon as possible to ensure your gift is completed by December 31.

Make a gift that pays fixed income for life

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

You receive an income tax deduction for part of the gift, and a portion of each annuity payment is tax-free. You 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 UMD's planned giving staff or call 218-726-7989.

Give from a donor-advised fund

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

Most DAFs also allow donors to recommend the charities that will receive the remaining fund assets after they pass away. If you would like UMD to receive all or a portion of the remainder of your fund, please contact your DAF administrator.

SUPPORT WHAT IS MEANINGFUL TO YOU

Our development staff can help you direct your gift to a UMD college or program of your choosing. If you are unsure which gift option may be best for you, or how you would like your gift to be used, please contact our team of gift planning professionals or call 218-726-7989.