How to Give
There are many ways to give to the College of Education and Human Development that not only help to promote excellence, but also contribute to your own personal and financial goals.
For complete details and benefits, please talk with your financial advisor or contact Lynn Slifer, director of external relations, at email@example.com or 612-625-5511.
Cash gifts are an easy way to give. Cash gifts of any size have an immediate impact on the college program of your choice. You may give cash outright or, depending on the gift size, you may pledge over a period of time.
The benefit to you: If you itemize your tax deductions, your gift is fully deductible up to 50% of your adjusted gross income, with the option to carry any unused balance forward for up to five years.
Four ways to make a cash gift:
- Send a check or money order made payable to the University of Minnesota Foundation, along with a letter stating where you would like your gift designated, to:
McNamara Alumni Center
University of Minnesota Gateway
200 Oak St. S.E., Suite 500
Minneapolis, MN 55455-2010
- Call our credit card hotline at 612-626-8560 or 800-775-2187 and leave your full name and phone number, in addition to the type of credit card, card number, expiration date, amount of your gift, and if/where you would like the gift to be designated.
- Make an online pledge. Fill out and submit the electronic pledge form and your pledge will be processed within one week. You will receive a reminder for payment.
- Make a gift now. Use your credit card to make a gift today.
Gifts of stocks, bonds, treasuries and mutual funds that have increased in value are a "win-win" opportunity for you, and can be made to the college with a simple transfer of ownership.
The benefit to you: Charitable deduction and bypass of capital gains. You can make a gift with appreciated long-term capital gains property such as securities, get a charitable deduction for the full fair market value (up to 30 percent of your adjusted gross income), and pay no capital gains tax on the appreciation.
Property, including homes, cabins, commercial buildings, and farmland can be given to the college as a gift.
The benefits to you:
- Current income tax savings, thus lowering the cost of your gift. You can claim charitable deductions up to 30 percent of your adjusted gross income for gifts of appreciated property in the year you make the gift.
- Charitable deduction and bypass of capital gains. You can make this type of gift and get a charitable deduction for the full fair market value (up to 30 percent of your adjusted gross income), and pay no capital gains on the appreciation.
When retirement plan assets are rolled over and held in an IRA account, they are an excellent source of money for donors to make outright gifts to the University. While the funds withdrawn from an IRA are fully taxable, in many cases, the charitable deduction will equal the amount withdrawn and no tax will be owed.
For more information on this option, please contact Frank Robertson of the University of Minnesota Foundation, at 612-625-0893 or firstname.lastname@example.org.
When you leave a bequest to the college, you can make a generous gift without reducing your current income and reduce your estate taxes. You can make your wishes known by simply noting the college (and a specific department, program or existing endowment) as a beneficiary in your will. You can also create special funds in your name or in memory of loved ones.
The following is one example of language that can be included in your will by your attorney:
I give, devise and bequeath to the University of Minnesota Foundation, Minneapolis, MN 55455 [sum or description of property] which shall be known as the [your name] Fund, the principal and income to be distributed by the Board of Trustees to the College of Education & Human Development for [use where need is greatest] or [specific department or program].
For more information about bequests, please contact Lynn Slifer at 612-625-5511 or email@example.com.
A frequently overlooked way you can make a charitable contribution is by using qualified retirement plan assets. These assets are one of the most taxed at death in larger estates, subject to both income and estate taxes. While current tax law does not allow you to transfer these assets directly to the college during your lifetime, naming the college as the beneficiary on your account could avoid both income and estate taxes on your account at your death.
The benefits to you: Retain control of these assets over your lifetime. If your circumstances change, you can change your beneficiary choice to reflect your new wishes. Depending on the size of your estate, you may also save income and estate taxes.
Some gifts to the college may result in additional financial benefits to the donor. Each option is described briefly. For complete information, please contact Lynn Slifer at firstname.lastname@example.org or call 612-625-5511.
The benefits to you: Each of these life income options is a charitable income tax deduction, like those mentioned above, and income is paid to a beneficiary. At the death of the beneficiaries, the balance of the gift is transferred to the college.
A gift of money or securities can be given to the college, and in return, up to two beneficiaries can receive a fixed amount of income annually for their lifetime. (The annual amount is determined by the age of the income beneficiaries at the time the gift is made.)
Similar to the charitable gift annuity, all of the benefits under a deferred gift annuity are the same except that payments are deferred to a future date (at least one year).
The benefits to you: By delaying payment, the donor may obtain a larger charitable income tax deduction and increase the size of the annual income; hence, the deferred gift annuity is an ideal retirement planning tool.
Other Planned Giving Options
For this option, a donor irrevocably transfers assets, such as cash, securities, real estate, or, occasionally certain businesses, to a trustee of his or her choice. Again, an income is paid to the beneficiary in either a fixed dollar amount (annuity trust) or a fixed percentage (unitrust).
A retained life estate gift allows you to make a gift of personal residence to the college while retaining the right to live in the home for life. The donor is responsible for the maintenance cost, insurance, and real estate taxes. An issue affecting this gift is whether or not there is a mortgage against the home.
The benefits to you: The donor may receive a charitable income tax deduction, based on the value of the property, donor’s age, and life expectancy. For a gift of appreciated property, you may claim a charitable income tax deduction for up to 30% of the adjusted gross income.
For a charitable lead trust, the income is paid first to the charity (college), and after a number of years (based on a term or a lifetime, the remainder is returned to either the donor or another beneficiary.
The benefits to you: For information on the advantages associated with this type of gift, please contact Lynn Slifer at email@example.com or call 612-625-5511.
You can make the college the owner or beneficiary of your life insurance policy. This can be done on an existing policy or by establishing a new policy.
The benefits to you: If you name the University of Minnesota Foundation, Minneapolis, Minnesota, for the benefit of the College of Education and Human Development, the owner of the policy, you can take an income tax deduction for its replacement value. If you continue to pay premiums on the policy, you can deduct the payments as well (providing you make the check out to the University of Minnesota Foundation) and have them make the payment.
Because the tax laws regarding gifts or life insurance policies are complex, for more information, please contact Frank Robertson at 612-625-0893 or firstname.lastname@example.org.