As the year comes to a close and we enter into the season for giving, remember that making year-end charitable gifts can be beneficial in many ways. They provide much-needed support for the Eller College, are personally heartwarming, and may produce significant tax savings for you.

By timing your charitable gifts before December 31, you will see a tax break for the year when you itemize deductions on your tax return. There are several strategies for resourceful year-end giving:

Write a check

The Dean's Excellence Fund represents the unrestricted gift revenue that supports a variety of programs and projects that are typically not funded through the existing State budget. Excellence Fund dollars are also made available for general scholarships and grants to assist and reward students. Each year unrestricted gifts to the College provide value-added experiences for students and faculty in the form of:

• Scholarships
• Internships and experiential learning opportunities
• Student participation at conferences and academic forums
• Undergraduate student research projects
• Networking opportunities
• Visiting scholars
• Executives-in-residence
• Undergraduate advising improvements

The Excellence Fund can also leverage additional support from corporations and foundations. When alumni show their support by making annual unrestricted gifts, our grant applications with many corporations and foundations are strengthened.

By supporting the Eller College Dean's Excellence Fund, you are saying you care about your alma mater and the future of the Eller College

Create an endowment

Create an endowment by contributing appreciated securities that you have held more than one year. You can claim deductions for their full fair market values and avoid any tax on appreciation.

Gifts designed to provide an ongoing source of support in perpetuity. Endowed funds are invested and made expendable according to UA Foundation policies and guidelines. Typically four to five percent of the fund balance is made available annually to support the designated program or project. The corpus is preserved and protected. Generally, endowments are established for scholarships, professorships, fellowships, and program support. In most cases, the donor works with the College and the UA Foundation to establish an appropriate agreement.

Prepay a pledge

You can prepay a pledge–either the entire amount or an upcoming installment.

Invest in a life income plan

A life income plan provides you with income security for the rest of your life and ultimately benefits the Eller College of Business and Public Administration. If you use long-term appreciated securities to fund the plan, you will be entitled to an income tax deduction based on the charitable portion of the securitiesí full value, in addition to avoiding capital gains taxes.

Calculate how a charitable remainder annuity trust can benefit you.

Calculate how a charitable remainder unitrust can benefit you.

Calculate how a charitable gift annuity can benefit you.

Take a capital loss

By selling securities that are worth less now than when you purchased them, you can take a capital loss on your tax return and then contribute the proceeds. If you donate your securities directly to the Eller College, you will not be entitled to take the capital loss.

Give real estate, artwork, and other tangible personal property

Give property that will result in the greatest capital gain if/when sold by The University of Arizona Foundation on behalf of the Eller College. The result is a higher tax deduction.

Donate an insurance policy

A gift of a life insurance policy you no longer need makes a perfect year-end gift. To qualify as a gift, the University of Arizona Foundation on behalf of the Eller College must become the owner and beneficiary or the irrevocable beneficiary. If the policy is paid up, your tax deduction is usually the cost basis or the replacement value of the policy, whichever is less.

Be aware of gift dates

The gift date, or the date used for tax purposes, is the day you transfer control of the asset. Keep in mind that there are different rules governing the gift date depending on the asset or your method of giving.

Checks–The postmark date is the date of the gift.

Credit cards–The day the charge is authorized is considered the gift date.

Pledges–Pledges are deductible in the year they are fulfilled and not the year the pledges are made.

Securities–If the securities are electronically transferred to The University of Arizona Foundation, the gift date is the day the securities enter our account. For hand-delivered securities, the day they are received by the University of Arizona Foundation or our broker is the date of the gift. For securities that are mailed, the mailing date is the gift date. It is important to send, by registered or certified mail, the unsigned certificates in a separate envelope from the signed stock power and letter of intent. Stock market fluctuations after the date of delivery will not affect your charitable deduction.

Real estate–The day the UA Foundation, on behalf of the Eller College, receives the signed deed is the date of the gift. If your state law requires recording of the deed to fulfill the title, though, then the date of recording is the gift date.

Artwork and other tangible personal property–The gift date is the day that the UA Foundation, on behalf of the Eller College, receives the property with a signed document transferring ownership.

Always seek counsel

Discuss your charitable gift plans with financial, legal, and the UA Foundation advisors. Be prepared to confidentially address financial and personal goals with regard to your charitable giving interests–what you want to give, the timing of your gift, and how a gift will be made. By asking many questions, you can better determine what suits your needs while benefiting the Eller College.

Please call the Office of Advancement at 520-626-8666, or e-mail John-Paul Roczniak at roczniak@eller.arizona.edu, for more information.

The information on this site is not intended as legal, tax, or investment advice.
For such advice, please consult an attorney, tax professional, or investment professional.