Your year-end support is especially critical to helping the UofM continue to educate the dreamers, thinkers and doers who will strengthen and lead this community. As 2012 comes to an end, and a new year with new opportunities unfolds, there are several options to make a year-end investment in the University in the most tax-wise and effective manner.

Your gift at this time will also provide support to the Empowering the Dream Campaign. With a goal of $250 million, the Campaign will result in an increased endowment to attract and retain world-class faculty and talented students, add new buildings and renovate others, and provide program support to strategic areas of study.

A gift of cash

Checks can be mailed to the University of Memphis Foundation, Department 238, P.O. Box 1000, Memphis, TN 38148-0001 or personally delivered to The Alumni Center at 635 Normal Street, Monday - Friday, between 8:00 and 4:30. Please note that the University of Memphis offices are closed from December 22 through December 30; the office will be open on December 31, 2012 from 8:00 until 2:00.

IRS regulations indicate that a check mailed to us is considered delivered on the day it is mailed. A gift sent through the mail must be postmarked by December 31, 2012 to be deductible in that year.

For your convenience, year-end gifts can be made by credit card online at any time at www.memphis.edu/giving. Automatic draft options are also available. Questions should be directed to gifts@memphis.edu or call 901-678-3953.

A gift of appreciated stock

If you have appreciated stock, you may be able to make a very tax-wise gift to the U of M Foundation. When you give appreciated stock, you may be able to take a deduction for its full value, not just its original cost, and may avoid the capital gains taxes that would be incurred if you had sold it. The Dow is at a level matching values back in 2007, before the "recent unpleasantness" of the recession. Those of you who have stocks you have owned for many years may be back up to previous levels, and if you were an investor who bought at the 2009 low point, you may have doubled your investment.

For information on donating securities, please call Joanna Curtis at 901-230-6148.

Gifts from retirement assets

Charitable IRA rollover legislation expired in 2011. Although legislation involving the donation of IRAs and qualified retirement plans is under consideration, no laws have currently been enacted. Check with your professional advisor or call Dan Murrell at 901-678-2732 for the latest information.

Looking Ahead to 2013

Knowledgeable donors are aware that there is some uncertainty about 2013 and what changes might take place. Whatever else occurs, many agree that at least two things will take place unless Congress acts: 1) the Bush tax cuts of 2001 will expire and income, estate and gift taxes will all change as well, and 2) current gift and estate tax credits will drop from over $5 million to $1 million. Change is coming.

Should you wait to make larger charitable gifts? Professional advisors like those at the Sharpe Group point out that both parties have proposed legislation that limits the future value of all deductions, including charitable giving. One proposal that is mentioned often is to limit the charitable gift deduction to the 28% tax bracket. For an example of how that would affect someone making a $10,000 gift, a person currently in the 35% tax bracket making that gift in 2012 saves $3500, but that same gift in 2013 would only save $2800, resulting a substantial increase in the after-tax cost of the gift.

Beneficiary Review

As the year winds down, and as you consider your financial and tax situation, this is also a good time to do a quick review of your total charitable giving and to review important documents. Among those documents should be those with beneficiary designations, e.g. life insurance policies, retirement plans, etc. Make sure those designations are up to date and in line with your other legal documents, and that they have included those people – and organizations – that you intend to remember. Using a beneficiary designation is a very easy way to include the University of Memphis Foundation in your estate planning.

This information should not be construed as investment, tax or legal advice. Before making your charitable gift, please consult with your financial, legal and other advisor.