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
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 email@example.com 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.
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.