Occasionally a potential internal donor asks whether they can make a donation to the University of Minnesota through the UM Foundation, and direct its use. The concern is mainly an issue of tax consequences to the donor. One cannot deduct as a charitable contribution "a contribution to a specific individual", nor "a contribution from which one receives or expects to receive a benefit." Further, if your contribution entitles you to merchandise, goods, or services, you can deduct only the amount that exceeds the fair market value of the benefit received.
If there are questions related to this, it would be best to consult with a tax advisor prior to making a gift to review possible tax consequences.
See also: IRS Publication 526 Charitable Contributions.
In addition, an internal donor is not allowed to direct use of his/her contributions, and therefore could not be an authorized signer on funds where they make contributions.
For more information, please contact:
Rose Pederson
CLA Fiscal Administration
208 JohH - 101 Pleasant St SE
Minneapolis, MN 55455
Phone: 612-626-7611
Fax: 612-624-6839
