Follow this year-end countdown to maximize your planned giving and minimize your costs, up to $100,000
If you are age 70 1/2 or older, tell your IRA custodian to transfer part or all of your 2013 required minimum distribution to the University of Minnesota Foundation. You will avoid the income tax that you ordinarily would have owed on the payment. Please call us if you are thinking of making a charitable distribution from an IRA so we can answer your questions and provide the proper acknowledgment for your gift.
Check old U.S. savings bonds to find out whether they are still earning interest. The Treasury Department reports that billions of dollars are held in bonds that have reached final maturity. If you have some of these bonds, redeem them and use the proceeds to make a gift to the University of Minnesota Foundation. The charitable deduction should more than offset the interest you will have to report (if you itemize deductions). You also could choose to receive income from your gift by using the proceeds to fund a charitable gift annuity. We can provide a no-obligation computation showing the benefits.
Look at your stock portfolio to see whether you have appreciated stock or mutual fund shares to use for charitable giving. Not only will you be entitled to a charitable deduction, you will also avoid the capital gains tax (15 or 20 percent) that you would owe if you sold the shares, and possibly the 3.8 percent net investment income tax. Make sure you have owned the shares for more than one year. Stock gifts from a brokerage account can be transferred in just a few days, but mutual fund shares may take several weeks, so start the process early in order to qualify for a 2013 deduction. Call our Planned Giving Office for instructions on transferring the shares.
If your estate plan is several years old — or if you don’t have a will or living trust—see an attorney before year’s end about an up-to-date plan.
Last-minute gifts to the University of Minnesota Foundation can qualify for a 2013 charitable deduction. A check postmarked as late as December 31 will qualify for the deduction, even though the foundation won’t receive the check until 2014. A gift by credit card in 2013 also entitles you to a deduction this year.
When planning your will or updating your existing estate plan, consider adding a bequest to the University of Minnesota Foundation to continue the gifts made during your lifetime. Call us to get our correct legal name or to discuss how you would like your bequest to be used.
To learn more, contact Jennifer White at email@example.com or 612-625-8676.