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Frequently Asked Questions
Q. May I designate my gift to the School of Social Work for a particular area or project? If so, how can I accomplish this?
Q. Does the University of Missouri offer a charitable gift annuity?
Q. Can I obtain an income tax deduction if I make a gift to the University?
- A. Gifts may be designated for a particular area or project within the School of Social Work. Gifts of cash should include the gift designation in writing on the “memo” line of a check or in accompanying correspondence. When making a gift of stock, the donor should alert the Advancement Office as to how he or she wishes the University to be used.
Donors may direct the University to endow gifts of $25,000 or more (see section on endowments) The endowment document will specify how the college is to use the gift.
Planned giving instruments such as wills and trusts may include language that directs the use of the gift. Your attorney may use the following language in drafting a bequest to the school: “I give, devise, and bequeath to The Curators of the University of Missouri, a public corporation, the sum of ___ (or the residue of my estate, or __% of my estate) to be used for _______ by the School of Social Work on the University of Missouri campus.”
Donors giving insurance policies should send the Development Office information in writing about their gift's designation.
Gifts may also be designated both for programs within the School of Social Work and for other departments or programs on campus. The School also welcomes unrestricted gifts.
- A. Yes. A charitable gift annuity is a simple, contractual agreement between the University and a donor in which assets are transferred to the University in exchange for life payments. Payments can be for one or two persons. Rates are based on age. After the annuitant's lifetime the remainder is available to be used by the University as specified by the donor.
- A. The following general information applies in most cases; please consult your financial advisor to determine the tax consequences of your particular gift.
Cash gifts: 100% deductible. Donor may deduct up to 50% of his/ her adjusted gross income (AGI) for any single year. There is a five-year carry forward period for gifts in excess of that 50%.
Gifts of securities: Held Long Term (One year and one day): Tax deduction is full fair market value of securities, deductible up to 30% of AGI, with a five-year carryover period where deduction exceeds that 30%. Held Short Term (one year or less): Tax deduction is cost basis (what donor paid to acquire it).
Real estate gifts: Held Long Term (One year and One day): Deductible at full fair market value. Deductible up to 30% of adjusted gross income with a five-year carry forward period. Held Short Term (One year or less): Deductible at the cost basis of the property (what donor paid to acquire it.) Donor may deduct up to 50% of his/her adjusted gross income with a five-year carry-over period for any excess of this amount.
Gifts of tangible personal property: Held long term (One year and one day): Gifts that are put to use in some aspect related to University activities are deductible at full fair market value. Deductible up to 30% of adjusted gross income with a five-year carry-forward period for any excess. Gifts that are unrelated to University purpose are deductible only at the cost basis of the item. Held short term (One year or less): Deductible only for the cost basis, regardless of the use.
Gifts of life insurance: Deduction is replacement cost of policy or the cash surrender value (determined on a case-by-case basis) for a paid-up policy. If there are premiums left to be paid, the deduction is generally slightly more than the cash surrender value. If the donor continues to make premium payments, such are gifts to the University and are income tax deductible. (Gifts of life insurance policies must name the University as the beneficiary and irrevocable owner of the policy prior to acceptance.)
Bequests: No income tax implications. Gift to University is deductible from taxable estate of the donor/decedent.
Life income agreements: Donor may deduct the present value of the remainder interest. The Advancement Office can provide sample tax deduction calculations for illustration purposes. Gifts to MU are deductible depending on type of property used to fund trust (see above) up to 30% or 50% of AGI with a five-year carry-over for any excess.
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We are happy to answer any questions you might have about giving to the School of Social Work. Just e-mail your question to us at ssw@missouri.edu.
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