University of Michigan - Flint

Year-end planning is a ritual for many of our friends who like to coordinate their tax and gift planning.  But, it may take on additional significance as we adjust to the changing tax laws and marketplace.  Individuals who want to make a difference for future generations should consider how they can increase the impact of their giving.  Here are some important ideas that may be helpful with your year-end gift planning.

December 31, 2007 is the last day the Pension Protection Act of 2006 will be in effect.  You can make a gift using funds from your individual retirement account (IRA) without undesirable tax effects.  Individuals aged 70 ½ or older may transfer up to $100,000 this year directly from an IRA to a qualified charitable organization.  Because a qualified charitable contribution generates neither taxable income nor an itemized tax deduction, even non-itemizers can benefit.  The charitable distribution may be applied toward your required minimum distribution.  Even if you plan other charitable gifts that will fully utilize your allowable federal income tax charitable deduction (50% of your adjusted gross income for cash gifts to public charitable organizations), you can take advantage of this legislation.

Contact your IRA custodian to transfer your desired gift amount to the charitable organization of your choice.

When you write a check to a charity, the gift is complete when the check is mailed.  Gifts by check postmarked by December 31, 2007, are eligible for a tax deduction for the year 2007, even if the charity does not cash it until 2008.  When you charge your gift to a bank credit card, it is deductible by the donor in the year the charge is made.  For 2007 charitable deductions and credits, the IRS has ruled that credit card gifts are deductible only in the year the bank processes the transaction.  To be processed for tax year 2007, credit card gifts by mail must reach the university by December 24; or you may call (888) 518-7888 (toll free) or (734) 647-6179, 9 am – 4 pm, EST, between December 26 and December 31.  Credit card gifts may also be made online at any time.

Year-end is a special time to give.  Through creative gift planning, you can do more for yourself and for the causes that are important to you.  Please let us know if we can be of assistance to you and your advisors as you review your year-end planning options for 2007.  Contact the Office of Institutional Advancement at (810) 767-2150.  

With best wishes for a joyous new year,
The Staff of Institutional Advancement