Professional Gift Planners: Click here for our Planned Giving Design Center.
Pledges may be paid over a period of five years from the date of the pledge. Use one of the methods below to fulfill your pledge.
Gifts of Cash
Gifts of Appreciated Securities & Real Estate
Gifts of Closely Held Stock
Gifts of Real Estate
Gifts of Farms and Homes
Gifts of Personal Property & life insurance
Gifts of Life Insurance
By following the links you will learn about a variety of tax-favored ways to provide for the University of Northern Iowa. Although, we talk at length about taxes and tax savings, as they are an important consideration when making a charitable gift, the greatest advantage to your gift is the benefit it brings to our students. You will gain by experiencing the joy and satisfaction in knowing that your gift has helped assure the future vitality of the University of Northern Iowa, a place where teaching and learning are paramount.
Every dollar you give outright to the University of Northern Iowa Foundation is tax deductible. The maximum deduction allowable for gifts of cash is limited to 50% of your adjusted gross income. (Any amount given in excess of this limitation can be carried over and deducted for up to five subsequent years).
Another fact should be noted: many states allow state tax charitable deductions that can make your gifts even more economical.
Cash gifts are the most common form of giving and are as easy to make as writing a check to the UNI Foundation.
If you have marketable securities that have grown substantially in value, the tax laws make it possible for you to make a significant gift at a remarkably low after-tax cost.
A lifetime gift of appreciated securities generally qualifies not only for the income tax deduction associated with all lifetime charitable gifts, but also it avoids the long-term capital gains tax on your paper profit. Usually, a sale of appreciated securities results in a tax on your full gain – meaning you keep only part of the profit. But if appreciated securities are given to the UNI Foundation, there is no tax on your gain, even though your “profit” is counted as part of your charitable gift.
There are three preferred ways to transfer publicly traded securities to the UNI Foundation:
- Mail the certificates.
- Hand deliver the certificates.
- Transfer to a UNI Foundation account.
One of our accounting staff or gift officers can provide complete details on the benefits and transfer of gifts of securities.
The tax benefits available for gifts of appreciated real estate are virtually identical to those for gifts of appreciated securities. First, you avoid capital gains tax on your profit. Second, you receive an income tax charitable deduction for the full market value of the property.
Owners of closely held corporations have a problem whenever they try to get money out of their business for personal use. The IRS considers this a stock dividend and the owner is taxed accordingly. There is a way, though, by which the owner can receive a substantial benefit from the company, not have to pay any tax, and assist the University. Here’s how it works.
Example: You own 90% of your corporation and decide to donate a few shares – total value of $10,000 – to the UNI Foundation. The gift of stock still leaves you in full control of your business, and realistically, costs you nothing personally. Yet you are entitled to a $10,000 charitable deduction, which saves you $3,100 in income taxes, assuming a 31% tax bracket.
The UNI Foundation has no reason to keep the shares, and therefore returns them to your corporation for redemption. Your corporation gives the UNI Foundation $10,000 and retires the stock.
The best part of this arrangement is that the IRS has ruled that you will not be considered to have received a dividend – even though $10,000 has been removed from your corporation – as long as the UNI Foundation is not required to turn back the shares to your corporation. Please contact the UNI Foundation to explore this option further.
If you own your home or farm – or even a vacation home – you may be able to make a gift of the property, obtain an immediate income tax deduction, and still continue to use the property for as long as you wish. How does this work? Simply give the property to the University of Northern Iowa Foundation, but retain the right to use it for your life. You can continue to live in your home, or work your farm, just as before. You continue to pay taxes on the property and assume upkeep responsibility. Only after you no longer need the property will the UNI Foundation assume the usual ownership rights.
By setting up this gift now, rather than in your will you will receive an immediate income tax deduction for the present value of the UNI Foundation’s future right to receive your property. Here’s how it works:
Assume you and your spouse are near retirement, and pay a good deal of income tax each year. You own the home in which you live, having paid off the mortgage ten years ago. You plan to live in the home for the rest of your lives, but would also like to leave a generous gift for the benefit of UNI students. Therefore, you have decided to donate the home, currently worth $150,000, to the UNI Foundation, while retaining the use of the home for the rest of your lifetimes. Based on your age and other factors, you receive an immediate income tax deduction of nearly $25,000. This arrangement also reduces the taxes on your estate.
Many other types of personal property – such as antiques, collectibles, artwork, even patents and copyrights – are valuable assets that make excellent charitable gifts to the UNI Foundation. In many cases, the same favorable tax rules apply to these gifts as for gifts of securities and real estate.
Another method of giving to the University of Northern Iowa Foundation is through a gift of a life insurance policy. The UNI Foundation has received gifts of both existing policies that are no longer needed for their original purpose and new policies written for the purpose of make a charitable gift.