More Information for Donors and Advisors

The following information is provided for those who would like more details about the gift planning opportunities introduced in this Web site.

Income Tax Benefits

In order to receive maximum income tax benefits from your charitable gifts, you must be in a position to itemize deductions on your income tax return. What if you don't have enough deductions to qualify for itemization in a given year? By combining more than one year's charitable gifts and other deductible expenditures into a single tax year, you may be able to boost your total deductions over the minimum amount required in order to itemize. As a result, it may be possible to reap tax benefits from otherwise non-deductible charitable gifts and other expenses (such as property taxes on a home).

Carrying Over Excess Deductions

If you give more than the deductible limits for gifts in any one year, you may "carry over" any remaining deductions and make use of them over the next five tax years.

Giving Appreciated Property

Property that has increased in value and been held for the long-term holding period defined by law (currently one year and a day) is generally deductible for its current market value up to 30% of adjusted gross income (AGI). Exception: Tangible personal property (for example, art, antiques, collections, or jewelry) is deductible at full present value only if it is used in the furtherance of the recipient's tax-exempt purpose. If not (for example, if it is to be resold immediately), your deduction is generally limited to the original price paid for the property or its current value, whichever is lower.

Appraisals. To claim a deduction for certain gifts of non-cash property, it is necessary to obtain a qualified appraisal of the property. A "qualified appraisal" is required when non-cash property gifts have a claimed value of more than $5,000 ($10,000 for gifts of closely held stock). Exception: Publicly traded securities, such as stocks and mutual funds. See IRS Form 8283 for details.

Gift substantiation rules. For all gifts of $250 or more, donors must have a written acknowledgment and retain it with their tax records. Such letters must state the value of any benefits received by a donor in connection with their donation.

Guidelines for Drafting Charitable Trusts

In order to assure qualification for tax benefits, charitable trusts should be drafted by an attorney (as should wills and other legal documents). The University of Alabama provides trust documents on those occasions when it is willing and able to serve as trustee. Documents should always be reviewed by your legal advisor.

To aid drafters of charitable remainder trust agreements, the Internal Revenue Service has issued specimen provisions to be included in such agreements. Many of these can be found in the August 2003 Internal Revenue Bulletin 2003-31 which contained eight new charitable remainder trust annuity specimen documents (Rev. Proc. 2003-53 through Rev. Proc. 2003-60). In 2005, the Service released eight new charitable remainder unitrust specimen documents (Rev. Proc. 2005-52 through Rev. Proc. 2005-59).

Calculating Tax Benefits

As a service to those interested in making gifts to The University of Alabama, we are pleased to provide estimated tax deductions associated with the gifts mentioned on this Web site. These calculations are intended as estimates only. They will vary on a monthly basis depending on prevailing interest rates and other factors, and they should always be independently verified by a donor or their advisors prior to completing a particular gift. Please use the Contact Planned Giving form or e-mail mailbox@advancement.ua.edu to request an illustration.

For any questions not answered on our Web site, please use the Contact Planned Giving form or e-mail mailbox@advancement.ua.edu so that we may better assist you.

PLANNED GIVING Gift Planning What to Give Income to You Providing for Heirs Charitable Annuities Will or Living Trust Retirement Plans Reach Many Goals Gifts of Homes Compare the Benefits Information for Advisors The Denny Society Contact Planned Giving Office of University Advancement 284 Rose Administration Box 870122 Tuscaloosa, AL 35487 phone: (205) 348-4767 toll-free: (888) 875-4438 fax: (205) 348-8871 mailbox@advancement.ua.edu		More Information for Donors and Advisors The following information is provided for those who would like more details about the gift planning opportunities introduced in this Web site. Income Tax Benefits In order to receive maximum income tax benefits from your charitable gifts, you must be in a position to itemize deductions on your income tax return. What if you don't have enough deductions to qualify for itemization in a given year? By combining more than one year's charitable gifts and other deductible expenditures into a single tax year, you may be able to boost your total deductions over the minimum amount required in order to itemize. As a result, it may be possible to reap tax benefits from otherwise non-deductible charitable gifts and other expenses (such as property taxes on a home). Carrying Over Excess Deductions If you give more than the deductible limits for gifts in any one year, you may "carry over" any remaining deductions and make use of them over the next five tax years. Giving Appreciated Property Property that has increased in value and been held for the long-term holding period defined by law (currently one year and a day) is generally deductible for its current market value up to 30% of adjusted gross income (AGI). Exception: Tangible personal property (for example, art, antiques, collections, or jewelry) is deductible at full present value only if it is used in the furtherance of the recipient's tax-exempt purpose. If not (for example, if it is to be resold immediately), your deduction is generally limited to the original price paid for the property or its current value, whichever is lower. Appraisals. To claim a deduction for certain gifts of non-cash property, it is necessary to obtain a qualified appraisal of the property. A "qualified appraisal" is required when non-cash property gifts have a claimed value of more than $5,000 ($10,000 for gifts of closely held stock). Exception: Publicly traded securities, such as stocks and mutual funds. See IRS Form 8283 for details. Gift substantiation rules. For all gifts of $250 or more, donors must have a written acknowledgment and retain it with their tax records. Such letters must state the value of any benefits received by a donor in connection with their donation. Guidelines for Drafting Charitable Trusts In order to assure qualification for tax benefits, charitable trusts should be drafted by an attorney (as should wills and other legal documents). The University of Alabama provides trust documents on those occasions when it is willing and able to serve as trustee. Documents should always be reviewed by your legal advisor. To aid drafters of charitable remainder trust agreements, the Internal Revenue Service has issued specimen provisions to be included in such agreements. Many of these can be found in the August 2003 Internal Revenue Bulletin 2003-31 which contained eight new charitable remainder trust annuity specimen documents (Rev. Proc. 2003-53 through Rev. Proc. 2003-60). In 2005, the Service released eight new charitable remainder unitrust specimen documents (Rev. Proc. 2005-52 through Rev. Proc. 2005-59). Calculating Tax Benefits As a service to those interested in making gifts to The University of Alabama, we are pleased to provide estimated tax deductions associated with the gifts mentioned on this Web site. These calculations are intended as estimates only. They will vary on a monthly basis depending on prevailing interest rates and other factors, and they should always be independently verified by a donor or their advisors prior to completing a particular gift. Please use the Contact Planned Giving form or e-mail mailbox@advancement.ua.edu to request an illustration. For any questions not answered on our Web site, please use the Contact Planned Giving form or e-mail mailbox@advancement.ua.edu so that we may better assist you.

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