Giving Cash

Cash gifts are an easy way to give.  Cash gifts of any size make an immediate impact on the University campus, academic department, or program of your choice.

The Benefit To You

• You can claim charitable decuctions up to 50 percent of your adjusted gross income for gifts of cash in the year you make the gift.  Excess deductions may be carried over for up to five years.
• You also may qualify for a match that doubles, and sometimes even triples the impact of your gift.

Giving Securities

Gifts of stocks, bonds, treasuries, and mutual funds that have increased in value are a win-win opportunity for you under current tax laws.  They provide an immediate benefit to the University, and are a current income tax savings for you.

The Benefit To You

Charitable deduction and bypass of capital gains.                                           

You can make a gift with appreciated long-term capital gains property such as securities, get a charitbale deduction for the full fair market value (up to 30 percent of your adjusted gross income), yet pay no capital gains tax on the appreciation.  You can even carry excess deductions over an additional five years, as long as the deduction does not exceed the 30 percent ceiling for any one-year.

To find out more about making a gift of appreciated securities, please contact The University of Montana Western Foundation office at 406.683.7305 or 800.487.1933

Giving Real Estate

Real estate includeds homes, cabins, commercial buildings, ranch land, and other property.  Gifts of this nature can be very helpful to the University while providing you with substantial benefits, too.  If the value of your property is more than you wish to give (or deduct) in any given year, you may make a gift of only a part of your interest in it.  As an example, if you own ranch land but do not wish to contribute all of it, you may donate a partial interest.  The Foundation reviews each potential gift of real estate before accepting the gift.

The Benefit To You

• Current income tax savings, thus lowering the cost of your gift.  You can claim charitable deductions up to 30 percent of your adjusted gross income for gifts of appreciated assets in the year you make the gift.  Excess deductions may be carried over for up to five years.
• Charitable deduction and bypass of capital gains.  You can make a gift with appreciated long-term capital gains property such as real estate, get a charitable deduction for the full fiar market value (up to 30 percent of your adjusted gross income), yet pay no capital gains tax on the appreciation.  You can even carry excess deductions over an additional five years, as long as the deduction does not exceed the 30 percent ceiling for any one year.

Personal Property

Works of art, antiques, rare books, coin collections, almost anything of value, can be used to make a gift to the University.  If you donate these gifts during your lifetime, you may be entitled to a charitable income tax deduction of either your cost basis or the property's current fair market value.  Gifts of personal property are subject to certain conditions that do not apply to gifts of cash, securities, or real estate.  For example, for a gift to be deductive at full fair market value, it must be directly related to the mission of the University.  Likewise, an artist who wishes to donate one of his/her own works is only able to deduct the cost of materials used to create the work.  Gifts valued at more than $5,000 must have a qualified appraisal in order for the donor to obtain a tax deduction.  Therefore, before making such a gift, you should first contact the Foundation to discuss details of use, valuation and deductibility.

Planned Gifts

Bequests

Making a bequest allows individuals to keep their assets during their lifetimes.  they can specify the academic area or programs that they wish their gifts to benefit.  They also can create special funds in the names, or in memory of loved ones.  Charitbale bequests are normally deductable in full for estate tax purposes.  A provision may be made in your will stating that The University of Montana Western Foundation, for the benefit of The University of Montana Western, is to receive a specific amount, a percentage, or the remainder of your estate after payment of taxes and expenses.

Life Income Gift

You may wish to make a gift to the University through the UMW Foundation, but feel you cannot afford to give up the income presently being produced by the asset.  Our Planned Giving Program offers a number of alternatives for making such a gift while generating lifelong income for you and your spouse.

A Charitable Gift Annuity

This is one of the easiest and most popular ways to make a charitable gift and receive an annual income.  You transfer cash or securities to the Foundation, which pays a fixed annual amount to one or two named individuals for life.  You can fund a gift annuity with a minimum gift.  Payments made to you can be received quarterly, semi-annually, or annually.  A portion of the income is tax-free and the donor also receives a charitable deduction for part of the gift. 

A Charitable Remainder Trust

This trust makes an annual payment to one or more individuals for life or for a term of years.  A charitable remainder trust can be funded through the transfer of assets such as cash, stocks, bonds, or other property.  The annual payment can be a dollar amount or a fixed percentage of the annual value of the trust property.  The donor is allowed an immediate income tax deduction for part of the value of the initial trust property.  If that property is appreciated, the trustee can sell it without paying capital gains tax.

Life Insurance

The University of Montana Western Foundation may be named as owner and beneficiary of an existing policy that may have outlived its original purpose, or you may wish to make the Foundation the owner and beneficiary of a new policy.  On a new policy, you would claim donations equivalent to the premium payments as income tax deuctions (for those who itemize) each year.  For an existing policy, you would claim the cost basis or cash surrender value, whichever is less.

Gift of Residence With A Life Interest

Ownership in a primary residence, a vacation home or a ranch may be donated during your lifetime.  There are several advantages:  you may retain the use of the property for your life and that of a second person, you are allowed an immediate charitable deduction from your income taxes and you remove the asset from your taxable estate.

The Benefits To You

• Make an immediate or future impact on the University.
• Help the academic department or program of your choice.
• Make a large gift with a small cash investment.
• Save on income tax.
• Reduce estate taxes.
• Avoid capital gains tax.
• Generate lifetime income.

*Funding your planned gift with securities or other property that has appreciated in value has the additional advantage of avoiding all capital gains taxes.

To choose the right kind of gift option, you need to determine how you would like your gift to benefit the University of Montana - Western and fit your own financial goals and situation.  For further discussion, please contact the University of Montana Western Foundation Office at 406.683.7305 or 800.487.1933.