Tax Advantages of Giving
One major bonus to making charitable contributions to the Michigan Tech Fund, besides the pride you feel from helping, is the tax benefit. Properly deducting your gifts can lead to considerable savings for you.
The federal government, by providing certain benefits in the tax laws, encourages gifts to educational institutions and other nonprofit organizations such as the Michigan Tech Fund. Donations, bequests, and other gifts to the Tech Fund are deductible for income, gift, and estate tax purposes. The Fund is a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code.
The State of Michigan encourages residents to support Michigan colleges and universities through the Public Contribution Credit. Under this program, Michigan taxpayers receive a 50 percent "refund" on their gifts, subject to limitations on their filing status—individual or joint returns. The credit is available through the income tax form filed by Michigan wage earners.
A single taxpayer can make a $200 gift to the Michigan Tech Fund and receive a maximum $100 credit; married tax payers can make a $400 gift and receive a maximum $200 credit.
(These are just guidelines. We recommend you consult your personal tax advisor for specific tax savings.)
Each type of gift that you can give to the Tech Fund has its own specific benefits. We have outlined some of the possiblities for you below.
Cash Gifts
Even the simplest form of gift, a gift of cash, has considerable tax benefits. Charitable deductions on your tax return can significantly reduce the out-of-pocket cost of your gift.
Example: You may choose to make a cash gift of $1,000. If you are in the 35 percent tax bracket (the top federal tax bracket), you may be able to reduce the federal income tax you pay by $350 ($1,000 times 35 percent). This means your net out-of-pocket cost for contributing $1,000 is only $650.
Your state tax laws may also allow for a tax credit on contributions to qualifying public institutions. For instance, the state of Michigan allows a credit of up to 50% of a gift to a qualified Michigan public institution, with a maximum of $200 for a joint return or $100 for a single return.
More Information on Cash Gifts
Planned Giving
By including the Michigan Tech Fund in your will, you may be able to significantly reduce your estate taxes. Your bequest may be fully deductible from your taxable estate, which may place your estate in a lower tax bracket.
Giving a gift of appreciated securities or real estate can also save you money on taxes. By transferring your stocks, bonds, or mutual funds to the Michigan Tech Fund, you may avoid having to pay capital gains tax on those earnings.
More Information
For more information on the tax benefits of specific types gifts, please visit the "Decide your Goals" web page under our Gift Planning web page.
IRS Charitable Contribution Forms
Note: These forms are located on the IRS website. If you have questions about anything to do with these forms, please contact the IRS.
| Primary Publication: | 526 | Charitable Contributions |
| Related Publications: | 78 | Cumulative List of Organizations (Ordered through IRS Area Distribution Centers) |
| 561 | Determining the Value of Donated Property | |
| Related Forms and Instructions: | Schedule A (Form 1040) | Itemized Deductions and Interest & Dividend Income |
| Form | Instructions | |
| 8283 | NonCash Charitable Contributions | |
| Form | Instructions |