Cash Gifts
Immediate Benefits for Michigan Tech
The simplest and most frequently used method of providing outright support for Michigan Tech is a cash gift – whether currency, personal check, credit card authorization, money order, or bank draft – made payable to the Michigan Tech Fund.
You may benefit from such gifts, too. Charitable deductions on your federal income taxes may allow you to 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 39.6 percent tax bracket (the top federal bracket), you may be able to reduce the federal income tax you pay by $396 ($1,000 times 39.6 percent). This means your net out-of-pocket cost for contributing $1,000 is only $604. If you itemize deductions on your federal tax return, an outright gift of cash can be claimed as a charitable contribution up to an amount equal to 50 percent of your adjusted gross income. Any deduction not usable in the first year can be carried over for up to five additional years or until it is completely used, whichever is first.
The state of Michigan allows special tax treatment for contributions by state residents to the University through the Michigan Tech Fund. The allowable tax credit is 50 percent of the gift, but not to exceed $200 for a return filed jointly and $100 for a single return. This is available whether or not you itemize deductions on your federal return.
Benefits of Cash Gifts
- Immediate impact on the Michigan Tech program of your choice
- Immediate charitable deduction can reduce the net cost of your gift
- Simple to make