Charitable Contributions (Gifts) Provided to the University

coin going into a piggy bank

The University Board of Regents has designated the University of Minnesota Foundation (UMF) as the central development office of the University. While the University will accept gifts made directly to the University, absent unique circumstances making a direct gift to the University more appropriate, donors shall be requested to make gifts to one of the recognized foundations. The University of Minnesota Foundation (UMF) has the responsibility to see that all gifts are receipted and recorded in accordance with federal tax law. (See University Board of Regents Policy Gift Solicitation and Acceptance.)

UMF development office:

When the IRS determined the University’s exempt status as that of an integral part of the state of Minnesota, it provided the following guidance with respect to contributions given to the University:

Because we have determined that the University of Minnesota is an integral part of the State of Minnesota for federal tax purposes, contributions to or for the use of the University are contributions to or for the use of a state. Accordingly, contributions to or for the use of the University are contributions to or for the use of an entity described in section 170(c)(1) of the Internal Revenue Code of 1986, as amended, and are for exclusively public purposes and are therefore generally deductible under section 170(a)(1) as contributions to a “governmental unit” described in section 170(b)(1)(A)(v). Furthermore, bequests and gifts made to the University are deductible for federal estate and gift tax purposes under section 2055(a)(1) and section 2522(a)(1), respectively.

As an integral part of the state, the University is not a private foundation for the purposes of either the income tax deduction limitations on charitable contributions by taxpayers or the taxable expenditure rules for grants made by private foundations. See code §170(b)(1)(A)(v); Treas. Reg. § 53.4945-5(a)(4)(ii).

Tax Management Office Guideline

TMOG #11 - Acknowledging Services and In-Kind Donations

Additional Information