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An endowment is a gift made to establish a perpetual fund at the University of Missouri. Only distributions generated from the investment earnings of the fund are used for the designated purpose of the fund each year.
Currently, the University of Missouri offers three specific levels of endowments: $1,100,000 is required for a named faculty chair; $550,000 for a named professorship; and $25,000 for all other endowments.
The following general information applies in most cases; please consult your financial advisor to determine the tax consequences of your particular gift.
- Cash gifts: 100 percent deductible. Donor may deduct up to 50 percent of his/her adjusted gross income, or AGI, for any single year. There is a five-year, carry forward period for gifts in excess of that 50 percent.
- Gifts of securities held long term (one year and one day): Tax deduction is full fair market value of securities, deductible up to 30 percent of AGI, with a five-year, carryover period where deduction exceeds that 30 percent.
- Gifts of securities held short term (one year or less): Tax deduction is cost basis (what donor paid to acquire it).
- Real estate gifts held long term (one year and one day): Deductible at full fair market value. Deductible up to 30 percent of adjusted gross income with a five-year, carry forward period.
- Real estate gifts held short term (one year or less): Deductible at the cost basis of the property (what donor paid to acquire it.) Donor may deduct up to 50 percent of his/her adjusted gross income with a five-year, carryover period for any excess of this amount.
- Gifts of tangible personal property held long term (one year and one day): Gifts that are put to use in some aspect related to University activities are deductible at full fair market value. Deductible up to 30 percent of adjusted gross income with a five-year, carry forward period for any excess. Gifts that are unrelated to University purpose are deductible only at the cost basis of the item.
- Gifts of tangible personal property held short term (one year or less): Deductible only for the cost basis, regardless of the use.
- Gifts of life insurance: Deduction is replacement cost of policy or the cash surrender value (determined on a case-by-case basis) for a paid-up policy. If there are premiums left to be paid, the deduction is generally slightly more than the cash surrender value. If the donor continues to make premium payments, such are gifts to the University and are income tax deductible. (Gifts of life insurance policies must name the University as the beneficiary and irrevocable owner of the policy prior to acceptance.)
- Bequests: No income tax implications. Gift to University is deductible from taxable estate of the donor/decedent.
- Life income agreements: Donor may deduct the present value of the remainder interest. The Advancement Office can provide sample tax deduction calculations for illustration purposes. Gifts to MU are deductible depending on type of property used to fund trust (see above) up to 30 percent or 50 percent of AGI with a five-year, carryover period for any excess.
Yes. A charitable gift annuity is a simple, contractual agreement between the University and a donor in which assets are transferred to the University in exchange for life payments. Payments can be for one or two persons. Rates are based on age. After the annuitant’s lifetime the remainder is available to be used by the University as specified by the donor.
Don’t see your question here?
We are happy to answer any questions you might have about giving to the College of Human Environmental Sciences. Just e-mail your question to us at HESDevelopment@missouri.edu.