Giving to UMF
There Are Myriad Ways to Support UMF
- Gifts of Cash
- Stocks and Securities
- Real Estate
- Personal Property & In-Kind Gifts
- Matching Gifts
- Planned Gifts (Bequests, Life Insurance, Charitable Gift Annuities)
Please contact Pat Carpenter, director of gift planning, at email@example.com or at 207-778-7091 for more information about ways to give.
Gifts of cash represent the simplest form of a gift and can be completed by sending a check to UMF at 242 Main Street, Farmington, ME 04938. With a gift of cash, a donor may deduct the value of his gift, up to 50 percent of his adjustable gross income, as a charitable contribution in the year the gift is made. Cash gifts are considered transferred on the date they are hand-delivered to UMF or postmarked.
Gifts of Publicly Traded Stocks and Securities
Gifts of publicly traded stocks and securities are a way to receive double benefits; those that have been held for more than 12 months can be deducted from your taxable income at their fair market value, without paying capital gains tax on the appreciated portion of the gift. Gifts of stocks or securities are valued at their fair market value on the date the certificates are transferred to UMF. For publicly traded securities, the fair market value is computed as the average of the high and low market prices on the date of transfer.
UMF uses E*Trade Securities, LLC. Please call the Development Office at the Ferro Alumni Center at 207-778-7091 for the DTC and account number as well as to inform them of the following:
- The number of shares being transferred
- The name of the corporate stock
- The name of the issuing company
- The purpose of your gift
Gifts of Real Estate
Gifts of real estate that has been owned for more than 12 months may be used to make a major gift to UMF, in accordance with University of Maine System and IRS requirements. These properties must be appraised by an independent, qualified appraiser to determine the value, and UMF may choose to conduct an environmental study of the property before the gift is accepted.
Gifts of Personal Property and In-Kind Gifts
Gifts of personal property and in-kind gifts make attractive contributions to UMF if they support the mission of the university and can be sold for the benefit of the campus, and are in accordance with University of Maine System and IRS requirements.
Matching gifts are a benefit to employees at some corporations. The company will match an employee’s gift to a non-profit at different levels: one-to-one; one-to-two; etc. Check with your human resources office to ask what their policies are and to request a matching gift form.
Bequests written as part of a last will and testament are sometimes the biggest gift from a donor to UMF. When a donor’s estate matures, the wishes of the donor are followed, thus it is imperative to notify the staff at the Development Office in the Ferro Alumni Center before working with your lawyer. Please call 207-778-7091 for appropriate wording.
One of the most common and popular ways to make a planned gift is with a Charitable Gift Annuity. A gift annuity is a simple contract between a donor and the University of Maine System. In exchange for an irrevocable gift, UMS will agree to pay one or two annuitants a fixed dollar amount each year for life. The yearly amount will be based on life expectancy: the older the donor at the time of the gift, the greater the amount will be.
Charitable gift annuities are very popular for several reasons:
- They pay a relatively high annuity rate;
- They require only a minimum contribution of $10,000;
- They can be funded with cash or securities;
- The donor can receive an immediate charitable income tax deduction for a portion of the gift;
- The donor can reduce his/her capital gains tax liability if they use an appreciated asset to fund the annuity;
- Part of the annuity payments may be tax free, significantly increasing the effective return;
- Estate taxes are avoided on the asset contributed;
- The annuity payments are fixed and guaranteed by the assets of the University of Maine System.
- Donors are able to select the annuity payment intervals (usually quarterly) and to name their beneficiaries. In addition, donors may designate the future use of their gift.
Donors who are 60 years of age or older often find that they can receive fixed gift annuity payments larger than the returns they are currently receiving from their savings accounts or investments and at the same time make a gift that will ultimately have a substantial impact on university programs.
Donors over 50 years of age, particularly those who have contributed the maximum limits to their retirement plans, may want to consider a deferred gift annuity. Under this arrangement, income tax deductions are taken now, during high income years and annuity payments are postponed until later when they may be in a lower tax bracket. Because payments are deferred, donors receive higher annuity payments once they begin. This arrangement effectively supplements the donor’s retirement plan while providing a substantial gift to the donor’s University of choice.