Is Charitable Giving in Your Holiday Line-Up?

The Florida State University Foundation is grateful for the many gifts received from our generous donors each and every year. The federal government encourages your generosity by allowing you to deduct your gifts to charities on your income tax return if you itemize. We are pleased to provide you with a summary of some important IRS requirements. These may be helpful to you when preparing your federal income tax return for the year 2025 (due by April 15, 2026).

Cash gifts

For cash gifts, regardless of the amount, record-keeping requirements are satisfied only if the donor maintains as a record of the contribution a bank record or a written communication from the Florida State University Foundation showing the Foundation’s name and the date and amount of the contribution. A bank record includes canceled checks, bank or credit union statements and credit card statements. Bank or credit union statements should show the name of the charity and the date and amount paid. Credit card statements should show the name of the charity and the transaction posting date. The record-keeping requirements will not be satisfied by maintaining other written records. Donations of money include those made in cash, by check, electronic funds transfer, credit card and payroll deduction.

Contributions made by payroll deduction

For a charitable contribution made by payroll deduction, a donor is treated as meeting the substantiation requirements if no later than the date for receipt of substantiation the donor obtains: (1) a pay stub, Form W-2, "Wage and Tax Statement," or other employer-furnished document that sets forth the amount withheld during the taxable year for payment to Florida State University Foundation; and (2) a pledge card or other document prepared by or at the direction of the Florida State University Foundation that shows the Foundation’s name.

Donations of non-cash assets

Since the date of delivery is important for IRS purposes, be sure to allow plenty of time if you wish to make gifts of non-cash assets in this calendar year. For gifts of stock, the delivery is effective on the date the security arrives in Florida State’s account. Note that it is not effective on the date that the broker initiates the transfer. For some non-cash items, Form 8283 must be filed, and in certain cases, an appraisal is required. Be sure to check with your accountant and/or financial advisor if you’ve made gifts of non-cash items in this tax year.

In addition to the rules described above, we are pleased to take this opportunity to share information about some popular planning vehicles that may provide some important tax benefits to you and your loved ones.

Charitable Gift Annuities

This simple vehicle allows you to make a gift of cash or stock and receive a fixed amount of income for the remainder of your life. The fixed payout rates are fairly generous, and the donor is entitled to a substantial income tax deduction at the time the annuity is established. Anyone age 60 or older is eligible to establish a gift annuity with the FSU Foundation. Call us today to learn more, especially if you’re thinking about setting one up before December 31, 2025, so we can ensure your gift annuity is established before the end of the year and the Holiday Season.

Charitable IRA Rollover

With the permanent passing of the IRA charitable rollover provision, individuals 70½ years of age or older can make tax-free gifts of up to $108,000 to qualified charitable organizations, like the Florida State University Foundation, using funds transferred directly from their IRAs. If your gift is made before December 31, 2025, the transfer may count against your unsatisfied required minimum distribution. The transfer also generates neither taxable income nor a tax deduction, so you will receive the benefit even if you do not itemize your tax deductions. This tax-wise opportunity will make an immediate impact on Florida State and can be designated to any academic focus on campus.

Remainder interests in a Life Estate and Charitable Lead Trust

Today’s historically low interest rates make it the perfect time to set up a retained life estate or a charitable lead trust for the benefit of your favorite program at FSU. The retained life estate option allows you to deed your home to Florida State now while remaining in it for the rest of your life. You are entitled to a charitable income tax deduction immediately upon setting up the life estate. The charitable lead trust provides tremendous tax benefits for a donor who may be in need of a large tax deduction due to the sale of business, taking a large IRA distribution or perhaps receiving sizable stock options through their employer. A donor funds a lead trust with assets and the income earned from the lead trust is paid to the charity—in this case, Florida State University, for a term of years. At the end of the term of the trust, the assets revert back to the donor. FSU receives a substantial gift over time, the donor saves significantly on income tax, and the assets remain with the donor and their estate.

As you can see, the end of the calendar year provides many opportunities to revise your current plans and consider making new ones. The Office of Gift and Estate Planning at the FSU Foundation is here to help you work through any questions that arise along the way. Contact our office today at giftplanning@foundation.fsu.edu or by phone at (850) 644-0753.