Gifts of Cash

> You're considering an outright gift made during your lifetime
> You want to maximize your charitable deduction
> You want to deliver benefits to the UT Health Science Center immediately

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A planned gift to the Brown

Foundation Institute of Molecular

Medicine for the Prevention of Human

Diseases could help provide the

advanced technology needed for

scientists like Dr. Rick Wetzel and

Ph.D. student Travis Hollmann to

conduct mouse stem cell research to

generate models of human disease.

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Gifts of cash can be deducted against a larger portion of your taxable income than can gifts of appreciated assets. Cash is the simplest donation and provides us immediate benefits. Your gift can be made outright or fund one of our life income arrangements.

The IRS allows you to claim charitable deductions for gifts of cash up to 50 percent of your adjusted gross income (AGI -- your total taxable income for the year). Alternately, if you use appreciated property instead of cash to make your gifts, you can claim deductions up to only 30 percent of AGI. Although excess deductions may be claimed over the five years after the gift is made, if you are looking for substantial immediate tax deductions you may be better served giving cash instead of property:

	Gift of Cash	Gift of Appreciated Assets
Donor's AGI	$300,000	$300,000
Amount of gift	$200,000	$200,000
Asset donated	Cash	Stock
Total charitable deduction	$200,000	$200,000
Deductible against % of AGI	50%	30%
Deduction in 1st year	$150,000	$90,000
Net taxable income, 1st year	$150,000	$210,000
Net tax in 1st year @35% rate	$52,500	$73,500
Carryover deduction	$50,000	$110,000

If you are considering a gift of cash call us at 713-500-3200 so that we can assist you through every step of the process

The University of Texas Health Science Center at Houston
7000 Fannin, Suite 1200
Houston, TX 77030
713-500-3200 | 713-500-3216 (fax)
E-mail: Shirley.Druggan@uth.tmc.edu