NEW TAX LEGISLATION
Thank you for your generous support of UVA Athletics through your contribution to the Virginia Athletics Foundation. Your support allows our more than 700 student-athletes to succeed in the classroom and in competition.
As you probably have heard, the Tax Cuts and Jobs Act has been signed into law and is now in effect. This new law includes provisions that can affect your charitable contributions.
Previously, IRS Tax Code allowed donations to be 80 percent deductible if paying such amount provided the right to purchase tickets for seating at university athletics events. In the new tax law, this deduction will no longer be permissible.
In addition, the proposed tax reform legislation increases the standard deduction, which may reduce the incentive to contribute for taxpayers who do not itemize.
Contributions to the Virginia Athletics Foundation are still vitally important to the success of Virginia Athletics. Industry research suggests college athletics scholarships are second only to the GI Bill in providing scholarships for students to attend a college or university. Many student-athletes are first-generation college students who would never have an opportunity to attend college except for their athletics scholarship.
We are currently assessing the impact of the new tax law and are evaluating plans for future years. Contributions for seating priority have been an integral part of our fundraising effort for many years, especially to fund scholarships for student-athletes. This is the case at most of our peer institutions around the country.
We will provide updates as we know more about how this law may impact VAF members who purchase season tickets. Presently, there is no plan to change any part of how donations are accepted or how priority points are calculated. In addition, our giving levels will remain the same. The one exception is for the Scholarship Society level as these giving levels change each year so that the in-state and out-of-state levels cover the cost of scholarships.
It is important to note that not all contributions to VAF provide the right to purchase tickets. The changes in the IRS Tax Code only impact any contribution amount that provides a donor with the right to purchase tickets. Gifts to endowments, capital projects, special uses, etc. are types of contributions that currently don’t provide any ticket benefits unless specifically stated. Additionally, many donors give to the annual fund without taking advantage of the benefit of purchasing tickets. Donors can always waive their right to benefits to insure 100% deductibility.
As always, we advise you to consult with your own tax advisors to determine how this law might impact your particular situation.
Thank you again for your generous support of Virginia Athletics and UVA student-athletes. Go Hoos!
DIRK P. KATSTRA
Questions & Answers
Questions & Answers
If I make payments in 2017 toward future years, will my gifts qualify for first quarter bonus points? Yes. All payments received in 2017 will receive first quarter bonus points for subsequent years.
Can I pay gifts in 2017 for years beyond 2018? Yes. We can accept payment for gifts in any future year, including payments on existing pledges and gifts designated for purposes beyond the Annual Fund (e.g. Endowment, Capital, Coaches 10).
Should the proposed legislation go into effect, what will happen to the priority seating system in 2018? VAF is currently working in conjunction with the University and our colleagues around the country to better understand how we can maximize the tax benefits for VAF donors who make gifts for parking and ticketing benefits in future years. We expect to have an update once we know the exact language and implications of any legislation enacted. We expect to continue a donor priority seating model moving forward.
How should I let VAF know of my intentions to allocate money to future years? Simply indicate your exact intentions for how you wish gifts to be allocated on pledge forms, in the comments field provided for online giving or via phone. This will help to ensure accurate reporting on gift and tax receipts.
When does my gift need to be made in order to count in 2017? Any gifts made via phone, online or in person at the VAF office or via mail postmarked by December 31, 2017 will be considered by the IRS under the current tax code, which allows for a portion of gifts to VAF/other athletics booster organizations to be deducted. Our offices will be set up to take gifts Monday-Friday, 8:00 a.m.-5:00 p.m. through December 31. The VAF office will be closed December 25 and 26.