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!

Sincerely,

DIRK P. KATSTRA
Executive Director

This is not intended as legal or tax advice. Please consult with your professional advisor before making any tax-based decisions.