CHARITABLE CONTRIBUTIONS

VAF is a 501(c)(3) tax-exempt organization recognized as a public charity. In addition, gifts made to the Foundation qualify for the charitable contribution deduction under Section 170(b)(1)(A).

Gifts that qualify for a full income tax deduction are those not associated with the right to purchase tickets for seating at home university athletics events. This includes gifts made to the endowment, Sports Enhancement Funds, capital projects, special projects, athletics department operations, and Annual Fund or Friends Of contributions where the donor waives their right to benefits.

According to current IRS regulations, gifts that are not tax-deductible are those that provide the right to purchase tickets for seating at home university athletics events. Please refer to our Giving Levels chart at http://virginiaathleticsfoundation.com/giving-levels/ to determine the portion of your Annual Fund or Friends Of gifts that is associated with the right to purchase tickets. In addition, per seat commitments, or suite lease commitments associated directly with home seating benefits may not be tax-deductible.

The Consolidated Appropriations Act of 2021 Extends CARES Act Provisions

The Coronavirus Aid, Relief, and Economic Security (CARES) Act signed into law in 2020 included charitable giving incentives that have been extended through 2021 by the Consolidated Appropriations Act of 2021 (the Bill).

The Bill extends the benefit that allows taxpayers who take the standard deduction (rather than itemize) to claim a deduction up to $300 for gifts to public charities. In 2021, the deduction expands to $300 per single filer or $600 for those married and filing jointly. Taxpayers who claim this benefit in 2020 are limited to deducting a maximum amount of $300; the expansion of the benefit to $600 for married couples only applies in 2021 and not in 2020.

The Bill also extends the CARES Act provision that allows itemizers to elect an unlimited deduction (up to 100% of adjusted gross income) for qualified cash gifts to public charities. This increased AGI limit does not apply to donations made to private foundations, donor advised funds, or split interest trusts; however, the deduction produced by funding a charitable gift annuity with cash will qualify for this enhanced AGI limitation if the annuity is established with a public charity in 2020 or 2021.

Required Minimum Distributions Return

While the CARES Act suspended Required Minimum Distributions (RMDs) from Individual Retirement Accounts for 2020, RMDs have returned for 2021. If you are at least 70 1/2 years old, you may be eligible to make a Qualified Charitable Distribution (QCD) from your IRA. QCDs count toward your required minimum distribution (RMD) if you are required to take one. Amounts distributed to support the Virginia Athletics Foundation that would otherwise be deductible as a charitable contribution will be excluded from federal income. Gifts to VAF that are associated with the right to purchase tickets to home football or men’s basketball games are not deductible.

Contributions to the Virginia Athletics Foundation are vitally important to the success of Virginia Athletics. As is the case with most of our peer institutions around the country, contributions for seating priority have been an integral part of our fundraising effort for many years, especially to fund scholarships for student-athletes.

As always, we do not provide tax advice; we advise you to consult with your own tax advisors to determine the tax deductibility of your gift.