posted on: Thursday, December 08, 2005

New York University, which as of August 2003 had a $2.2 billion endowment and annual revenues approaching the same amount, is circulating a letter to donors, urging them to give to the University before the end of the year so they can take advantage of the charitable giving tax incentives that were passed into law in the wake of Hurricane Katrina and the resulting relief effort.

If that’s not bad enough, NYU’s George H. Heyman’s Center for Philanthropy and Fundraising is forwarding the letter to its nonprofit contacts, encouraging them to use a similar gimmick to attract donations.

Apparently, at NYU, now is a time to reap and reap and then reap some more.

The text of the email is below:


SPECIAL NEWSLETTER

Of all the letters to donors on the Katrina tax incentive, I believe the one below, sent by Debra A. LaMorte, Senior Vice President, Development and Alumni Relations here at NYU is the best. Perhaps this can help you.--Naomi Levine

Dear [Recipient]:

As the holiday season approaches, we want to take a moment to tell you once more that we are deeply grateful for your ongoing commitment and leadership, and offer our warmest wishes to you and your family for the season.

Because you are currently fulfilling a leadership pledge to The Campaign for NYU, we thought you would be interested to learn more about a new charitable giving opportunity that may make it easier for you to satisfy your generous pledge to NYU.

In the wake of Katrina, Congress has provided additional incentives for charitable giving. Donors who make cash gifts to a charity such as NYU can claim an income tax charitable deduction for up to 100% of adjusted gross income – as opposed to the usual limitation of 50% of adjusted gross income. If you have run up against the limitation on the tax deductibility of your cash charitable gifts in the past, this change in the law effectively suspends that limitation until December 31. So this year you have a unique opportunity to make substantial cash gifts and claim larger charitable deductions immediately.

For example, since you have an outstanding pledge, you may want to consider prepaying future installments, in order to take advantage of the increased charitable deduction available this year.

This temporary change in the law may also make it attractive for you to withdraw funds from your IRA or similar retirement plan in order to make a charitable gift – and deduct the entire amount this year.

Remember that you must make your gift no later than December 31 to take advantage of these new opportunities and receive an increased deduction for this year. So you will want to speak with your own advisor – or the NYU gift planning office at (212) 998-6960 – to find out how you can benefit.

Once again, many, many thanks for your wonderful generosity. Our best wishes for a wonderful holiday season!

Warmest regards.

A letter like this is a terrific way to provide donors and nonprofits with an opportunity to further their mutual goal of helping others and improving the world. I urge you to be sure your nonprofit and donors are aware of this incentive.