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FISCAL MANAGEMENT OPERATIONS GUIDE

Tax-Exempt Status of Gifts To The University

In addition to the philanthropic motivation for gifts to the University, donors are permitted income tax deductions to the extent permitted by federal and state law. For the transfer of funds to the University to qualify as a "gift," the funds must be for the exclusive use of and under the control of the University. For example, a transfer by a donor to fund a scholarship for a designated student, or for the purpose of benefiting a designated third party is not a gift to the University, but rather a gift to the student or third party. Such funds for the benefit of specifically named students or third parties may not be accounted for as "gifts" to the University and do not qualify as federal or state income tax deductions.

The Internal Revenue Service recognizes the University of Texas at San Antonio as tax exempt under section 170(b)(1)(A)(iv). Some corporations and foundations, by charter, are only permitted to support IRS 501(c)(3) organizations. While the University itself does not have this status, gifts may be directed to the University of Texas Foundation, which is a 501(c)(3) organization, for the benefit of UTSA, thus qualifying the donor for a tax deduction.