Donor Resources

Philanthropy is vital to Oakland University and helps us achieve extraordinary things every day. Philanthropic support encourages the pursuit of a forward-thinking and strategic vision which is vital to our success.

Whether you are a corporate donor, foundation partner or an individual supporter, a longtime patron or first-time giver, we strive to meet your needs, answer your questions and provide you with the resources to direct and inspire your philanthropy.

Year-End Considerations for Charitable Giving

As the end of another year quickly approaches, you may find yourself reviewing your strategies for charitable giving. Please consider recent legislation that may impact your strategy. The following information is for general purposes only. We encourage you to consult your financial advisor or tax preparer for personalized advice.

In July 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA includes updates to federal tax rules that impact charitable giving - specifically, those related to charitable tax deductions. By understanding these new rules, you can maximize your philanthropic impact while potentially reducing your tax burden.

Three Changes from the One Big Beautiful Bill Act

1. New limit on charitable deduction value - Starting in 2026, those in the 37% federal income tax bracket will have the value of their charitable deduction benefits capped at 35%. This means that if you are in the highest tax bracket and you itemize deductions, your tax break will be somewhat smaller.

2. Higher deduction floor for those who itemize - Starting in 2026, itemized charitable deductions will only apply if your total contributions exceed 0.5% of your AGI. This means smaller donations may only reduce your tax burden if they clear this threshold.

3. Universal deduction for non-itemizers - Starting in 2026, those who take the standard deduction can also deduct up to $1,000 (single filers) or $2,000 (married couples filing jointly) for cash gifts made directly to qualified operating charities. This deduction excludes donor-advised fund (DAF) contributions. This means that if you don't itemize deductions, you have a new way to reduce your tax burden while supporting causes that are important to you through charitable giving.

Now is a good time to review year-end giving strategies and update your overall financial plan. Charitable giving can provide you an opportunity to maximize your philanthropic impact as a potential tax-reduction strategy.

We encourage you to talk to your financial advisor or tax preparer about how recent federal changes may affect you.

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Gift Reinvestment Fee FAQs

Why does OU have a gift reinvestment fee? How does the gift reinvestment fee support University Advancement?
The reinvestment fee on non-endowed gifts supports overall advancement efforts for Oakland University.
How is the gift reinvestment fee utilized?
The gift reinvestment fee is a one-time assessment to assist advancement activities in support of Oakland University’s educational, research, and service mission. It is a one-time administrative fee equal to 5% of donations to non-endowed funds.
Is the gift reinvestment fee unique to OU?
This type of reinvestment fee is a best-practice for universities across the country, including many of our peer institutions. Gift reinvestment fees from our peers range from 2% to more than 8% annually.
Does the gift reinvestment fee affect tax deductibility of contributions?
No, the University gift reinvestment fee does not affect the tax deductibility of your contributions. Donors receive full tax credit and a receipt for the full amount of their gifts.
What types of gifts are subject to the gift reinvestment fee?
The gift reinvestment fee applies to all cash gifts and pledge payments made to non-endowment funds including all testamentary gifts and matured planned gift distributions from charitable gift annuities, life insurance, charitable remainder trusts, IRA charitable rollovers, donor-advised funds, and charitable lead trusts. Pledge payments made to non-endowment pledges that existed prior to February 15, 2024 will not be assessed the gift reinvestment fee.
Are there exceptions to the gift reinvestment fee?
The university gift reinvestment fee will not apply to documented gift agreements, including documented pledges, executed prior to February 15, 2024, non-cash gifts (gifts-in-kind) made to the University, charitable life insurance premium payments, sponsored research grants, or to foundations that have a pre-existing written policy against providing gifts to institutions where gift fees exist.
Does the gift reinvestment fee apply to endowed funds?
No, the gift fee does not apply to funds in the endowment pool.
Are administrative costs common for non-profits?
Yes. According to Charity Navigator, “seven out of ten charities – spend at least 70% of their expenses directly on their programs”, with under 30% going to administrative costs. And, CharityWatch, “considers a charity to be highly efficient when our end calculations produce a Program percent of 75% or greater.” In the case of Oakland University, the percent that goes toward program support is 95% with 5% going towards administrative costs.
Do other universities have similar gift reinvestment fees?
Yes. A sampling includes Arizona State U: 5%; Cal Poly Pomona: 5%; Eastern Washington U: 5%; Georgia Southern U: 5%; Johns Hopkins U: 4%; NC State U: 5%; North Dakota State U: 5%; Portland State U: 5%; Stony Brook U: 10%; U of Alaska: 5%; U of Arizona: 6%; U of Connecticut: 5%; U of Florida: 2.5%; U of Iowa: 5%; U of Memphis: 5%; U of Missouri: 5%; U of South Carolina: 5%; U of Virginia: 5%; U of Washington: 5%; UC San Francisco: 10%; Utah Valley: 5%; Washington State U: 5%; Western Oregon U: 3%; Wright State U: 5%

University Advancement

Frances M. Moceri House
3151 University Dr.
Auburn Hills, MI 48326-2359
(location map)
(248) 370-4504
Fax: (248) 364-6101
[email protected]