Maximizing Mineral Income

• Walter: "We were surprised that so many companies showed interest in our land. We were really surprised with the value of the ranch. We thought the ranch was worth around $500,000, but when we had it appraised, we were told it was worth $5 million because of the mineral rights."
• May: "We considered signing a mineral lease but had concerns about how the extra income from the royalties would affect our taxes."

Walter and May contacted us to inquire about making a charitable gift of their land. They learned that they could transfer the property to fund a special type of charitable remainder unitrust and control the income they received each year.

• May: "I was thrilled to learn that we would receive a very large charitable deduction. In addition, the transfer would be tax free and the income from the trust would be taxed in a more favorable way."
• Walter: "We decided to transfer the ranch to a trust. The trust entered into a mineral lease and the trust earns royalties from the lease each year. The trust pays us all of the income and will for the rest of our lives. After that, the remaining assets of the trust will go to fund the causes most important to us."

What is a gift of mineral interests?

A gift of mineral interests, such as oil, gas, or precious metals, can be a meaningful way to support Utah Valley University (UVU). These gifts may provide potential tax advantages and help create a lasting legacy that reflects your values.

Considering a gift of mineral interests?

UVU welcomes gifts that can be used directly or sold to support our mission. All gifts-in-kind are subject to review by the university's Gift Acceptance Committee. Because mineral interests often require special handling, UVU is only able to accept them if they can be readily sold.

If your mineral interests are not immediately marketable, there may still be a meaningful way to make a difference. By contributing them to a charitable remainder trust (CRT), you can create a gift that benefits both you and the university. A CRT may provide income for you or your loved ones, offer potential tax advantages, and ultimately support UVU's students and programs.

We encourage you to consult with your legal and tax advisors to determine the approach that best fits your goals. We'd be delighted to speak with you about how a gift to the university can support programs and students.

Is a gift of mineral interests right for you?

Mineral interests, such as oil, gas, or other natural resource rights, can make a powerful and lasting gift. If you own mineral interests and are exploring charitable planning options, consider making a gift to Utah Valley University (UVU). Your contribution can help advance UVU's mission while offering potential tax benefits and a meaningful legacy.

We'd be delighted to speak with you about how your mineral interests could be used to support UVU's programs and students. Contact us to explore a giving strategy that aligns with your goals and values.

Please note: The information above is representative of a typical donor and may or may not be an actual donor to our organization. Since your benefits may be different, you may want to create a printable illustration of your income and tax benefits with our calculators.