FAQ's: Oregon Venture Development Fund

What is Oregon's University Venture Development Fund?

The Oregon State Legislature has authorized each public university to establish a venture development fund. The goals are to raise new investments in research, entrepreneurial and commercially viable initiatives, and to offer students experience in applying research to commercial activities. This exciting program will provide "proof-of-concept" funding essential to transforming today's ideas into tomorrow's business.

Why support a University Venture Development Fund?

Supporting Portland State through the venture development fund makes practical sense. Your investment helps to build a stronger Oregon economy, thriving communities and a better future for all Oregonians.

How does the fund work?

The legislature has authorized a combined total of $14 million to be raised in private contributions by the state's public universities. Donations will be used exclusively to help move university-based research through the difficult early stages of commercialization. Donors who contribute to a University Venture Development Fund will receive a significiant tax credit.

What is a tax credit? How much am I eligible for?

Unlike a tax deduction that only reduces the amount of your taxable income, a tax credit reduces the amount of tax you owe. Your gift to PSU's venture development fund will reduce your Oregon income tax bill.

When you make an unrestricted gift of cash or publicly traded stock to PSU's venture development fund you will receive a tax credit certificate setting forth the amount of your donation. You are then eligible for an Oregon income tax credit equal to 60 percent of the donation. This is not a deduction but a dollar-for-dollar tax credit against Oregon income tax that may be claimed in addition to a federal charitable contribution tax deduction.

The amount you may claim each year is 20 percent of your contributions--not to exceed $50,000 or your Oregon tax liability, whichever is less. The maximum available credit must be taken in consecutive years until it is expended.

Of course, tax benefits are always subject to applicable law. To be sure you maximize the benefits of this program and how it meets your philanthropic goals, please consult your tax advisor.

Is there a time line?

Yes. The tax credit certificates will be issued in chronological order based upon the date we receive donor applications. Once Portland State has distributed its allocation of tax credits under this program ($.88 million), we will still be able to receive donations into the fund, but will not be able to issue additional tax credit certificates. The sooner you participate the more likely that you will qualify for the tax credit benefit.

May I direct my contribution to the research program of my choice?

PSU prefers undesignated donations so that we can direct funds to our most promising research-to-commercialization projects each year. If you would prefer to designate your gift to a particular college or school at PSU, we would be happy to discuss this with you.

Is this program only for individuals, or can companies participate?

Both individual and companies may contribute and receive tax credits through this program.

What if I'm not an Oregon tax payer? Can I still give to the Venture Development Fund?

Yes! You do not have to be an Oregon tax payer to donate to the fund; you just will not be eligible for the Oregon State tax credit.

Where can I get more information about making a gift?

Please contact Mark Langseth, Assistant Vice President for Development, at (503) 725-8798 or langseth@pdx.edu.