Gifts of Cash
A
gift of cash is the most popular type of charitable gift. The gift is
considered made on the date it is hand-delivered or received via mail
(postmark on envelope). A contribution using a credit card can be
deducted when the charge is made. Gifts of cash are fully tax
deductible up to 50 percent of your adjusted gross income. Any excess
over the 50 percent deduction ceiling may be carried forward as a
deduction on one's personal income tax return for up to five additional
years.
Matching Gifts
Thousands
of corporations and businesses now have programs to match employee
gifts, either in whole or in part. In some cases, gifts from spouses,
directors and retired employees are matched. Claflin urges you to
explore this possibility as it may double or, in some cases, triple
your gift. Ask your employer if your company is a matching gift company.
Gifts of Appreciated Assets
A
contribution of long-term appreciated assets entitles you to a
charitable contribution deduction equal to the fair market value of the
assets, such as securities, at the time of the gift. In addition, you
avoid capital gains tax on any appreciation of those securities. Gifts
of appreciated assets are fully tax deductible up to 30 percent of your
adjusted gross income for that year. Any excess of the 30 percent
deduction may be carried forward up to five additional years.
When
making a gift of long-term appreciated assets, you save twice -- on
income tax and on capital gains tax. You receive a charitable deduction
for the full fair market value of the gift and you save the capital
gains tax that would otherwise be due if you sold the appreciated asset.
Valuation
Securities
are considered a gift to the University on the date the certificate and
stock power pass unconditionally from your control (the postmark date
if mailed or the date on which we receive an overnight delivery
package) or the date the securities are transferred directly to Claflin
University’s brokerage account. To value the securities, a mean price
is calculated using the average of the high and low of the security on
the day you relinquish control to the University, as per IRS guidelines.
Gifts of Closely Held Stock
Gifts
of closely held stock exceeding $10,000 in value must have a fair
market value placed on them by a qualified independent appraiser as
required by the IRS for valuing gifts of non-publicly traded stock. An
independent CPA who maintains the books for a closely held corporation
is deemed to be qualified to provide a value for the stock of the
corporation. Gifts of $10,000 or less may be valued at the per-share
cash purchase price of the most recent transaction.
Gifts of Real Property
You
may contribute real property to the University, either as a bequest or
more commonly, by a lifetime transfer, and realize significant tax
benefits. The University looks at possible gifts of property on a
case-by-case basis. It is a detailed process but very workable and the
rewards are great.
Gifts of real
property may consist of almost any type of property such as personal or
recreational residence, a farm or ranch, a commercial building,
subdivision lots or any undeveloped parcel of land. The gift may be for
all of your interest in the property or an undivided fractional
interest.
Individual charitable
goals and financial needs determine which of the following methods of
giving real property is most appropriate for your situation.
Outright Gift
You
transfer the property by deed to Claflin University and it is
subsequently sold unless there is a special reason for holding the
particular parcel of real property.
Life Income Gift
Real
property is transferred to a trust where it is sold by the trustee. The
income is paid to you and/or other named beneficiaries. The income paid
to the beneficiaries for life depends on the net proceeds realized on
the sale of the real property in combination with a previously agreed
upon rate of return. At the death of the last of the life
beneficiaries, the assets of the trust pass to the University.
Life Tenancy Gift
In
very limited situations, ownership of the real property may be
transferred to Claflin University, but you retain the right to live on
the property for your lifetime. You receive an income tax charitable
contribution deduction for the present value of the remainder interest
of the gift. Upon the death of the "life tenant," the property may be
sold or used by the University.
Gifts of Personal Property
The
University's museum and archives are greatly enriched by gifts of
personal property such as rare books, manuscripts, paintings, artifacts
and other art objects. Our classrooms and research capabilities are
also enriched by contributions of computer hardware and software.
Making a gift using personal property provides a double benefit – a
charitable deduction plus avoidance of any potential capital-gain tax.
The amount of the deduction depends on the “related use” of the
property by Claflin.
If you have
any questions, please contact: The Division of Institutional
Advancement, Claflin University, 400 Magnolia Street, Orangeburg, SC
29115 – 888-223-7103, 803-535-5312, 803-535-5375