Donating an Asset
- Gifts of Stock
- Certificate of Deposit Transfer
- Donating Securities and Mutual Funds
- Real Estate via Outright Gift
- Real Estate via Bargain Price
- Real Estate via Life Estate
- Real Estate Charitable Remainder Trusts
- Existing Life Income Gift
- Life Insurance
- Retirement Funds
- Tangible Personal Property
Gift of Stock (back to top)
Stock provides for a tax-wise donation because it allows the donor to avoid paying capital gains tax on the appreciated value of the asset. The capital gains tax is the tax levied on the difference between the original investment in the financial instrument and the sale price. In some cases, the donor also receives a charitable tax deduction for her gift. This makes donating stock a very attractive option, and an excellent way for donor dollars to have a greater impact on Saint Mary's College.
Important information when making a gift of stock:
- The legal name of the College is "Saint Mary's College, Notre Dame"
- Our federal taxpayer identification number is 35-0868158
- Request your broker to transfer the stated number of shares electronically to:
National Financial Services DTCC#0226
For the benefit of: Saint Mary's College, Notre Dame, Indiana
- Please notify the College in writing of the electronic transfer including the number and name of the stock being transferred
- For questions, contact Adaline Cashore '70, Director of Donor Relations, (574) 284-4706
Securities and Mutual Funds (back to top)
Donating Securities and Mutual Funds follows the same principles as donating stock. Giving away the long-term appreciated securities allows a donor to avoid all or some of the capital gain, rather than pay taxes on it and allows him or her to take a charitable tax deduction. By donating the appreciated asset, the donor avoids paying the tax, which allows the gift to have a greater impact on Saint Mary's.
- The donor must have owned the shares at least 12 months and one day (the IRS definition of “long-term”). If there is a loss in the shares, the donor should sell them, claim the loss on his or her federal taxes, and donate the cash to charity.
- Many donors are amazed at the diversification they can achieve, without losing economic power to capital gains tax, when they fund a charitable remainder trust that returns lifetime income to them and passes to charity at their death. Transferring appreciated assets to a charitable remainder trust can alleviate capital gains tax issues and provide a way to diversify income-producing investments—all while making a charitable gift and receiving a charitable income tax deduction.
Certificate of Deposit Transfer (back to top)
When a certificate of deposit ("CDs") comes due, in the current low interest rate environment, it may be advantageous to convert the cash into a higher-rate charitable gift annuity. Please see our information about charitable gift annuities.
Real Estate (back to top)
There are many ways to structure a gift of real property to benefit Saint Mary's College. Whether the donor's objective is to dispose of property that she no longer wants or needs, downsize from a primary residence, live in the house and achieve an income tax deduction, or even receive a stream of income in exchange for the property, there are options available.
REAL ESTATE VIA OUTRIGHT GIFT (back to top)
A donor can deed Saint Mary’s property with no strings attached, gain an income tax deduction for the appraised value of the home, and designate how the contribution will be used to further Saint Mary’s mission. Potential donors need a recent appraisal in order to claim an immediate tax deduction for the value of their home. Donating the property outright also avoids capital gains tax, and Saint Mary’s can then sell the property and use the proceeds to fund priorities at the College.
A REAL ESTATE GIFT AT A BARGAIN PRICE (back to top)
If a donor would like to make a gift to charity but needs some of the proceeds from the sale of the home, a donor can agree to sell Saint Mary’s the home at a bargain price. This is called a bargain sale. For example, upon downsizing there can be a significant difference between the sale price of a large home and the purchase price of a smaller new home or condo. Saint Mary's will purchase the old home at a reduced price and then sell it at the fair market value. The donor can then claim a charitable deduction equal to the difference between the money she received from the sale to Saint Mary's and the fair market sale price. This is a particularly useful device if the house has appreciated more than $250,000 during the period of home ownership. There is normally capital gains tax due when the gain of value in the house is more than $250,000, but with a qualifying donation to Saint Mary's, that tax is eliminated.
A REAL ESTATE GIFT SUBJECT TO A LIFE ESTATE (back to top)
It’s possible to continue to live in a home and irrevocably deed it to charity at the owner's death. The gift arrangement is called a retained life estate. A donor can claim a federal income tax deduction for a portion of the value of the property, and remains responsible for all the taxes, maintenance and insurance while she is alive. If at any time the donor decides to move from the property, the gift can be accelerated and an additional income tax deduction may be taken. Upon the donor's death, the property is sold for the benefit of Saint Mary's.
A REAL ESTATE GIFT WITH AN INCOME STREAM (back to top)
If the donor does not mind moving from her home, and does not need the proceeds to purchase another residence, but wants to secure an income stream, a modified chartiable remainder trust will accomplish that goal. The donor donates the home to a charitable remainder trust. The trustee of the trust then sells the house and reinvests the proceeds in a diverse portfolio of liquid assets. The donor claims a charitable income tax deduction for a portion of the home’s value the year the gift was made. The donor also receives an income stream at an annuity rate. After the death of the donor, Saint Mary’s receives the trust principal to fund a gift in the area of the donor's choice.
Existing Life Income Gift (back to top)
If someone is currently receiving payments from a life income gift and no longer needs the income, a donor can renounce her remaining life interest in that gift and receive an immediate income tax deduction for the present value of the income that's given up.
This concept applies to other streams of income as well. It is possible to surrender a life income interest in a pooled income fund, charitable remainder trust or gift annuity and receive gift recognition and an additional tax deduction for the future income stream that the donor gives up.
Life Insurance (back to top)
Some Alumnae and friends of the college find that their life insurance policies have outlived their usefulness when they reach retirement. This makes donating a life insurance policy a prime opportunity to make a gift to Saint Mary's. In exchange for the policy, the donor is allowed a charitable income tax deduction for the cash surrender value of the policy.
Retirement Funds (back to top)
Retirement funds are designed to be used by their holders during their lifetime. This means that any retirement accounts remaining at the time of the holder's death are taxed at an extremely high rate, up to 80%. Fortunately, retirement funds can be donated to charity without losing any of the impact of the amount accumulated. Retirement accounts donated to Saint Mary's are not taxed, allowing the holder to direct more liquid assets in their estate to their heirs.
Tangible Personal Property (back to top)
Your antique furniture or valuable artwork could make a wonderful charitable gift. Donating a valuable item to charity can help reduce your tax liability.
If a gift of tangible personal property is for a purpose related to Saint Mary’s educational mission, we will be happy to accept it. Books, artwork, and equipment can be highly welcome additions to Saint Mary’s academic offerings and physical resources. Please contact Adaline Cashore '70, Director of Donor Relations, at (574) 284-4706 if you think you may have a gift that could enrich life at Saint Mary's.
If the college is willing to accept the item proposed for donation, the donor can claim a full fair market value deduction on her federal taxes. The IRS requires a qualified appraisal of the donated item if it is worth more than $5,000, and the rules are quite specific. See IRS Publication 561, Determining the Value of Donated Property. Please call the Office of Planned and Special Gifts for more information.
A charitable deduction is limited to 30% of your adjusted gross income in the year of the gift. Any excess deduction that cannot be claimed in the year the gift is made can be carried over for up to five additional years.
Sometimes Saint Mary's receives personal property which it cannot use. For example, antique cars, boats, or jewelry. There may be a charitable organization that can accept those gifts in furtherance of their mission, but Saint Mary’s cannot. Saint Mary's does not accept gifts of personal property that it cannot use.