Outright Gifts
An outright gift is just what its name implies, a gift transferred immediately from you to N.C. A&T University. These gifts can include include cash, securities, tangible personal property (gifts-in-kind) or real estate.
Gifts of Cash
There is no easier way to earn a charitable deduction, and support the N.C. A&T University Foundation at the same time, than by simply writing a check! A gift of cash (or, of course, by check) is the most popular type of charitable gift. The gift is considered made on the date it is hand-delivered or a check is mailed (postmark on envelope). A contribution on a credit card can be deducted when the charge is made even though the bill is not paid until the following year.
You can also make a gift through an automatic bank draft. Because of the availability of the income tax charitable contribution deduction, the net cost to you of a cash gift is lower than the face value of the gift.
If you itemize, your cash gift is fully deductible for federal income tax purposes up to 50% of your adjusted gross income. If your total gift should exceed this limitation, the excess may be carried forward for tax purposes for up to five additional years.
Matching Gifts
A number of businesses and corporations now have programs to match employee gifts of cash either in whole or in part. Ask your employer about it. If your employer or parent company has a matching gift program, your personal gift to the N.C. A&T University Foundation may be matched or in some cases doubled or more. In some cases, gifts from spouses and retired employees are also matched. We urge you to explore this possibility.
To find out about this program, simply contact your Human Resources Department and ask them if they have a matching gifts program. Then ask for the procedure and the associated forms your company uses for this purpose.
Giving Gifts of Appreciated Assets
Giving appreciated assets offers you two-fold tax savings. First, you avoid paying a capital gains tax on the increase of value of your asset. Secondly, you will receive a tax deduction for the full fair market value of the asset on the date of the gift. For income tax purposes, the value of such gifts may be deducted up to 30% of the adjusted gross income with an additional five-year carry forward.
A contribution of long-term appreciated assets to the N.C. A&T University Foundation entitles you to an income tax charitable deduction equal to the fair market value of the securities at the time of the gift. You also avoid capital gains tax on any appreciation of those securities.
Gifts of appreciated assets are fully deductible up to 30 percent of your adjusted gross income for that year. Any excess of the 30 percent deduction can be carried forward up to five additional years.
Appreciated Asset Example:
- When making a gift of long-term appreciated assets, you save twice on income tax and capital gains tax, and you get a charitable deduction for the full fair market value of the gift. You save the capital gains tax that would otherwise be payable upon the sale of an appreciated asset.
Donor in 28% tax bracket gives stock or property that costs — $20,000 and is now worth — $100,000
Donor obtains an income tax deduction for the property's current fair market value — $100,000
Which produces income savings of (10,000 x 28) $28,000
Plus capital gains tax savings of ($80,000 20%) $16,000
Total tax savings — $44,000
Net cost of gift — $66,000
