Gifts of Securities, Real and Personal Property
Federal tax laws encourage gifts of securities, real and personal property to the South Dakota State University Foundation by permitting the donor to take a charitable contribution deduction for a gift in support of the University. The donor gives the Foundation the full dollar value of the gift in support of its mission and simultaneously removes the amount of the gift from being taxed at the donor’s top income tax and estate tax bracket.
Gifts of IRAs/Pension Funds
Pension plans and Individuals Retirement Accounts are frequently the most rapidly growing asset for retired persons. Donors may save cumulative income and estate taxes (possibly up to 75 percent) by making a bequest from an IRA or other qualified plan to South Dakota State University. Another alternative would be to designate a charitable trust created in a will as the beneficiary of retirement plan assets. This option would allow other family members to receive income for a term of years.
Gifts of Undivided Interest
Donors may make gifts of a percentage interest of their entire interest in real and personal property. Federal tax laws encourage gifts of undivided interests by granting the donor a current income tax deduction for the gift. Therefore, the donor makes a gift in support of the University and simultaneously removes the gift from being taxed at the donor’s top tax bracket.
Gifts of Closely Held Stock
Donors may make gifts of closely held stock to the South Dakota State University Foundation and receive a charitable contribution deduction for the value of the stock. Current Internal Revenue Service regulations on substantiation of the stock value will be followed.
Gifts of Insurance Policies
Donors may make gifts of insurance policies and receive a charitable contribution deduction for the value of the policy that they may give to the South Dakota State University Foundation. Donors also may purchase life insurance policies and name the Foundation as the owner of the policy and take a charitable contribution deduction for each premium payment.
The Foundation will also enter into “bargain-sale” arrangements with a donor, whereby the Foundation purchases appreciated securities or other property at the donor’s cost basis, or at some other price less than the current fair market value. In such instances, the donor’s tax deduction is the difference between the sale price and the fair market value of the assets.
Tangible Personal Property
Tangible personal property items—such as certain art objects, coins, jewelry, collectibles, etc.—may be given to the Foundation. In most cases, the donor should provide: a qualified appraisal for items of more than $5,000 in value or proof of value for items below $5,000. Items of personal property that cannot be kept for the University’s related use will be sold.