WAYS TO GIVE
Donating property or securities directly to Seattle Pacific University may carry some very attractive tax benefits. Take a moment to read about them, then give us a call at (206) 281-2702 or email us today. We'll discuss the options with you and help you determine if this means of creative stewardship is a good fit in your circumstance.
Keeping the Whole Gift to Give as You Wish
Imagine you're mailing a present to a loved one. One delivery company promises to deliver your gift free. The other company says it will keep one-third of your gift as pay. Does it matter which company you choose? Of course it does! You want your entire gift to arrive safely.
The same holds true in giving appreciated property. How the gift is "delivered" can be as important as the gift itself. Unless care is taken, up to one-third of a donation may go to the IRS, but there are easy ways to sidestep this problem.
As you know, the federal government claims a portion of nearly all income, including the appreciation of your investments and property. So if you intend to donate real estate that has increased in value, the IRS will claim a portion of the profits when you sell your property. The same holds true for stocks that have appreciated in value. When you cash in, so does Uncle Sam.
Yet this tax doesn't need to diminish your charitable giving. The answer is simple: don't sell. Donate the property or securities directly to SPU. Because the University is tax exempt, it can sell the property or stock tax-free. This saves you the paperwork of selling while substantially increasing the size of your gift. And because SPU receives the full market value, your charitable deduction will be substantially larger than if you had sold the property yourself.
There are several options for giving appreciated property or stock. Below are a couple of examples of how this might work in a real life situation. Please bear in mind that the dollar amounts listed are for demonstration purposes only. Tax laws change yearly so please contact us for a free consultation and discuss your plans with your financial or tax consultant.
For more information about gifting real estate or other personal property to SPU, please click on the links below: