Gifts of Stock or Property

Gifts of stock or property are an excellent way to lend support to the College while sometimes realizing substantial tax benefits for the donor.  Since such contributions are subject to various requirements, it is strongly recommended that you seek the advice of a qualified tax advisor to discuss the type of gift, limitations on deductibility, timing or other applicable considerations.

Gifts of appreciated real property, such as a personal residence, vacation home, commercial property, or land, will generally entitle you to a tax deduction equal to the fair market value of the property. You may also avoid capital gains tax on the transfer, provided you have owned the property for more than one year and it qualifies as capital gain property.

There are similar tax advantages when making a gift of publicly-traded stock or marketable securities owned for more than one year. A tax deduction is allowed for the full fair market value, and the donor pays no capital gains tax on the appreciation when the gift is made.

Gifts of closely-held, non-publicly-traded stock, such as that of a family held enterprise, generally qualify for the same tax advantages as gifts of marketable securities. One attractive alternative is available for donors who are subject to buy-sell agreements or do not wish to sell stock outside of the closely-held entity. The donor may make an outright gift of the stock to Goldey-Beacom College, then the corporation will purchase the stock back from the College for cash.

Gifts of securities can be handled one of two ways:

The College also accepts gifts of personal property (property other than land or buildings) such as books, art, or archival material that can be used in our educational mission. Other personal property, such as precious metals, jewelry or other valuables unrelated to our educational mission, can also be accepted as gifts.  If the gift is related to our mission, you are entitled to a charitable deduction for the full fair market value of the property. If the personal property is not of a type that the College can use in its educational mission, your contribution deduction is limited to the lesser of your cost basis or the fair market value of the property. In such a case, the College must be free to sell the property and use the proceeds.

Generally, all gifts of property or groups of similar items valued at more than $5,000 require a qualified written appraisal. Gifts of marketable securities are exempt from the appraisal requirements, as are gifts of non-publicly-traded stock valued at $10,000 or less.

If you are considering making a gift of property to the College, it is important that you evaluate the tax consequences of such gifts with your tax advisor. For more information, please contact us at (302) 225-6273 or at gift@gbc.edu.