Ways of Giving - Outright Gifts
Outright gifts allow you to see your gifts at work during your lifetime. All outright gifts can result in income tax savings, but donors may realize multiple benefits by carefully structuring such gifts. Donors may give unrestricted funds or choose to target a gift to a particular program.
Ways to give outright gifts include:
- Cash: The simplest way to give. Your gift is tax deductible in the year in which it is made. You can deduct an amount equal to 50% of your adjusted gross income. Amounts over 50% can be carried over for use during the next five years.
- Securities: Enjoy tax savings. Gifts of appreciated securities can provide substantial income tax savings. If you have held securities for more than a year, you are allowed to deduct the market value of the securities (without paying tax on the appreciation) for an amount up to 30% of your adjusted gross income in the year you donate. Amounts over 30% can be used over the next five years. Remember, do not sell appreciated securities and then donate the proceeds. Instead, transfer the stock to the Pasadena City College Foundation to make full use of the potential tax savings.
Please note that tax laws are subject to change; it is important to consult your tax advisor before selling securities.
- Real Estate: Maximize the value of your property. During the year that you transfer title of your property to the Pasadena City College Foundation, you can take a charitable income tax deduction for up to 30% of your adjusted gross income. Amounts over 30% can be carried over for use during the next five years. To take advantage of potential tax deductions, it is important that you transfer title to appreciated real estate that you have held more than a year to the Pasadena City College Foundation rather than selling and donating the proceeds. You can then use the fair market value to establish your charitable deduction without being subject to capital gains tax on a sale.
Real estate gifts can offer many benefits to donors, but they can be complicated. We ask that you discuss your situation with us in advance of making your gift. Our Board and financial advisors must evaluate your potential gift to decide if the gift can be accepted, with marketability an important factor, and can insure that you structure the gift to your advantage.
- Personal Property: Your valuable possessions can benefit Pasadena City College and our educational mission. The Pasadena City College Foundation can accept any type of asset as a charitable contribution, including personal property such as art, jewelry, and antiques. However, donors can deduct the fair market value of the gift only if it is related to PCC's function as an educational institution. For example, if the gift of a rare book or manuscript can be used by the library, you can deduct the fair market value. For gifts that we must sell to support our educational mission, donors can deduct only the cost basis. Call us to discuss the appraisal and classification of a donation of personal property. (The restriction regarding direct relationship to Pasadena City College’s educational mission does not apply to bequests, only to lifetime gifts. Your estate can deduct the fair market value of any bequest of personal property.)
For information on making an outright gift, call the Foundation offices at (626) 585-7065 or send an email to email@example.com.