| 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 double 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. Transfer the
stock to the Pasadena City College Foundation to make full use
of the potential tax savings.
If you wish to donate stock that has fallen in value, you should
sell the stock at a loss and donate the proceeds. The loss can
be used to offset gains, and you can receive the normal charitable
deduction for donating the proceeds.
- 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 foundation@pasadena.edu. |
