Types of Outright Gifts

Cash Gifts
Gifts of Securities
Gifts of Tangible Personal Property
Real Estate
Life Insurance
Wealth Replacement Option

Cash Gifts:
Cash is the most common type of charitable gift. When we receive your gift it will be receipted on that date. Cash gifts are deductible up to 50 percent of your adjusted gross income (income for tax purposes before itemized deductions and personal exemptions); any excess can be deducted over the next five years subject to the same 50 percent limitation.
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Gifts of Securities:
You may give securities either by transfer of the certificate of ownership or through account transfer arranged by your broker. In each case, you avoid the tax on any potential gain and receive a deduction for the full fair market value of securities.
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Gifts of Tangible Personal Property:
We also welcome gifts of equipment, books, gems, artwork, etc. Gifts of this kind are often deductible to the extent of their full value, as long as the property may be used to further the tax exempt purposes of the College. If the use of the donated property is unrelated to the College's tax exempt purpose, such as a coin collection given for resale, the deduction is limited to your cost basis. If you donate an item that you created, such as a painting, the deduction is limited to the cost of producing the asset.
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Real Estate:
Giving Real Estate:
You may donate your personal residence, all or part of your vacation residence, commercial property, farm or other real estate either as an outright gift or as part of a life-income plan. Tax savings and other benefits will vary according to the method you choose, your personal circumstances and the value of the property.

Methods of Giving Real Estate:

Outright Gift of Real Estate:
The deduction for gifts of appreciated property you have held for more than one year is normally equal to the fair market value of the property. If you have held the property for less than one year, your deduction is adjusted. In general these gifts are deductible to the extent of 30 percent of your adjusted gross income. However, any amount not currently deductible because of such limitation may be carried forward and be eligible for a tax deduction over the following five years.

If you are considering a contribution of property which has decreased in value since acquisition, you can only claim a deduction for the property's fair market value. Therefore, you should first sell the property and then donate the proceeds, thereby establishing the loss for tax purposes (available to offset gains) while entitling you to the same deduction you would receive if you donated the property.

A Life Estate Gift:
This is a gift you make of your personal residence, vacation home, yacht or other property used as a residence (primary or otherwise) or farm (any land used by you for production of crops or sustenance of livestock) while retaining the right to live in or otherwise use the property. While you continue to be responsible for the upkeep, insurance, and taxes on the property, you are entitled to a charitable contribution deduction for the value of your gift. The amount deducted is dependent upon the property's fair market value and your age at the time of transfer. You may also wish to consider a gift of a fractional or partial interest in such property.

A bargain sale gift:
You may consider this type of gift when you deem the value of the property is greater than the amount you wish to give. The property is sold to the College at less than its fair market value. The difference is the amount of your charitable contribution deduction. If the sale/gift is of appreciated property, a portion of the potential gain will be subject to tax. Acceptability of bargain sale gifts from the College's point of view depends on the marketability of the property, the amount of the bargain and the availability of funds to make the purchase.

Unitrust option:
Highly appreciated real estate is an excellent choice for funding a charitable remainder unitrust. You can avoid the capital gains tax, receive an income tax deduction, and generate a new income flow once the property is sold and converted to income-producing investments.

Appraisal Requirements:
Charitable contribution deductions for gifts of property (other than cash or publicly traded securities) with a value in excess of $5,000 must be substantiated by a "qualified appraisal." These requirements are in addition to those generally required to document any deduction claimed for tax purposes, and must be observed in order to support the deduction of such property.
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Life Insurance:
Life insurance affords a practical means of making a gift to The King’s College. If you name the College as the owner and beneficiary of the policy, the policy's value is a charitable contribution in the year of transfer. If the policy is not fully paid up, you will be entitled to a charitable contribution deduction for each subsequent premium payment.

Naming the College as the primary or alternate beneficiary of a policy (but not the owner) will not provide a current deduction for either the value of the policy or the premiums paid. However, your estate will be permitted to deduct the amount of the proceeds payable to the College for estate tax purposes and you will be able to confer a significant benefit on the College at a relatively modest annual cost.
If you wish to ensure that the proceeds of life insurance be available for the support and maintenance of your surviving spouse before going to the College, a variety of trust arrangements can accomplish this.
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Wealth Replacement Option:
One of the most important and sophisticated roles of life insurance in planned giving is its potential use in replacing the value of an asset that has been given to The King’s College.

How it works: You, as donor, use the tax savings produced by the charitable deduction or the life income stream generated by the gift to purchase and pay the premiums on a life insurance policy whose proceeds should, ideally, be equivalent to the value of the property given to The King’s College. Such an arrangement can assure that the interests of family beneficiaries will not be adversely affected.
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