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Current law allows you to deduct the full amount of your cash gift (or the full fair market value of securities) in the year the gift is made up to an amount equal to 50 percent of your adjusted gross income. Any portion of the deduction in excess of that 50 percent limitation may be carried forward for up to an additional five years. As a result, your out-of-pocket cost of a cash gift will almost certainly be lower than the benefit received by Colby.
Please do not send cash through the mail. Checks may be sent to:
Office of College Relations
4320 Mayflower Hill
Waterville, ME 04901-8843
Please indicate whether your check is a payment on an existing pledge or a new, outright gift you want us to credit to the Alumni Fund, Parents Fund, or other named fund at Colby.
Credit Card Payments
Gifts, pledges, and payments may be made by mail or phone, at 1-800-311-3678, with VISA, Mastercard, or American Express. Alumni Fund and Parents Fund gifts may be made over the Internet on our secure server.
Closely Held Stock
For a business owner, closely held stock may represent an outstanding gift opportunity. As with publicly traded securities, a gift of closely held stock entitles you to a charitable deduction equal to the full fair market value of the contributed shares (provided you have held the shares for more than one year). You avoid capital gains tax on any appreciation of those shares. In addition, the tax savings generated by the gift result in an increase in spendable income without the business having to declare a dividend. (Depending on the stock value, you may need to obtain an appraisal of the stock to claim your deduction.)
If you would like to explore a gift of closely held stock, please contact Colby's Planned Giving Office at 207-859-4370 or email@example.com.
Gifts of art, antiques, manuscripts, and other tangible personal property may be given or willed to Colby. For most gifts of personal property, the tax deduction depends on the appraised value of the gift. Donors are generally responsible for obtaining an appraisal for gifts valued at more than $5,000. If you would like to explore a gift of personal property, please contact Colby's Office of Gift Planning at 207-859-4370 or firstname.lastname@example.org to discuss the appropriateness of the proposed gift and method of transfer.
Gifts of art intended for the Colby College Museum of Art will be reviewed by the Museum's Acquisitions Committee. Other gifts of personal property are also subject to review by appropriate College offices. Colby's willingness to accept such gifts is determined, in part, by the gifts' usefulness to the College's mission.
A gift of real estate may be a residence, a farm, vacation property, or even raw land. Gifts of real estate that have appreciated in value provide the same tax advantage as gifts of appreciated securities—you can claim a charitable deduction and avoid the capital gains tax liability of the appreciation. Such gifts also may provide the additional advantage of converting a non-income producing asset into a lifelong source of income.
As with gifts of closely held stock, you must obtain an appraisal of your property for gifts in excess of $5,000; in many cases a preliminary environmental survey will be required. If you are contemplating a gift of real estate, please contact Colby's Office of Gift Planning early in the process at 207-859-4370 or email@example.com.
If you have owned a stock for more than 12 months and it has appreciated in value during that time, you would incur a capital gains tax by selling it. However, if you give that stock to Colby as a gift, you avoid the capital gains tax and also can claim an income tax deduction for the full fair market value of the gift up to an amount equal to 30 percent of your adjusted gross income. Any unused deduction may be carried forward for up to five years.
Contributing appreciated securities you have held for less than 12 months is less advantageous from a tax standpoint as your deduction is limited to your cost basis in the securities. You may not claim any of the appreciation as a charitable deduction.
If a stock has lost value since you obtained it, there is generally no advantage in making a gift of it because you may not claim the capital loss for the decrease in value at the time you make your gift. Rather, you should sell the stock, claim the capital loss, and then contribute the cash proceeds, which will entitle you to an income tax charitable deduction.
For more information about transferring securities to Colby, call Colby's director of administrative financial services:
Scott Smith '88
Other assets such as life insurance, stock options, and mutual funds, may be given to Colby in support of the campaign. Many of these other assets require special procedures to transfer and value them, however. For more information on the procedures and tax consequences, please contact Colby's Office of Gift Planning at 1-800-809-0103.
Gifts of IRA Assets
Although IRAs remain a tax advantageous asset to bequest to Colby, the Pension Protection Act of 2006 allows certain donors to make charitable gifts directly from their IRA during their lifetime. Click here for further information.