The College encourages donors to consider ways to support Colby that are best suited to their charitable goals and financial circumstances. Pledges allow donors to make generous contributions over a period of several years, and they may provide donors with significant tax advantages. Donors may schedule payments in ways that meet their needs, provided all payments are made within a five-year period.
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 Development and Alumni Relations
4335 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 Colby Fund, Colby Fund for Parents, or other named fund at Colby.
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.
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 Gift Planning Office at 1-800-809-0103 or firstname.lastname@example.org
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 email@example.com
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 firstname.lastname@example.org
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. 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.
A gift of your IRA through your estate plan in the future is an extremely tax-efficient way of making a charitable gift.
Leaving IRA assets to charity is extremely tax efficient because, when inherited, heirs pay income and often estate tax on these accounts. Charities, however, do not pay income taxes, and the assets pass to charity free of any estate tax as well. This can translate into tax savings of up to 85 percent of the value of the account, depending on the size of the total estate and the heir's tax bracket. To make Colby a designated beneficiary of an IRA or other retirement plan, contact your plan administrator for a “designation of beneficiary” form, and let us know that you have done so.
Estate gifts of IRA assets qualify you for membership in the Willows Society. Please let us know your plans so we can provide this important recognition of your inclusion of Colby in your estate plans. Call Sue Cook '75, P'11, in the Office of Gift Planning, 1-800-809-0103, or complete the online Bequest Documentation Form.