Cash gifts are the most common contributions made to Tulane. A gift of cash is not subject to taxation and is fully deductible on an annual basis up to 50% of your adjusted gross income (AGI). If the cash gift is large enough to exceed 50% of your AGI in the year of the gift, the remaining amount of the gift may be carried over and used as a deduction for up to five years. The gift amount is removed from your estate.
Gifts of appreciated stocks or bonds have the same positive benefits as cash, but may be more beneficial to you, per Internal Revenue Service standards.
Gifts of marketable securities that have been held longer than one year allow you to make a charitable deduction equal to the full fair market value of the securities. These gifts allow you to avoid taxation and can be a major benefit to you if you have held securities for several years and they have grown in value.
In addition, by making a gift of securities and letting Tulane sell them, you avoid paying any taxes on capital gains on the appreciation in the value of the securities. This can be a major benefit to you if you have held securities over a number of years and if they have grown in value.
Real estate of many types (including undeveloped land, farms, homes, and commercial buildings) can be contributed. Potential gifts of real estate are evaluated based on their ability to be up kept and various other risks associated with the property. Gifts of real estate offer the same deductions as gifts of securities, carry no gift taxes, and may reduce your overall estate taxes. You avoid capital gains taxes on the appreciation you have in the property.
Potential gifts of real estate are evaluated by the on a case-by-case basis before acceptance. Tulane must consider insurance, environmental, maintenance, property tax liability, and other potential risk factors, including special tax provisions which apply to certain types of real estate.
Gifts of related-use items allow the donor an income tax charitable deduction of the appraised value of the gift on the date of the gift (up to 30% of the donor's adjusted gross income with the five-year carry-over provision). (e.g. equipment to be used in a teaching lab or lighting for a performing arts theatre)
Note: Historically, rules pertaining to the charitable deduction for works of art have changed from year to year. Please check the current year's deduction before making any decisions. When the donor is the creator of a work of art, the donor's tax deduction is limited to the cost of creating that item.
Deferred gifts are often called "planned gifts" because they are integrally connected to financial and/or estate plans. They range in size from smaller bequests to multi-million dollar trusts. They are called deferred gifts because even though they are given today, the benefits by Tulane will not be realized until sometime in the future. There are a variety planned giving vehicles to consider. Tulane's Office of Planned Gifts is happy to work with you and your financial advisor to determine which vehicle is most appropriate for you in your life circumstance.
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