Getting Started
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Creative Ways to Give This Year
Give cash. In exchange for a gift of cash, you receive an income tax charitable deduction for the full value of the gift up to 50 percent of your adjusted gross income (AGI) when you itemize on your federal income taxes.
Donate stocks, mutual funds or real estate. Even if these types of assets have lost value, for tax purposes they are still appreciated if their current value is more than what you originally paid for them. If you've owned them for more than one year, you may deduct the full fair market value of the property up to 30 percent of your AGI. You also eliminate paying capital gains tax on the appreciation, thus reducing the out-of-pocket cost of your gift.
Contribute personal property. Perhaps you have tangible items, such as artwork and antique furniture or other collectibles, that you would like to give to Muhlenberg College. If we can use these items in a manner related to our tax-exempt purpose, you can deduct their fair market value up to 30 percent of your AGI. If use of the property is considered unrelated to our mission—which we'll help you determine—the deduction is generally based on its cost basis, deductible up to 50 percent of your AGI.
| Discover more out-of-the-ordinary charitable options in our free guide. |
How to Get Your Deduction
Did you give cash? You must have a receipt from us prior to filing your return that states the date of the gift, the amount, and whether you received any goods or services in exchange for your donation. You don't need to send this to the IRS, but you do need to have it on hand when you send in your income tax return. If you write a check for less than $250, a copy of the check will suffice as a record of the gift. You should always obtain a receipt for a gift by check of $250 or more.
Did you give property? A gift of property requires a receipt, and if it is worth $250 or more, additional items are required on the receipt. For gifts of property valued at more than $500, you'll also need to include IRS Form 8283 with your tax return. And if you want to deduct more than $5,000, you'll need to obtain a qualified appraisal unless you have donated marketable securities.
If you have any questions about supporting Muhlenberg College at the end of this year, please feel free to contact Robert A. Merritt at 484-664-3224 or rmerritt@muhlenberg.edu.
Copyright © The Stelter Company, All rights reserved.
The information on this website is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact your results.
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