Tax Incentives
Gifts to Doane College qualify for any applicable deductions on income, gift or estate tax returns. We ask that you consult your accountant for further details.
Cash
These gifts qualify for a deduction equal to the amount transferred, up to 50% of your adjusted gross income.
Property Held for One Year or Longer
- Publicly traded securities qualify for a deduction based on the average of the high and low trading prices for the date the stocks were received by Doane College. For mutual fund shares, the value is usually based on the closing selling price for the date of the gift.
- Using appreciated assets to make an unconditional gift allows you to totally avoid capital gains tax on the asset transferred. If the property has actually declined in value since purchase, you should sell the property so that you may use the capital loss on your own income tax returns.
- Gifts of real estate, privately held securities, or other capital assets having a value of $5,000 or more (the limit is $10,000 for privately held stock) require an appraisal of the fair market value of the asset and an IRS form 8283. These requirements must be met if you wish to qualify for a charitable deduction.
Property Held for Less Than One Year
This includes all types of securities, tangible personal property, real estate, and other specialized gifts will receive an income tax deduction equal only to your cost basis. Typically, the cost basis is what you actually paid for the asset.
Gifts to Doane Athletic Club (DAC)
- Under IRS rules, gifts in support of athletics may be deductible for only 80% of the value of the gift, unless the donor renounces any ticket/parking privileges before the completion of the gift.
Deductions for Life Income Gifts
- Donors will receive a deduction based on the remainder value that will come to Doane College or other charities at the conclusion of the life interest of the beneficiaries.
- The calculation of the deduction is based on the ages of the beneficiaries, the rate of income to be paid, the fair market value of the gift and the federal discount rate in effect for the month the gift is made or either two of the previous months.
Carry Forward and Deduction Limits on Charitable Gifts
- Taxpayers are limited as to the amount of charitable deduction that can be used each tax year.
- The charitable income tax deduction for gifts of cash to Doane College or other public charities may be used to offset up to 50% of your adjusted gross income for the year of the gift. This limit also applies to those instances when you either choose or deduct the cost basis of an asset.
- For gifts of appreciated property held for more than one year, the deduction can be used to offset up to 30% of your adjusted gross income for the year.
- Any excess deduction that cannot be utilized in the year in which the gift is made, can be carried forward for up to five additional tax years. You must use the deduction up as quickly as possible and cannot "pick and choose" which years to use it.