Witness the Difference Your Gift Can Make

Today, there are many creative avenues by which you or any member of your family can support the important work of High Point University. You could make a simple bequest in your will or trust. There are also more complex giving opportunities such as charitable remainder trusts. The most popular option, however, and perhaps the easiest, is an outright gift.

An outright gift is a donation that is transferred directly from you to High Point University.

It is a crisp, efficient process that benefits all parties. We receive an immediate gift; you receive the satisfaction of seeing your gift at work, and you can take an immediate income tax deduction.

The simplest and most common form of outright gift is cash, although there are other excellent choices. Your personal situation should determine the giving strategy that is best for you. Let’s look at some of the more popular outright gifts and their benefits.

Gifts of Cash
As mentioned, an outright gift of cash is the simplest method of giving. You can simply write a check or charge your credit card. For tax purposes, the gift is considered complete on the date it is mailed or authorized (if charged). Cash gifts can be taken as an itemized deduction for the amount up to 50 percent of your adjusted gross income. If your gift exceeds that limit, you can carry forward the unused portion of the deduction for up to five succeeding tax years.

Gifts of IRA Assets
If you are 70½ or older and own an IRA, consider how you can take advantage of the Pension Protection Act of 2006 and make tax-free outright gifts in 2007. Qualified donors can directly transfer up to $100,000 from their IRAs to public charities (excluding donor advised funds and supporting organizations) on or before Dec. 31, 2007. You will not have to include the amount as taxable income, nor can you take a charitable deduction.

Gifts of Securities
Many people own publicly traded securities with long-term (held longer than one year) appreciation. Gifts of these assets may provide the greatest tax benefit of all. You will receive a charitable deduction equal to the average of the stock’s high and low prices on the day the gift is considered completed, and you avoid the tax on the capital gain.

Gifts of Real Estate
Almost any type of real property—a vacation home, personal residence or farm—can be used to make an outright gift. In most cases, if you have owned the property for more than one year, you can donate it to a philanthropic organization, like High Point University, take a charitable income tax deduction for the property’s fair market value (net of debt) and avoid tax on the capital gain.

Gifts of Tangible Property
Tangible personal property includes items such as jewelry, rare books, fine art and antiques. Depending on the type of property you give and the type of organization to which you give it, your gift may be used as is or sold and the proceeds used as needed.

Gifts of tangible property generate a charitable tax deduction, but the size of that deduction depends in part on your cost basis, the length of time you owned it, and whether we use it as part of our mission or sell it.

The Gift of Giving
A number of other items also make wonderful outright gifts. And remember, it is always wise to work with your advisors and our staff when making a charitable gift. When all is said and done, most people would agree that the true value of any gift is summed up in the words of Pablo Casals: “The capacity to care is what gives life its deepest meaning and significance.”

Please call Dr. Donald A. Scarborough at 336-841-9214, or e-mail us at dscarbor@highpoint.edu, for more information.