Options for Funding Your Planned Gift to Reed
Pick a funding strategy that is good for you.
Gifts of Cash
You may use cash to fund a life-income vehicle that ultimately benefits Reed. Cash gifts are tax deductible to the full extent permitted by law.
Gifts of Real Estate
A gift of real estate allows you to take a tax deduction, avoid capital gains tax, and provide support for Reed. To qualify for tax benefits, you must own the property for at least 12 months before giving it to Reed. The gift may be an entire piece of property or an undivided fractional interest in it. Each proposed gift of real estate is evaluated on a case-by-case basis. The owner must obtain a qualified appraisal for tax purposes.
Gifts of Real Estate with Retained Real Estate
You may make a gift of real estate to Reed and still retain lifetime occupancy for yourself and/or another person. Reed does not take possession of the residence until after the lifetimes of the tenants you have named. However, you are eligible to receive an immediate income tax charitable deduction because the gift cannot be revoked. The amount of the deduction depends on the value of the property and your age (and the age of any other person given life use).
Gifts of Securities
Outright gifts of appreciated securities (stocks, bonds, mutual fund shares) are a common way to give to Reed. They are tax deductible at full fair-market value if you have owned the securities for at least 12 months. To avoid capital gains taxes, you must provide the securities themselves, not the proceeds from their sale.
Gifts of Partnership Interests
You may also make a gift of a partnership interest in either a publicly traded or non-publicly traded entity. However, this type of gift requires the approval of Reed's treasurer.
Gifts of Personal Property
Gifts of tangible personal property, such as art, jewelry, antiques, rare books, gold, or silver offer you an immediate tax deduction; the amount depends on whether or not the gift is related to the college's educational purpose. Gifts related to Reed's educational purpose generate a tax deduction for the full fair-market value of the object as determined by a qualified independent appraiser. Other in-kind gifts do not offer you the same tax advantage, but may benefit Reed in other ways.
Gifts of Closely Held Stock
Closely held stock (usually stock in a family-owned business) may also be given to Reed. A gift to Reed of closely held stock, held by you for at least 12 months, entitles you to a charitable deduction at full fair-market value. If the deduction exceeds $10,000, a qualified appraisal is required for tax purposes.
This guide is not intended to provide specific advice about your estate plan or to recommend a specific course of action. We suggest you consult your professional advisers before taking any action, then contact Reed's planned giving office to learn more about these giving strategies.