Gift Policies and Tips
The Foundation’s gift policies help meet your needs, and ensure that you and the Foundation comply with any relevant tax laws.
Most contributions are easy to understand, and easy to make
Most contributions are simple in nature, and do not require substantial planning or tax advice. These include:
- Gifts of cash
- Securities (stocks or bonds) traded on a public exchange
- Gift annuities
- Life insurance
- In-kind goods and services
If you plan to make a gift of securities, remember that the securities must be transferred directly to the Foundation in order to preserve your tax deduction. We can provide you or your broker with easy transfer instructions.
Easily contribute to a Foundation Fund
You can easily contribute to the General Fund, to a specific Foundation fund, or you can create your own fund.
Gifts to the general fund benefit a variety of Foundation activities, while gifts to a specific fund (known as a “restricted” fund) support a specific activity or purpose, such as scholarships for students living in a particular community or scholarships for students pursuing a particular degree program. The Foundation holds more than 150 different Endowment and Special Term Funds.
But you might want to create your own permanent Endowment Fund or Special Term Fund. It’s easy to do. Your fund can strengthen a particular academic program, honor a loved one, or support a particular group of students.
Certain types of contributions might require planning
Some contributions, particularly contributions of property, may have significant tax or liability implications, and may require independent appraisals. We encourage you to talk with your financial advisor and attorney about complex contributions, and we are available to help you and your advisor make contributions that meet your needs and support Genesee Community College.
Contributions that might require planning include:
- Closely-held securities (securities held by one individual or a small group of individuals, and not publicly traded)
- Real estate
- Personal property, such as art work and collectibles
- Mineral rights
- Bargain sales (sale of property to a charity for less than its value)
- Intellectual property, such as patents and copyrights
Your Contribution and Taxes
The Genesee Community College Foundation is a not-for-profit charitable organization. Contributions to the Foundation are deductible under both the federal and state tax laws.
Most contributions are fully deductible, but in limited instances, you’ll want to do some advance planning:
- If you are subject to alternative minimum tax, you might not be able to fully deduct your charitable contributions.
- The federal tax code puts limits on how much you can contribute and deduct each year – generally no more than 60% of your adjusted gross income in cash gifts, and 30% of your adjusted gross income in gifts of securities. However, the tax code permits a “carry over” of some “unused” deductions of up to five years.
- Many proposed gifts of real estate or personal property require one or more independent appraisals, which are used to substantiate the value of a tax deduction.
- Gifts of marketable securities are usually easy to valuate for tax purposes. Assuming the shares are held in electronic form, the tax deduction will be the value of the securities at the time of transfer. If securities are transferred in paper form (yes, many investors still hold stock certificates), the Foundation valuates the gift at the midpoint of the trading range on the day the certificates are received, as reported by The Wall Street Journal.
If you are planning a large or complex gift, we encourage you to consult your financial advisor and attorney, who are important resources to you. We are happy to work with you and your advisers to create a contribution that brings you joy and maximizes your tax benefits.