Cash
Direct cash gifts are the most common form
of giving and can be unrestricted or designated
for a specific project, program, or department.
Cash gifts may be made outright or used to
fund a life income vehicle; they are tax-deductible
to the full extent permitted by law.
Securities
Outright gifts of appreciated securities (stocks,
bonds, mutual fund shares) are tax deductible
at full fair-market value if the donor has
owned the asset for at least 12 months. To
avoid capital gains taxes, you must provide
the securities themselves, not the proceeds
of their sale.
Gifts of closely held stock
(usually stock in a family-owned business)
also carry benefits for the donor. The stock
must have been held for at least 12 months
for you to claim a charitable deduction at
full fair market value. If the deduction exceeds
$10,000, a qualified appraisal is required
for tax purposes.
For detailed guidelines on gifts
of securities, please call Advancement’s
gift accounting office at (800) 526-2023 #5
Real Estate
Gifts of residences, including vacation homes
and farms, allow the donor to take a tax deduction,
avoid capital gains taxes, retain lifetime
occupancy for herself or himself and/or another
person—and provide support for Smith.
To qualify for tax benefits, you must have
owned the property for at least 12 months
before giving it to Smith. 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. If the college cannot use the property,
it will be sold and the proceeds added to
endowment. The owner must obtain a qualified
appraisal for tax purposes.
Personal Property
Gifts of tangible personal property, such
as art, jewelry, antiques, rare books, gold
or silver, offer the donor an immediate tax
deduction; the amount depends on whether or
not the gift is related to the college’s
educational purpose.
Gifts related to Smith’s
educational purpose generate a tax deduction
for the full market value of the object as
determined by a qualified independent appraiser.
Other gifts-in-kind do not offer the donor
the same tax advantage, but do benefit Smith
through the proceeds from their sale.
Smith College Museum of Art
only accepts works of art that can be added
to their permanent collection. A donor considering
a gift of art should contact Suzannah Fabing,
the director of the Smith College Museum of
Art, at (413) 585-2760 or by e-mail at sfabing@email.smith.edu.
Matching Gifts
More than 1,000 corporations, foundations,
and other organizations will match their employees’
charitable contributions either dollar-for-dollar,
or at a ration of 2-to-1, 3-to-1, or even
4-to-1. The donor must obtain the form from
the employer and submit it for processing.
If you notify Smith that there is a matching
component to your gift, the college can follow
up once you have initiated the process.
Growing a Gift—Maximizing
a Match
Samantha Swift ’85 works for an organization
that matches charitable contributions up to
$2,000 each year on a 3-to-1 basis. Here are
two illustrations of ways she can increase
a total gift of $5,000 by using her employer’s
matching gift program.
