Turn Your Personal Assets Into Charitable Support
Your assets like valuable antiques, stamp and coin collections, works of art, cars, boats, and other personal property can make suitable charitable gifts today or after your lifetime. The financial benefits of the gift depend on whether we can use the property in a way that is related to our mission.
Related use property—e.g., a piece of artwork donated to an art museum—is deductible at the total fair market value. Any other property is deemed nonrelated use property, and the deduction would be limited to the lesser of fair market value or your tax basis in the property.
Suppose the federal income tax charitable deduction claimed for a gift of tangible personal property exceeds $5,000. In that case, you must obtain an appraisal from a qualified appraiser and submit a particular IRS form with the tax return on which the deduction is claimed.
Long-term capital gains on “collectibles” are subject to a top tax rate of 28%. Although the imposition of a higher long-term capital gains tax rate is a disadvantage to the donor, more capital gains tax may be avoided by donating the tangible personal property to a charitable organization, as opposed to a comparable appreciated asset subject to a 20% top rate on the long-term capital gain.
Ways to Use Property as a Donation
An outright gift. This allows you to benefit our organization today and receive a federal income tax charitable deduction when you itemize.
A gift in your will or living trust. You can leave a legacy at Our Organization by donating the property to us through your will or living trust.
A bargain sale. You can sell us your property for less than the item’s fair market value. For example, if you sell us an antique for $25,000 worth $50,000, you will receive a federal income tax charitable deduction of $25,000 plus the payment from us of $25,000.
A memorial or tribute gift. If you have a friend or family member whose life has been touched by the Foundation, consider making a gift to us in their name.
An endowed gift. Create an endowment or contribute to one already established to ensure that your support of the Foundation will last forever.
A charitable remainder trust. You may be able to contribute tangible personal property to a charitable remainder trust. If you or a family member is an income beneficiary, you will receive a federal income tax charitable deduction when the property is sold. An additional contribution of cash or appreciated securities is recommended to cover expenses until the tangible personal property is sold.
Next Steps
- Contact us for additional information on giving a gift of personal property.
- Seek the advice of your financial or legal advisor.
- If you include our organization in your plans, please use our legal name and federal tax ID.