Support Salem State
Gifts of Other Assets
Gifts to Salem State come in many forms. After cash, checks and securities, the most common assets gifted to the college come in the form of real estate, life insurance policies and personal property.
Donors may also wish to consider gifts of closely held stock or tangible items of demonstrable value such as rare books, works of art and antiques: these gifts may enable you to make a significant gift to the college with outstanding tax benefits to you or your estate. The Salem State College Foundation also accepts intangible personal property such as copyrights, royalties and patents; gifts that will generate income to support a program of choice on a continuing basis.
Asset Types
Real Estate
The college accepts gifts of real estate including personal residences, second homes, farms, commercial or income property, and land that offer a wide variety of tax and other benefits. Gifts of real estate can provide an opportunity for charitable giving while reducing taxes and removing the liquidity hurdle.
Real estate, an illiquid asset, often represents a large portion of a donor's net worth and the taxes on the sale of real estate negate appreciation gains for property owners relying on real estate proceeds to provide income after retirement. Real estate owners face a capital gain tax that may be due upon the disposition of highly appreciated real estate assets, specifically investment real estate, which is not subject to the $500,000 exclusion from capital gain taxes.
Life Insurance
The gift of a life insurance policy to the Salem State College Foundation is attractive to donors because it ensures donors that the college will receive a death benefit larger than any gift they could make during life.
In order to receive a charitable deduction for a gift of life insurance, the donor must transfer ownership rights to the college and cannot borrow funds from the policy nor retain the right to change beneficiaries. A life insurance policy with cash value can be reduced to cash, allowing the donor to contribute the cash value in exchange for a charitable gift annuity or charitable remainder trust.
Personal Property
Items of personal property and assets that carry a value to the donor and can be expressed in a financial appraisal (exceeding $5,000) are accepted as gifts. Tangible personal property can include such items as boats, vehicles, antiques, works of art that are assets of an artistic or intellectual nature, collections, rare books, drawings, paintings, sculptures, written material, and so on. Gifts that are in themselves not directly related to the college's mission can be sold to provide valuable support for that mission. For property that has a financial value and will be sold by the college, it's important to consider not just the appraised value of the property, but also the likely sale value and the costs associated with the sale.
The charitable value and income tax deductibility of a gift of personal property varies greatly. To obtain an income tax charitable deduction at $5,000+, you may be required to obtain an independent qualified written appraisal, and #le a summary IRS Form 8283. Please contact the Salem State College Foundation office to discuss your charitable plans.