Gifts of Cash
Gifts of cash can be deducted against a larger portion of your taxable income than can gifts of appreciated assets. Cash is the simplest donation and provides us immediate benefits. Your gift can be made outright or to fund a life income arrangement.
The IRS allows you to claim charitable deductions for gifts of cash up to 50 percent of your adjusted gross income (AGI) (AGI is the figure at the bottom of the first page of Form 1040.) Alternately, if you use appreciated property instead of cash to make your gifts, you can claim deductions up to only 30 percent of AGI. Although excess deductions may be claimed over the five years after the gift is made, if you are looking for substantial immediate tax deductions you may be better served giving cash instead of property:
For charitable gifts of cash, the IRS allows you to claim up to 50 percent of your adjusted gross income ("AGI"). However, for charitable gifts of appreciated assets, you may deduct up to only 30 percent of AGI in any one year. In either case, if you cannot use all of the deduction in any one year, In either case then you may carry over any remainder for the next five years. For example:
|
Cash |
Appreciated Assets |
Donor's AGI |
$300,000 |
$300,000 |
Amount of gift |
$200,000 |
$200,000 |
Total charitable deduction |
$200,000 |
$200,000 |
Deductible against % of AGI |
50% |
30% |
Deduction in first year |
$150,000 |
$90,000 |
Net taxable income, first year |
$150,000 |
$210,000 |
Net tax in first year @35% rate |
$52,500 |
$73,500 |
Carryover deduction |
$50,000 |
$110,000 |
|
||
Gift
of:PLEASE NOTE: Gifts of appreciated securities and other property must have been held by the donor for one year in order to receive a full fair market value tax deduction.
For More Information
If you are considering a gift of cash, e-mail us, complete the personal illustration form, or call us at 800-338-3294.
- You receive an immediate income tax deduction for a portion of your contribution to the trust.
- You pay no capital gains tax on appreciated assets you donate.
- You or your designated beneficiaries receive income for life or a term of years.
- You can make additional gifts to the trust as your circumstances allow, and qualify for additional tax deductions.
- You make a significant gift that benefits you now and Columbia later.
Office of Gift Planning
gift.planning@columbia.edu
475 Riverside Drive
New York, NY 10015
(800) 338-3294
