For more information on any of the below gift opportunities, please contact Dr. Susan E. Barrett, Vice President of College Advancement at 610-526-6005 or email@example.com
Retirement Plan Assets
Leaving assets in your Individual Retirement Account, 410(k) or other pension plan to Harcum College in your will offers many tax advantages. If left to your heirs, the amount of your retirement assets would be subject to income and possibly estate taxes, which can significantly erode the funds. By naming Harcum the beneficiary, you are able to pass on the full value of the funds to the College tax-free.
A gift of life insurance can be beneficial to both the donor and Harcum College. You may either transfer to Harcum ownership of a paid-up policy you no longer need, or you may purchase a new policy, naming Harcum as the owner and beneficiary. Either gift provides you with a charitable income tax deduction equal to the current value of the life insurance policy.
Highly appreciated property, free of indebtedness, is often an ideal asset for many methods of charitable giving:
Outright Gift of Real Estate If a donor would like to give a residence or other form of real estate to Harcum, the property would be deeded to the College and subsequently sold. The donor receives an immediate income tax deduction for the appraised value of the property. Please note: he/she must agree to pay the appraisal and carrying cost until the property is sold.
Retained Life Tenancy In this case, ownership of the property is transferred to Harcum, but the donor retains the right to use the property for his/her lifetime. Upon the death of the donor, the College will take full possession of the real estate and sell it. Please note: The donor will be asked to bear the cost of the appraisal and upkeep of the property (i.e. real estate tax and maintenance) while he/she is residing in the residence.
A Trust Funded with Real Estate If a donor would like to deed property to a charitable remainder trust, with the understanding that the property will be sold and the proceeds used to fund the trust, income will be generated for the donor for his/her lifetime. As mentioned above, the donor would be asked to bear the costs of the appraisal and upkeep of the residence until the property is sold. At the death of the donor or beneficiary, the assets in the trust will pass to Harcum College.
In considering a gift of real estate, you will need to consult with your legal and financial advisors to ensure that donating your asset is a sound decision for you and your heirs. Harcum College must approve all gifts of real estate or property. Therefore, it is important to involve the College Advancement Office early in the decision-making process.
Tangible Personal Property
Many donors choose to give Harcum sculptures, paintings, book collections, equipment and other types of personal property. Donors should be aware that in most instances the charitable deduction from a gift of tangible personal property is based on cost, not the market value of the gift. The College Advancement Office will be happy to advise you of the most effective ways to use your tangible assets for charitable giving.
Closely Held Stock
Closely held stock, which is not traded publicly and is usually associated with family-owned businesses can also be donated to Harcum College. Provided you have held the stock for more than twelve (12) months, it generates an income tax charitable deduction equal to the fair market value of the stock on the date of transfer. Closely held stock enjoys the same preferential capital gains treatment as publicly traded securities. However, if the claimed value of the securities exceeds $10,000, the donor must obtain a written qualified appraisal. Since the issuing corporation is the most natural market for the stock, the stock is usually redeemed by the corporation, which provides a ready cash gift for Harcum.
Please note: Harcum College is an educational institution and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. We strongly encourage donors to seek counsel from their own legal and financial advisors. Please be aware that any information or documents shared by our staff cannot be used to avoid tax-related penalties.