A pro rata portion of any capital gains tax is avoided on the transaction. Charitable Lead Trust Assets can be transferred to an irrevocable trust, which then makes payments to the University for a stated term. Trust assets can be returned to you at the end of the trust term or you can designate other individuals, such as younger family members, to receive the trust assets. This reduces or even eliminates the gift or estate tax imposed when passing property on to other family members. Cash You may make a gift of cash, which is deductible up to 50 percent of your adjusted gross income, if you itemize deductions.
Many people find it attractive to make a gift of stock.
If you transfer stock that has been held for more than a year and has increased in value, the University can sell the stock and you avoid all capital gains tax. If your stock has been held for more than a year and has decreased in value, it may be more advantageous for you to sell the stock and make a gift of cash to the University. If you hold the stock certificate in your name, you can endorse and date the back of the certificate, assigning it to the University. Your signature must be guaranteed by a broker or appropriate officer of a bank. If mailed, the certificates and the stock power should be sent separately.