The value of an outright gift immediately benefits the University. Though a cash gift, a pledge to make a gift may not be deducted until the year in which actual payment is made. Multi-year pledges allow you to spread your gift payments out over a period of time. These are trusts into which two or more donors irrevocably transfer property, contributing the remainder interest in the property to the Indiana University Foundation. Each donor retains an interest in the annual proceeds based upon the proportionate share of assets which he or she contributed to the total fund.
Real property includes all gifts of real estate.
In considering whether to accept the gift, the Foundation weighs its potential value to the University and determines whether a management plan can be implemented to maximize that potential. Many of the tax advantages which apply to gifts of appreciated securities also apply to gifts of appreciated real property. Tangible personal property include works of art, furniture, equipment, collections, and personal mementos. For tax purposes, the date of the gift is the date of physical delivery, and the value is the item's fair market value on that date as determined by a competent appraiser. You are entitled to a federal income tax deduction for the fair market value of the remainder interest in the property at the time it is transferred.