A gift made with appreciated securities provides you with a charitable income tax deduction based on the securities’ fair market value. You must have owned the securities for more than one year. In addition, you avoid the capital gains tax that would have been due to the government had you sold the securities yourself. In addition to outright donations, appreciated securities are often donated to fund life income gifts. It is generally not advisable to donate securities that have decreased in value. It is more to your advantage to sell the securities to establish a tax-deductible loss and then contribute the proceeds to UMMS.
To view instructions on transferring securities to UMMS Foundation, click here.
A bargain sale refers to a sale of property (most often real estate) to a charity for a price that is less than the fair market value. The gift is represented by the difference between the bargain sale price and the fair market value of the property based on a “qualified” appraisal. The charity realizes the full value of the property when it sells the property.
In addition to gifts of publicly-traded appreciated stocks and bonds, it is possible to make gifts of appreciated shares of privately-held securities. A gift made with closely-held securities will provide you with the same charitable deduction and capital gains tax avoidance benefits as a gift of publicly-traded securities. UMMS can elect to sell the donated shares back to the corporation and use the proceeds for the purpose you designate. To learn more, please contact the UMMS Foundation at 410.328.5770.
In order to ensure that funds are available to provide for the long-term needs of UMMS and its patients, donors may choose to establish an endowment fund, the principal of which is held in perpetuity while the earnings are used to support a need within the Medical System. To learn more about establishing an endowment or making a gift to an existing endowment fund, please contact the UMMS Foundation at 410.328.5770.
You may wish to give the UMMS Foundation items of tangible personal property such as artwork, rare books and manuscripts, museum-quality artifacts or antiques. Special rules apply to direct contributions of tangible personal property, including whether the item is related to UMMS’ tax-exempt purpose (e.g. a painting to improve waiting room atmosphere) or usable in normal operations, whether you have owned it for at least 12 months, and whether you are able to provide an objective “qualified” appraisal of its current fair market value. Gifts of tangible personal property avoid capital gains taxes on property, which has increased in value since its purchase, providing an important tax benefit for the contributor while aiding UMMS.
Naming opportunities recognize individuals, businesses, or groups for significant (major and leadership) gifts. These naming opportunities serve as an essential expression of gratitude to our donors and also help to create public awareness of the power of philanthropy. If you are interested in learning more about our naming opportunities, please complete and submit this form.
Your personal home and other real property you own (vacation home or farm) are among your most valuable assets. Often, these properties have appreciated substantially in value over time. Real property can be donated outright or as remainder interest (see Retained Life Estate below), should you wish to stay in your home but would like UMMS to benefit eventually from the value of your property.
An outright gift of real estate could provide you a double tax benefit. Your income tax deduction is based on the full fair market value of the property and you can also avoid capital gains taxes on the appreciated portion of the value.
You may wish to have property come to UMMS while you continue to have use of the property (such as a residence, vacation home or farm) during your lifetime. This type of gift is referred to as a gift with a retained life estate. You can transfer ownership to UMMS and retain the use of the property. This would allow you and your spouse to enjoy the use of your property and still receive a sizeable charitable deduction on your income taxes. Later on, the value of the property you give is sheltered from high estate taxes and probate costs. Once made, this gift is irrevocable, but allows you to make a gift now while enjoying the use of your property and receiving substantial tax benefits.