Outright Gifts
Outright gifts are the most popular form of contribution to UNH. The donor can choose to designate the gift for specific programs or purposes, or leave it undesignated. An outright gift can be monetary. It can also be a gift of a special asset, such as real estate, art or collectibles, or a qualified retirement plan. A gift of highly appreciated assets, such as securities or real estate, is generally not subject to capital gains tax. The donor is also entitled to an income tax deduction equal to the value of the gift.
A gift of securities increases the monetary value of the gift
Example:
Mr. Smith wants to make a substantial gift to UNH. He owns securities that he bought 20 years ago for $20,000. They are now worth $100,000. If he transfers those securities directly to the UNH Foundation, he will receive a charitable deduction for the full fair market value of the stock. The proceeds from the sale of the securities will be directed to the program of his choice, and he will receive a charitable tax deduction of $100,000, avoiding tax on the capital gain portion. If, however, Mr. Smith were to sell the securities himself and donate the proceeds to the University, the $80,000 in appreciation would be taxed at the current capital gains rate of 15 percent, or $12,000. Mr. Smith would then have only $88,000 to contribute.
