Ways of Giving : Tax Benefits

A gift to the Center for Conservation Biology qualifies for any applicable income, estate, or gift tax deduction.

A gift of cash qualifies for a deduction in the amount transferred.

If held longer than one year, a gift of publicly traded securities qualifies for a deduction of their fair market value on the date they are either mailed to or received by the Center. The fair market value of stocks and bonds is typically the average of the high and low trading prices on the gift date. The fair market value of mutual funds is typically their closing selling price on the gift date.

For gifts of real estate, privately held stock, or other "capital assets" valued at over $5,000 (if privately held stock, $10,000), an appraisal of the property's fair market value is required. It, along with I.R.S. Form 8283, must be completed in order to qualify for an income tax deduction.

Because a deduction for the fair market value is available for certain kinds of property, donors typically want to consider donating property that has appreciated in value. Property that has declined in value typically should be sold by the donor before the gift, so the donor can claim any tax benefits from a capital loss.

Tangible personal property, securities and real estate held less than one year, and certain other kinds of property qualify for a tax deduction equal only to the donor's "cost basis" (typically the amount he or she paid to acquire the property).

Donors making large gifts to the Center for Conservation Biology may have their deductions affected by certain limits.

Life income gifts typically qualify for a deduction that is a fraction of the amount donated. The deductible amount depends on a variety of factors, including the size of the retained income stream, the age(s) of the income recipients (or the term of the trust), and the date of the gift.

Deduction Carryforward and Deduction Limits
Certain limits exist regarding how quickly an income tax deduction can be used. These typically apply when a donor has made a large gift, or has made several gifts to the Center for Conservation Biology and/or other charities.

The deduction for a gift of cash to a public charity, such as the Center for Conservation Biology, may be utilized up to 50% of the donor's adjusted gross income in the year of the gift. This limit also applies for a gift in which the donor is required, or chooses, to deduct an asset's cost basis.

For a gift of an appreciated asset held longer than one year, the deduction may be used up to 30% of the donor's adjusted gross income.

Any excess deduction may be carried forward over an additional five-year period. Thus, if other factors permit, a person may make a gift today in excess of the deduction that can be used now, knowing that there are a number of years in which the deduction can be taken.