Most gifts to the Indiana University School of Medicine involve outright transfers of property. They range from cash gifts to complicated real estate transfers. Regardless of size or type, all have tax advantages, with the added appeal that the School of Medicine can put an outright gift to work immediately.
To make a contribution:
Please make checks or money orders payable to the Indiana University Foundation, the designated fundraising agency for the School of Medicine.
Mail contributions to:
Indiana University School of Medicine
C/O Indiana University Foundation
PO Box 7072
Indianapolis, IN 46207-7072
Gifts of Appreciated Property
Charitable gifts of appreciated property – whether real estate or capital gain securities – can provide even greater tax benefits than a cash gift of equal value. You may take a charitable deduction for the full fair-market value of the property while avoiding capital gains taxes. The IRS currently allows you to deduct the full fair-market value of the property up to 30 percent of your adjusted gross income for the year. Any amount over that ceiling can be carried forward for future deduction, for up to five years, subject to the same percentage limitations. A gift of appreciated property is considered effective on the day the transfer is completed. Please contact the Office of Gift Development for specific instructions.
Gifts of Tangible Personal Property
A gift of tangible personal property – such as furniture, equipment, antiques and books – is deductible for its full fair-market value, up to 30 percent of your adjusted gross income, if it meets two conditions: 1) it must be documented by a legitimate appraisal, and 2) it must satisfy the “related use” standard.
“Related use” means that the School of Medicine is able to use the gift in a way that is related to or furthers its mission. For example, books donated to the library meet the standard, as do office furniture, computers or business machines. Property that does not satisfy the related use standard may still be deducted, but only for your cost basis in the property, subject to a limit of 50 percent of your adjusted gross income. The five-year carry-over rule for the deduction applies in both cases. Please note, however, that in order to protect its tax-exempt status, the School of Medicine may limit gifts that do not meet the related use rule.
A gift of tangible personal property is considered to be made on the date when ownership or legal title is transferred. To make the formal transfer, you may write up a simple letter that identifies the property and includes a signed statement of your intent to transfer it to the Indiana University Foundation.
Perhaps you have property that has appreciated in value, but you only want to donate part of that value to support the School of Medicine. In that case, you may make a bargain sale of the property to the IU Foundation for less than its fair-market value (usually your cost basis). You thereby get cash-in-hand to recoup your original investment while getting a charitable deduction for the donated difference. You should note, however, that some of the cash recovered will be treated as a capital gain.
For record-keeping purposes, the date of the sale is considered to be the date of the gift. Bargain sales require careful planning. Please consult your tax adviser, legal counsel or other financial planner and contact the Office of Gift Development for further information.
Gifts of Closely Held Stock
If you are a business owner and contribute closely held stock, you may take a charitable deduction for the stock’s appraised fair-market value. In addition to increasing your cash flow, you also avoid the potential capital gains tax on the appreciated value of the stock. Subsequent to the gift, the corporation can purchase the stock from the IU Foundation for cash. As long as the Foundation is not obligated to sell the stock to the corporation, you may enjoy significant tax savings.
For record-keeping purposes, the date of a gift of closely held stock is considered to be the date the stock is transferred.