There are many different reasons why friends, alumni, and supporters of Sierra College make charitable contributions to the Sierra College Foundation. Some give because of ideological commitment, some because of a desire to support the arts or sciences. Still, others give out of compassion for the needs of our students. The community we serve relies heavily on our classes and opportunities. For example:
Gifts to the Sierra College Foundation provide support to the programs, services and students of Sierra College. Your gifts are tax-deductible to the extent allowed by law.
* The Sierra College Foundation qualifies as a non-profit, charitable organization under IRS Sec. 501 (c) (3) public charity status for federal income, estate and gift tax purposes.
Cash is the most direct way to make a gift for achieving the goals proposed for the Sierra College Foundation. Funds so received for endowment will be invested according to policies approved by the Sierra College Foundation Board of Directors.
These investments make excellent gifts for many donors to consider. When a person owns securities that have a long-term gain and gives them to the Foundation, the donor may be able to take the full fair market value of the securities as a charitable deduction on his or her income tax returns and also avoid all capital gains taxes. The quickest and easiest way to transfer securities to the Foundation is for the donor to instruct his or her broker to transfer the securities from the donor’s account to one registered to the Foundation at the same brokerage house. If the Foundation has no account with the brokerage house, it is a simple matter to set one up, and Foundation officials can facilitate this. If the donor chooses to deliver stock certificates, they should be sent unendorsed. To transfer the securities, the donor should execute a stock power naming “Sierra College Foundation” as the new owner. If mailed, the unendorsed certificates and the stock power should be sent in separate envelopes. Transferring securities between brokerage houses or through the transfer agent are the least desirable methods as they may delay the transfer by as much as two weeks and make it difficult for the donor to control the date of the gift.
As with marketable securities, a gift of mutual fund shares, if held long term and have experienced appreciation, can enjoy the double advantage of a charitable deduction and capital gains avoidance. If the shares are kept in “street name” at a brokerage house, the transfer procedure is similar to that for marketable securities. If the shares are held at the mutual fund company, follow the company’s transfer procedures.
This includes corporations, partnerships and forms of business organization. The tax deduction is based on the appraised, fair market value. Common partnership gifts include those involving real estate, oil and gas properties or equipment leases. Under special circumstances, a partnership interest may also be used to fund a charitable lead trust. Another option is a family limited partnership, which is used to arrange for the orderly transfer of stock to the next generation and to receive substantial estate and gift tax savings. The inclusion of the Foundation as one of the limited partners results in favorable tax treatment for the donor and the successors in the partnership.
Real estate may be given outright or with the donor retaining a life estate contract (See “Gifts That Pay Income” below.) The types of property that might be given include residential, rental, business, or farm real estate. Both fractional and total interests will be accepted. The tax deduction is based on the appraised, fair market value.
Gifts of tangible personal property related to the mission of the Foundation are welcomed. At its option, the Foundation may retain such items in its permanent collections. The donor may take an income tax deduction for the appraised fair market value of the objects.
There are many types of life insurance gifts. The most common is assignment of an existing policy that is currently in force and paid up. The donor names the Foundation owner and beneficiary. The benefits to the donor are in both gift and estate tax considerations. In a gift of a policy that is not paid up, later premium payments are also deductible for tax purposes. Federal tax regulations indicate that the gift value of an insurance policy is the cash value of the policy at the time of transfer of ownership. Life insurance arrangements might take one of the following forms: