For most persons, the easiest and most convenient gift to arrange is an outright gift to Hillsdale College.

Outright gifts of present interests in property (cash, securities, real estate, etc.) are advantageous for tax purposes if you have high current income and/or substantial assets other than the property you intend to give.  You receive an immediate charitable contribution deduction for the full value of the property as allowed by law and generally avoid capital gains taxation on appreciation of the asset.  You also have the satisfaction of seeing the good work that your gift will accomplish.

Cash Gifts

Simplicity and ease of delivery make cash the most common type of charitable gift.  The gift is considered made on the date delivered or mailed (by credit card when charged, even though paid later).  Generally such gifts are deductible to the extent of the 50 percent of your adjusted gross income (income for tax purposes before itemized deductions and personal exemptions); any excess can be deducted over the next five years subject to the same 50 percent limitation.

Property Gifts

The deduction for gifts of appreciated property you have held for more than one year is normally equal to the fair market value of the property donated.  If you have held the property for less than one year, your deduction is limited to your cost basis.  These gifts are generally deductible to the extent of 30 percent of your adjusted gross income.  Any amount not currently deductible because of such limitation, however, may be carried forward and deducted over the following five years. 

Conversely, if you are considering a contribution of property which has decreased in value since acquisition, you can only claim a deduction for the property's fair market value.  Thus, you should first sell the property and then donate the proceeds, thereby establishing the loss for tax purposes (available to offset gains) while entitling you to the same deduction you would receive if you donated the property.

Appraisal Requirements

These rules, which affect all significant gifts of property, except publicly traded securities, are discussed in the real estate section.

Gifts of Securities

Securities may be given either by transfer of the certificate of ownership or through account transfer arranged by your broker.  In either case, you avoid the tax on any potential gain and receive a deduction for the full fair market value of securities.

Gifts of Tangible Personal Property

Gifts of equipment, books, gems, artwork, etc., are deductible (within percentage limitations discussed above) to the extent of full value, so long as the property may be used in furtherance of the exempt purpose (ie., education) of the College.  This, if the use of the donated property is unrelated to the College's exempt purpose, such as a coin collection given for resale, the deduction is limited to your cost basis. If you are the creator of the gift, however, as in the case of a donation of a painting by the artist, the deduction is limited to the cost of producing the asset.

Gifts of Land

See section dealing with gifts of real estate.

Matching Gifts

Many employers will match your gift one-for-one or even two-for-one, providing additional support for Hillsdale College.  Often, these programs are extended to retirees.  If you want to know if your employer offers a matching gift program, you can find out online.

President's Club

The President's Club of Hillsdale College meets both the immediate and long-range needs and challenges of a truly private educational institution.  President's Club members provide critical leadership giving in support of the FreedomQuest campaign.

The President's Club seeks to recognize those individuals whose philosophical and financial commitment will insure the continued freedom, independence and excellence of the College and its programs.