Making a charitable gift to Hawkeye Community College is an important and very personal decision. The following information may be helpful as you consider the various ways to support Hawkeye and to benefit from the tax advantages associated with certain types of charitable gifts.
For all your options and the tax effect for you, please consult your tax advisor.
Gifts of Cash
Your actual “cost” may be less than the dollar amount of the gift if you itemize deductions on your tax return. You can deduct up to 50 percent of your adjusted gross income in the year you make a contribution. Any excess contributions above this percentage may be deducted over a five-year period.
Please complete the Contribution Form [pdf] if you wish to give a gift of cash.
Matching gifts can double the impact of your gift! Many employers sponsor matching gift programs and will match charitable contributions made by their employees. Some companies also match gifts made by spouses and/or retirees. In many cases, all you need to do is complete a form furnished by your employer and forward it to Hawkeye Community College Foundation office. Check with your employer’s human resources office for more information.
Stock and Bonds
Gifts of appreciated stock held for more than one year require no capital gains on the transaction. If you itemize deductions on your taxes, you would be entitled to a charitable deduction for the full fair market value of the stock. Your income tax deduction is limited to 30 percent of your adjusted gross income. Any excess can be carried forward for five additional years.
If you have stock losses, generally you should not contribute the stock. Sell the stock yourself to realize the loss for tax purposes, then contribute the cash and take a charitable deduction.
First, you avoid paying capital gains on the transaction; second, in most cases you receive a deduction based on the fair market value of the property; and third, you remove the asset from your taxable estate.
These gifts may be more advantageous than out-right cash gifts because you can make a larger gift at less cost, assuming you own the property that has increased in value and it has been held long enough to qualify as long-term property.
If you have property that has decreased in value, you should consider selling the property first and then contributing the proceeds to the Hawkeye Foundation. This allows you to receive the deduction for both the capital loss and the charitable gift.