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Gift Planning :: Tax Implications
How Much of Your Contribution is Deductible and When
The maximum allowable income tax deduction in any year for all your charitable contributions depends upon the type of assets given. The deduction for a given year is an amount equal to a percentage of your adjusted gross income less any net operating loss carryback to that year. Information regarding that percentage is provided below. Oberlin also advises that you seek counsel from your financial and legal advisors when making your plans for charitable giving.
Cash
You may deduct gifts of cash to Oberlin up to 50 percent of your adjusted gross income in any given year.
Property
Provided you have owned property for more than one year, you may deduct the fair market value of gifts of securities, tangible personal property that has an educational function, and real property up to 30 percent of your adjusted gross income in any given year. If you have owned the property for one year or less, or if tangible personal property can not be used to further Oberlin's educational mission, then you may deduct only your cost basis in the property, but you may do so up to the 50 percent limitation.
“Excess” Contribution
If you are unable to deduct all of your charitable gifts in the year of transfer, you may carry forward any “excess” contributions for up to five subsequent years.
Deferred Gifts
Life income gifts such as gift annuities, pooled income fund gifts, and charitable remainder trusts provide the donor with a charitable deduction in the year in which the gift is made to the College. The deduction is calculated using U.S. treasury tables and gender-neutral life-expectancy tables. The deduction generally represents the present value of the gift portion of the amount being given to the College. The Office of Gift Planning will calculate the charitable deduction for you. The charitable deduction will vary from gift to gift based on the ages of the beneficiaries, the rate of income being paid back to the donors, and the type of gift vehicle used.
Substantiating Your Contribution to Oberlin
You substantiate your gift of cash by retaining a copy of your canceled check and the gift receipt provided by Oberlin College. The public reporting of the selling prices of marketable securities and your gift receipt provided by Oberlin College will substantiate the value of such a gift. In order to substantiate the value of an outright or deferred gift of real property or tangible personal property in excess of $5,000, you must obtain an appraisal in a form acceptable to the Internal Revenue Service.
Alternative Minimum Taxpayers
If you are an alternative minimum taxpayer, your deduction for a gift of appreciated property may be limited to your cost basis in that property by operation of the alternative minimum tax. All explanations and examples provided in this web site assume that you are not, nor will your gift make you, subject to the alternative minimum tax.
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