Itemized tax deductions for a charitable contribution to a charitable organization may be taken on the date that the contribution is made to the Foundation. Donors are encouraged to consult legal or tax advisors to review their personal situation, however, contributions of the following assets are most often treated as stated. Deductibility will depend in part upon the type of asset contributed to the Foundation.

• Cash: Amount of cash contribution accepted by the Foundation.
• Publicly Traded Securities: If held for more than one year, the mean of the high and low prices reported on the date the contribution is made to the Foundation. For mutual fund shares held for more than one year, the closing price on the date the contribution is made. For securities or mutual funds held for one year or less, the deduction is for the lesser of the cost basis or fair market value.
• Real Estate: If held for more than one year, the fair market value on the date of contribution is made to the Foundation. For real estate held less than one year, the deduction is based on the lesser of the cost basis or fair market value. These types of transactions require review by the Board prior to contribution. The Internal Revenue Service requires an appraisal for any contributed asset for which you will claim a deduction of more than $5,000.
• Closely Held Stock and other securities: For securities that are not publicly traded and have been held for more than one year, the fair market value as determined by the donor in a reasonable manner on the date the contribution is made to the Foundation. The Internal Revenue Service requires an appraisal for any contributed asset for which you will claim a deduction of more than $5,000. For securities held for one year or less, the deduction is for the lesser of the cost basis or fair market value.

Individual donors, including non-vested donors, are eligible for an itemized deduction for cash contributions to the Foundation in an amount up to 50% of the donor’s adjusted gross income (AGI) in the tax year in which the contribution is made. Deductions for contributions of appreciated assets held for more than one year are limited to 30% of AGI. Any excess amount may be carried forward and deducted in the five-year period after the year of contribution. A donor’s ability to benefit from a deduction may be subject to certain IRS limitations. Please seek legal or tax advice to determine your individual tax circumstances.

Investment income that is earned in connection with donated assets is income of the Foundation. Because it does not belong to the donor, this income does not constitute an additional charitable deduction by the donor. Such income is reflected in the account balance of the individual donor-advised fund.

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