What types of gifts can I give to The College of New Jersey?
- Outright gifts during your life: you can make an outright gift of cash, securities (stocks, bonds, etc.) or other property (which could be real estate or personal property).
- Gifts made upon your death: you can state a gift be made in your will (a bequest) or with a distribution from a retirement plan (such as an IRA) or by naming TCNJ a beneficiary of a life insurance policy.
- Gifts that provide lifetime income: You can make a gift that returns a lifetime income to you, your spouse or other individuals by creating a charitable gift annuity or charitable remainder trust.
What types of assets can I use to make a gift?
You can donate almost anything: cash, publicly traded securities, part of your retirement account are a few common examples. Other assets such as real estate, closely held stock, artwork, patents or royalties are more complicated to administer and must be discussed with us to ensure the gift will be beneficial for both the donor and TCNJ.
What tax deduction will I receive for my gift?
There are many variables that depend upon each particular gift.
- Outright gifts to The College of New Jersey Foundation will generate a full income-tax charitable deduction. Donating appreciated securities result in a deduction at the fair market value of the security (you pay no capital gains tax).
- Gifts of personal property such as art, books and collectables receive a full deduction for their value but they must be relevant to the mission of TCNJ. Our Office of Planned Giving can you advise you on these types of donations.
- Charitable gift annuities or charitable remainder trusts can provide a charitable deduction. We suggest utilizing our convenient online gift calculator as the charitable deduction varies widely.
- Bequests or life insurance distributions to TCNJ are not income-tax deductible during your lifetime. They are exempt from estate taxes however.
Note – if you have made TCNJ the irrevocable owner and beneficiary of an insurance policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details, please see Question 5 below).
Can The College of New Jersey serve as the Executor of my estate?
No. State law, the limitations of our corporate powers and our internal policies prevent us from taking such a role in your affairs.
I have a life insurance policy and want to name TCNJ as the beneficiary but still retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS does not consider this a “complete gift.” The IRS believes that retaining the ownership of the policy, you can change the beneficiary to someone else (not a charitable organization). TCNJ must be made the irrevocable owner of the policy for your gift offsetting premiums to be considered deductible.
I’d like to donate a painting. Will TCNJ determine its value for my income tax deduction?
No, the IRS requires that you as the donor of artwork or collectibles secure an independent and qualified appraisal of the items to establish the fair market value. This must be a current appraisal and not one for insurance purposes.
I’m interested in establishing a charitable gift annuity. What financial provisions does TCNJ make for the income payments?
Your charitable gift annuity will be treated as a general obligation of The College of New Jersey Foundation, backed by all the Foundation’s assets. Our record of making timely payments to our annuitants is unblemished, and that ongoing responsibility is a key element in our financial policies.
I’m establishing a unitrust. My bank will serve as trustee and I’m naming The College of New Jersey as the remainder beneficiary. My attorney is advising me to make that designation revocable. Will TCNJ still recognize me as a donor?
We are grateful that you have named us as beneficiary. The charitable portion of your gift is deductible for income tax purposes (see Question 3 above). However, since our interest is not irrevocable, we cannot give you gift credit until our remainder interest is payable or made irrevocable.