You can reduce the effective cost of your gift by funding it with appreciated assets, such as real estate or securities, in lieu of cash.
In most cases, if you have owned a security or a parcel of real estate for longer than one year, you receive an income tax charitable deduction based on the current value – regardless of your original purchase price.
Such a gift can also bypass the capital gains tax that would be due if you sold the asset.
Before you initiate any gift of real estate or securities, we urge you and/or your advisors to contact the Office of Gift Planning, at email@example.com or 540-231-2813, to help ensure your strategy works as you intend.
Please note: If you wish to bypass the capital gains tax on an appreciated asset you must transfer the asset directly to the Virginia Tech Foundation Inc. If you sell the asset and donate the proceeds, your gift becomes a cash contribution on which you would be subject to applicable capital gains tax.