Gift Valuation
Glossary
When a gift is made, it is of interest to both the donor and the charity to determine a fair and clear monetary value as of the date of the gift. If the donor wishes to claim an income tax charitable deduction, that value and date must be carefully determined.
In the view of the IRS, it is the donor's responsibility to value and gather documentation of all gifts, or groups of gifts, to charity. While the charity will be very helpful in this regard, it cannot absolve the donor of his/her responsibility.
In its simplest form, a gift is made to charity on the date that ownership of the asset irrevocably passes from the donor to the charity.
A seemingly easy example is writing a check. The value is easy to determine and document, but technically the date of the gift is the date you hand the check to charity or the date it is postmarked in the U.S. Postal System, (not necessarily UPS or FedEx). Be careful of this if you are making year-end gifts on December 31!
A more complex matter is a gift of stock. The gift date is, for example, the date the stock certificate is postmarked in the US mail (not necessarily the date you sign the letter or stock power) or when the shares are electronically transferred to a Clarkson account, (again, not necessarily the date you instruct your broker to make transfer). The value of the gift is the mean (average) of the high and low values of the stock on the date the gift is made.
Gift valuation can become a very technical matter. Please contact your financial and tax consultants and Clarkson for further information before you make or plan your gift.
This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisers and Clarkson University before making or planning your gift.
When a gift is made, it is of interest to both the donor and the charity to determine a fair and clear monetary value as of the date of the gift. If the donor wishes to claim an income tax charitable deduction, that value and date must be carefully determined.
In the view of the IRS, it is the donor's responsibility to value and gather documentation of all gifts, or groups of gifts, to charity. While the charity will be very helpful in this regard, it cannot absolve the donor of his/her responsibility.
In its simplest form, a gift is made to charity on the date that ownership of the asset irrevocably passes from the donor to the charity.
A seemingly easy example is writing a check. The value is easy to determine and document, but technically the date of the gift is the date you hand the check to charity or the date it is postmarked in the U.S. Postal System, (not necessarily UPS or FedEx). Be careful of this if you are making year-end gifts on December 31!
A more complex matter is a gift of stock. The gift date is, for example, the date the stock certificate is postmarked in the US mail (not necessarily the date you sign the letter or stock power) or when the shares are electronically transferred to a Clarkson account, (again, not necessarily the date you instruct your broker to make transfer). The value of the gift is the mean (average) of the high and low values of the stock on the date the gift is made.
Gift valuation can become a very technical matter. Please contact your financial and tax consultants and Clarkson for further information before you make or plan your gift.
This web page does not provide legal or financial advice, nor is it a comprehensive review of the topic. You should consult your legal and financial advisers and Clarkson University before making or planning your gift.