The most common form of charitable contribution is the outright gift of cash or other assets made to a charitable organization during the donor's lifetime. These gifts can range from small donations of cash or property to large endowments. Outright gifts to charity can be made in a variety of forms, depending upon the size of the gift and the objectives of the donor. Following is an overview of some of the options available for structuring outright gifts to charity.
Gifts of Life Insurance
Life insurance offers an alternative method for making a charitable gift to the University.
For example, a donor may:
a) give a policy that is fully paid up and take a deduction for the "present value" of the policy, as determined for tax purposes, (which generally is the approximate cash surrender value)
b) purchase a new policy of which Pepperdine University is designated the owner and beneficiary.
Gifts of Real Estate
A gift of real estate may be a principal residence or vacation residence, a farm, a commercial building, or unimproved land. The gift may be the entire property or a fractional interest in the property.
Gift of a Residence or Farm with Retained Life Interest
A donor may give Pepperdine his or her personal residence or farm, yet continue to
live there for life. Further, the donor's spouse may live there for life. The donor
receives an immediate tax deduction for the contribution, based on the value of Pepperdine's
The property does not have to be the donor's primary residence -- it may be a vacation or second home, as long as the property is used as a personal residence. Further, in the case of a farm, the donor does not have to reside on the property.
Gifts of Securities
Securities, both publicly traded and closely held, and bonds can be used to make a gift to Pepperdine University. A donor is entitled to a charitable tax deduction equal to the value of the securities on the date of the gift. Pepperdine is able to sell the securities and employ the proceeds, without reduction by capital gains taxes because of its status as a non-profit organization.
Gifts of Tangible Property
A donor should remember that all tangible personal property, such as paintings and other works of art, will be subject to estate taxes. By giving such items to Pepperdine during your lifetime or at death, you may realize certain benefits and discover a new way to make a gift. Gifts of tangible personal property that are related to the University's purpose generally produce a deduction equal to the fair market value of the property. Gifts which do not have a related purpose may generate a lower tax deduction but can still be attractive for contribution.