Personal Property
A gift of artwork, coins, antiques, or other personal property can be an excellent way to support PSU.
A gift of personal property may be right for you if one or more of the following situations apply to you
- You own artwork, antiques, or a collection of value that you no longer want.
- You own other personal property that would be useful to PSU.
- You want to save income taxes or capital gains taxes.
- You would like to make a gift to PSU.
How It Works
You donate your personal property to PSU. Either we put your property to a use related to our mission, or we sell your property and use the proceeds.
Gifts of artwork, coins, and other collectibles
You can use artwork, coins, and other collectibles to make a generous gift to PSU. Depending on the property that you donate, we may either keep it and use it for our charitable purposes or sell it and use the proceeds.
Gifts of other personal property
You may own equipment, supplies, or other personal property that you no longer need and would be useful to PSU. Please discuss these items with us prior to your donation to determine which ones we will be able to put to productive use.
Relieve yourself of responsibility
Maintaining valuable collectibles, such as works of art or antiques, can be a big responsibility. By giving your collectible to PSU, you will no longer be responsible for keeping it secure, preventing its deterioration, or paying to insure it against damage or loss. If you are in this situation, consider making a gift of the items to us.
Tax benefits
Your gift of personal property will save you income taxes, provided you itemize, and capital gains taxes.
If we are able to use the item(s) that you donate to advance our charitable purpose, you will be eligible for an immediate income tax charitable deduction equal to the full appraised value of your property. If we cannot put your property to a “related use,” or you direct us to sell your property immediately for cash, your income tax charitable deduction will be limited to the amount that you paid for your property.
Whether or not we are able to put your gift property to a related use, you will avoid all potential capital gains tax on your property. If you were to sell property that is considered a collectible, you would have to pay a special 28 percent tax on the difference between its current value and what you paid for it, rather than the 15 percent tax applied to sales of securities.
You may also save estate taxes, as once you give your collectible or other personal property to PSU the property will no longer be part of your estate.
Appraisal requirements
You will need a qualified independent appraisal of your property in order to establish the value of your gift. If you donate personal property valued at $5,000 or more and you wish to take an income tax charitable deduction for your gift, you will need to include this appraisal with your federal income tax return.
Consult with PSU before making your gift
It is important that you discuss with us the personal property that you are considering for donation before you make your gift. We want to be sure that we can accept the property that you have in mind.
Also, we will want to discuss with you what will happen to your property once the University receives it. We want to be sure that we will be able to carry out your wishes. This discussion will also help you anticipate the likely tax benefits of your gift.
Example
Jared Miller has been an avid stamp collector since he was a kid. His collection was appraised for insurance purposes last year at $20,000. Jared paid only about $2,000 for his stamps.
Jared is in his 80s now and is no longer adding to his collection. None of his children has expressed an interest in taking it over. A devoted supporter of Plymouth State University for many years, he wonders whether we could make good use of his collection.
After a discussion with Jared and his advisors, we determine that it would be best for PSU to sell the stamp collection and use the proceeds. Jared is pleased that the value of his stamps will help support Plymouth State and that the stamps themselves will wind up in the collections of others who will enjoy them as much as he has.
Because PSU will sell the stamps and use the proceeds, Jared will be able to deduct from his income taxes only the $2,000 he paid for the stamps. Jared understands this and is anxious to proceed with his gift, knowing that it will provide valuable support to PSU, and settle what is to become of his beloved collection.
