Outright Gifts

Outright gifts to the St. Catherine’s College (Oxford) Foundation can be used to support facilities, fellowships, scholarships and programs specified by the donor. A gift of highly appreciated assets, such as securities or real estate, offers special advantages since the portion of the fair market value that represents increase in value is generally not subject to capital gains tax. The following example demonstrates how current tax regulations favour gifts of appreciated assets to the Foundation.

Example: Mr. And Mrs. Smith own securities now worth $100,000. The original cost (the cost basis) twenty years ago, at purchase, was $20,000. If the donors transfer the shares directly to the Foundation, the full market value of the gift, $100,000, will be directed to the benefit of their choice, and they will receive a charitable tax deduction of $100,000 and completely avoid capital gains tax. If, on the other hand, Mr. and Mrs. Smith first sell the securities and contribute cash to the Foundation, the $80,000 in appreciation will be taxed at their current capital gains rate of 20 percent, or $16,000. The Smiths will have $84,000 net to contribute.

The same tax advantages generally apply to an outright gift of highly appreciated real estate.