Cash 
Marketable Securities
Mutual Fund Share
Closely Held Business Interests
Real Estate
Personal Property
Life Insurance

1. Cash

Cash is the most direct way to make a gift for achieving the goals proposed for the Foundation. Funds so received for endowment will be invested according to policies approved by the Wardens and the Vestry. Gifts of cash are tax deductible to the extent allowed by law. Print a pledge form.

2. Marketable Securities (back to top)

These investments make excellent gifts for many donors to consider. When a person owns securities which have a long-term gain and gives them to the Foundation, the donor may be able to take the full fair market value of the securities as a charitable deduction on his or her income tax returns and also avoid all capital gains taxes.

The quickest and easiest way to transfer securities to the Foundation is for the donor to instruct his or her broker to transfer the securities from the donor’s account to one registered to the Foundation at the same brokerage house. If the Foundation has no account with the brokerage house, it is a simple matter to set one up, and the Foundation officials can facilitate this. If the donor chooses to deliver stock certificates, they should be sent unendorsed. To transfer the securities, the donor should execute a stock power naming Delta State University Foundation, Inc. as the new owner. If mailed, the unendorsed certificates and the stock power should be sent in separate envelopes. Transferring securities between brokerage houses or through the transfer agent are the least desirable methods as they may delay the transfer by as much as two weeks and make it difficult for the donor to control the date of gift.

3. Mutual Fund Shares (back to top)

As with marketable securities, a gift of mutual fund shares, if they have been held long term and have appreciated, can enjoy the double advantage of a charitable deduction and capital gains avoidance. If the shares are kept in street name at a brokerage house, the transfer procedure is similar to that for marketable securities. If the shares are held at the mutual fund company, follow the company’s transfer procedures.

3. Closely Held Business Interests (back to top)

This includes corporations, partnerships and other forms of business organization. The tax deduction is based on the appraised, fair market value. Common partnership gifts include those involving real estate, oil and gas properties or equipment leases. Under special circumstances, a partnership interest may also be used to fund a charitable lead trust. Another option is a family limited partnership, which is used to arrange for the orderly transfer of stock to the next generation and to receive substantial estate and gift tax savings. The inclusion of the Foundation as one of the limited partners results in favorable tax treatment for the donor and the successors in the partnership.

4. Real Estate (back to top)

Real estate may be given outright or with the donor retaining a life estate contract (See Gifts That Pay Income below.) The types of property which might be given include residential, rental, business, or farm real estate. Both fractional and total interests may be considered. The Foundation may require a Phase I Environmental Audit. The tax deduction is based on the appraised, fair market value.

5. Personal Property (back to top)

Gifts of tangible personal property related to the mission of the Foundation are welcomed. At its option, the Foundation may retain such items in its permanent collections. The donor may take an income tax deduction for the appraised fair market value of the objects.

6. Life Insurance (back to top)

There are many types of life insurance gifts. The most common is an assignment of an existing policy that is currently in force and paid up. The donor names the Foundation as owner and beneficiary. The benefits to the donor are in both gift and estate tax considerations. In a gift of a policy that is not paid up, later premium payments are also deductible for tax purposes. Federal tax regulations indicate that the gift value of an insurance policy is the value of the policy at the time of transfer of ownership. Life insurance arrangements might take one of the following forms:

• Making the Foundation the Owner and Beneficiary of an Existing Policy
• Purchasing a New Policy for the Foundation
• Replacing Charitable Gifts in One’s Estate