A gift of artwork, coins, antiques, or other personal property can be an excellent way to support Moravian Theological Seminary.
A gift of personal property may be right for you if:
- You own artwork, antiques, or a collection of value that you no longer want.
- You own other personal property that would be useful to us.
- You want to save income taxes or capital gains taxes.
- You would like to make a gift to Moravian Theological Seminary.
How It Works
You give your personal property to Moravian Theological Seminary. We either put your property to a use related to our mission, or we sell your property and use the proceeds.
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) you give us 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 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 this property, you would have to pay a special 28% tax on the difference between its current value and what you paid for it, rather than the 15% tax applied to sales of securities.
You may also save estate taxes, as once you give your collectible or other personal property to Moravian Theological Seminary the property will no longer be part of your estate.
You will need a qualified independent appraisal of your property in order to establish the value of your gift. If you give personal property valued at $5,000 or more and you wish to take a charitable income tax deduction for your gift, you will need to include this appraisal with your federal income tax return.
Consult with us before making your gift
It is important that you discuss with us the personal property you are considering for donation before you make your gift. We want to be sure that we can accept the property you have in mind.
Also, we will want to discuss with you what will happen to your property once we receive it. We want to be sure we will be able to carry out your wishes. This discussion will also help you anticipate the likely tax benefits of your gift.
Harold Mortensen has been an avid stamp collector since he was a kid. His collection was appraised for insurance purposes last year at $20,000. Mr. Mortensen paid only about $2,000 for his stamps.
Mr. Mortensen 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 Moravian Theological Seminary for many years, he wonders whether we could make good use of his collection.
After a discussion with Mr. Mortensen and his advisors, we determine that it would be best for Moravian Theological Seminary to sell the stamp collection and use the proceeds. Mr. Mortensen is pleased that the value of his stamps will help support our organization and that the stamps themselves will wind up in the collections of others who will enjoy them as much as he has.
Because Moravian Theological Seminary will sell the stamps and use the proceeds, Mr. Mortensen will be able to deduct from his income taxes only the $2,000 he paid for the stamps. Mr. Mortensen understands this and is anxious to proceed with his gift, knowing that it will provide valuable support to Moravian Theological Seminary, as well as settle what is to become of his beloved stamp collection.