Cash is the easiest of all assets to transfer in order to fund a life income gift to Wellesley College. Ordinarily, the receipt of your check by the College concludes the transaction. A life-income gift (such as a charitable gift annuity or a pooled income fund) is likely to provide higher income than either a certificate of deposit or a savings account.

Many donors who own highly appreciated securities are reluctant to sell because of the capital gains tax on the appreciated portion of the assets. Using securities to fund a life income gift is a way to avoid incurring capital gains tax liability.

In reviewing their assets, donors often find that real estate, whether their primary residence or vacation home, has appreciated more than their other assets. A gift of real estate to Wellesley College can offer significant benefits to both the donor and the College.

A gift to the College results in a charitable income tax deduction based on the fair market value of the property at the time of the gift. In addition, the donor is able to avoid any capital gains tax liability.

A gift of real estate can be structured to provide a life income (usually through a trust or a deferred payment gift annuity). Whatever gift vehicle is chosen, the donor enjoys a charitable income tax deduction (for a portion of the gift's value) in the year the gift is made.

Special Considerations:
To ensure that the gift transfer takes place smoothly, the following guidelines apply:

• Property should be readily saleable so that the College does not incur undue carrying expenses;
• A qualified appraisal must be provided by the donor to substantiate the value of the property;
• The real estate should be mortgage-free.

A donor may decide to make a gift of her principal residence or vacation home to the College and retain the right to live in the house for her lifetime. The donor receives a charitable income tax deduction for a portion of the fair market value of the home in the year of the gift and retains rights and duties of ownership for life.