Lehigh University:

A gift may be in the form of cash, securities, closely held stock, real estate, life insurance, or tangible personal property.
     
Gifts of Cash
The greatest number of donors making gifts to Lehigh give cash. Gifts of cash are deductible for federal income tax purposes, up to 50% of the donor's adjusted gross income. Amounts exceeding this limit can be carried forward for tax purposes for five years.
     
If you decide to give a gift of cash, your check should indicate the purpose of your gift and be made payable to "Lehigh University" and sent to: Lehigh University, Development Office, 27 Memorial Drive West, Bethlehem, Pennsylvania 18015-3086.

Gifts of Securities
A substantial tax advantage may be available to you if you give highly appreciated securities. For example, when the tax deduction for a charitable gift and the effects of such a gift on capital gains tax are taken into account, the actual cost to you may be significantly less than giving the cash equivalent to the value of the securities. Gifts of appreciated property are subject to a limit of 30% of your adjusted gross income. Amounts exceeding this limit can be carried forward for tax purposes for five years.
Gifts of securities should be made to Lehigh in one of two ways:

(1) If the securities are in your possession, mail the unendorsed certificates to:

Denise M. Blew
Lehigh University
Associate Vice President of Finance and Administration
27 Memorial Drive West
Bethlehem, Pennsylvania, 18015-3088

In a separate envelope, mail to the same address one signed stock power form for each security you are contributing, leaving all other information to be completed by the University. Stock power forms are available from your banker, broker, or the University's Development Office. Please include a note with your name and address and the purpose of your gift.
     
(2) If the securities are in a bank or brokerage account, please instruct your broker to contact Lehigh's Treasurer's Office for transfer instructions.
The Treasurer's Office telephone number is (610) 758-3179. Lehigh's Federal Tax Identification Number is 24-0795445.

Gifts of Closely Held Stock
Contrary to popular belief, a donor can make a charitable gift of closely-held shares of stock in his/her own company and receive the same tax benefits as if those shares had been publicly traded. The key to this scenario is to have an appraisal of the company completed in order to value each share of stock. The donor must secure and pay for the cost of independent appraisal.
     
The donor then transfers ownership of a block of shares in the company to Lehigh through a deed of gift. Although not bound to do so, Lehigh then sells the shares back to the company either for a lump sum payment or a promissory note. These shares are now redeemed by the company and there are fewer shares outstanding.
     
The donor is entitled to an income tax deduction for the fair market value of those shares and his/her company has actually paid for the gift.
     
You are advised not to send securities to a corporate transfer agent because this will cause considerable delay in the completion of the gift. Also, if you sell the stock in your name and send the proceeds to Lehigh, you may be liable for capital gains tax.
  
A charitable gift is considered to be completed on the "date of delivery," which determines the tax year in which the gift is deductible and the value of the gift.
     
Stock contributions are completed when the certificates are delivered unconditionally and in negotiable form:
- to an authorized representative of the university;
- to the university in person or by private carrier;
- through the regular U.S. mail with the postmark serving as the date of the gift.
Please note: you should not rely on a private postage meter or private carrier
{e.g. Airborne, Fed Ex, UPS} to establish the date of delivery;
- or by a broker or banker transferring the stock into Lehigh's account.
     
Special rules govern the date of the gift when securities are given under certain life income agreements.

Strategy Tip:
As the shares given to Lehigh have been redeemed, fewer outstanding shares mean that those persons holding shares now own a greater percentage of the company.  Thus, a tax-free transfer of ownership has occurred. 

Gifts of Real Estate
Real estate gifts can be made in the form of undeveloped property, a personal residence or farm, rental property, or commercial property.

The owner of the property is entitled to an income tax deduction based on the appraised value of the property.

There are several ways of making a gift of real estate to Lehigh. You may make an outright gift of your property or give Lehigh a part interest; sell your property to Lehigh at a price below market value, making a gift of the difference; or give your home to the University yet continue to live in it for life.
     
The donor must submit a copy of a qualified appraisal with his/her income tax return for the year of the gift. Also, IRS Form 8283 must be submitted and signed by Lehigh acknowledging the gift.

If Lehigh sells the property within two years of the date of the gift, the university must submit IRS Form 8285 reporting the sale price.
     
Lehigh carefully examines each piece of real estate prior to its acceptance as a gift in order to reduce the possibility of liability issues related to Lehigh owning the property.

Gifts of Life Insurance
(Immediate and Deferred)
The large cash value resulting from a relatively small premium makes a life insurance policy an attractive planned gift. You are entitled to a charitable deduction by making a gift of life insurance in one of the following ways:

• Donate a fully paid-up policy. In estate and financial planning, it is quite common to discover that some policies purchased years ago no longer serve as important security now. Naming the University as irrevocable owner and beneficiary may provide an income tax charitable contribution, the amount of which will be determined by your tax basis in the policy. Also, this removes the policy from your taxable estate.

• Donate a partially paid-up policy on which premiums are still owed, naming the University as irrevocable owner and beneficiary. The charitable contribution will be the approximate cash surrender value. Additional deductions will be generated by any further premium payments you make.

• Purchase a new policy. The insurance industry offers other types of policies which limit the number of premiums that must be paid. You are entitled to a deduction for all premiums paid if Lehigh is made owner and beneficiary of the policy, provided that under applicable state law there is an insurable interest. Consult your financial advisor to determine whether you qualify. The Planned Giving Office at Lehigh has information on this matter.
     
Although there is no immediate charitable tax deduction for naming Lehigh only the beneficiary and not also the owner, assignment may result in a future gift to the University and reduce your estate taxes.
     
A sample letter to obtain assistance from your insurance company in order to make a charitable gift of your life insurance is available from the Lehigh Development Office.
     
Gifts of Tangible Personal Property
Books, artwork, and stamp collections are just a few examples of gifts which may fit into Lehigh's collections and may be items which you and your heirs no longer want to maintain.
  
FREQUENTLY ASKED QUESTIONS ABOUT LIFE INCOME GIFTS
• What life income gift vehicles are available?
• How much should I give?
• How can a wealth replacement plan allow me to give to Lehigh as well as my heirs?
• Should my gift be restricted or unrestricted?