Ways to Give
There are many ways a company or individual may give a gift to the SCC Foundation. While the greatest benefit offered to donors is the satisfaction of helping change lives of SCC students, there are also ways to give that provide immediate or deferred tax benefits. These benefits allow donors to make a greater impact without spending more money.
Cash Gifts
Cash contributions to the SCC Foundation, a 501(c) (3) non-profit corporation, are fully deductible to the extent allowed by federal law.
Unrestricted Gifts
Cash contributions may be given to the college without designations or restrictions, for the college to use on the initiatives it deems most critical. These are called unrestricted gifts.
Restricting your contribution
Donations may also be designated by the donor to a particular scholarship or program. These are called restricted gifts.
Endowing a Fund at SCC Foundation
Endowments are truly gifts that last forever. An endowed fund can be established to support scholarships or general initiatives of the college. The principal of the endowment is invested and interest from the fund is used to provide annual support for the chosen initiative. A minimum contribution of $20,000 over a 3-year period is required to establish an endowment.
Gifts of Stocks and Securities
Gifts of appreciated stocks can allow individuals to make larger gifts with small out-of-pocket expense. If a donor contributes stocks held for more than one year that have appreciated in value, the donor may receive a federal income tax deduction for the fair market value of the security on the date it is transferred to the SCC Foundation. Gifts made in this way avoid capital gains taxes on any sale of the stocks. If stocks have been held for less than one year, the federal deduction is based on the cost basis of the security, not its fair market value on the date of the gift. If you wish to make a gift of securities that have depreciated in value, it is better from the tax perspective to sell the stock first, realize the loss and give the proceeds to the SCC Foundation.
Gifts of Property and In-Kind Gifts
Most of the tax considerations noted above for securities also apply to gifts of real property. Special tax benefits are available if residences or farms are the object of a donation. The donor can realize immediate tax benefits while still reserving the lifetime right to use and enjoy the property.
Contributions of equipment (e.g. computers, instructional aids, inventory), if related to the mission of the college and usable in the educational process, are also valued gifts. These donations can provide meaningful tax benefits for the donor.
Planned and Deferred Gifts
One of the simplest ways to provide for SCC is through a bequest in a will or living trust. Giving in this way helps reduce estate and inheritance taxes, but does not provide any immediate income tax advantages. There are other giving agreements that can provide immediate income tax benefits, provide a stream of income for the life of the donor, or others designated by the donor, reduce estate and inheritance taxes, and provide significant support for the programs and students at SCC. These types of giving are arranged through charitable gift annuities, charitable remainder trusts, charitable lead trusts, and other instruments that may sound complicated, but are easily established as a component of your estate planning. Please contact a trained financial planner to find out more about the substantial tax savings gained by leaving a legacy to SCC.
Additional Information
To learn more about the many ways to give to SCC, please contact the Foundation Office:
Greg Bednar, Executive Director
507-389-7342
greg.bednar@southcentral.edu
Martha Broadbent Johnson
Administrative Assistant for Foundation & Alumni
507-389-7446
martha.broadbentjohnson@southcentral.edu.
Students need us now, more than ever. SCC continues to build a strong community that will continue to flourish even in difficult economic times. Please support our efforts.