REASONS FOR GIVING PROPERTY
"I want to support Mississippi State University, but I am unable to make a large cash gift at this time." | "My investment property has appreciated as much as it's going to. I can't afford the capital gains taxes if I sell it now." | "This land has been in my family for generations. I want to ensure that others will benefit from it."
It's a charitable gift
Giving property is one way that you can benefit Mississippi State University. Just like gifts of cash or securities, gifts of property may be used to benefit any area of the university that you wish — whether it be scholarships, faculty programs, athletics or campus facilities. Your gift can be used to provide an education to a deserving student, to endow a faculty position that will enable Mississippi State to attract premier educators or to enhance a program that will improve student opportunities or beautify the campus. We will listen to your desires and help you find the perfect fit for your gift.
It provides tax benefits
There are many tax benefits associated with gifts of property. If you have owned your home or other real estate for a long time, it has certainly increased in value, and selling it will mean paying capital gains tax on the appreciation. With gifts of property, you may:
- Avoid capital gains taxes
- Avoid estate taxes
- Earn a tax deduction
For a more detailed description of potential tax savings, please read Methods of Giving below.
Property has fully appreciated
Perhaps over the time you have held your property it has fully appreciated. Selling it is not the most desirable option because of the capital gains tax it will incur. By making a gift to Mississippi State, you can resolve this issue while also making a significant investment in the university.
Property has devalued
It may be that property you have held for some time has decreased in value due to changing surroundings or market demand. For example, an older commercial building in a declining neighborhood may be worth as much to you now, in terms of a charitable income tax deduction, as it is likely to be worth in the future. Developed investment or commercial property may provide significant capital gains tax savings when used to make a gift while avoiding potential depreciation recapture. It may also be used to fund a charitable remainder trust paying an income for life. A gift to MSU provides a win-win situation for both parties.
Property value is stunted
Agricultural land tends to return a low percentage of its market value. This is especially true of absentee-owned land, where tenant shares and farm managers' fees often reduce owners' profits. Also, profitability varies depending on the weather and commodity markets. These factors can make agricultural land an ideal charitable gift.
The hassle of selling is avoided
By giving property to the MSU Foundation, you avoid the burden of finding a real estate agent. You will not have to be concerned with preparing the property for sale. Our knowledgeable real estate team will walk you through the giving process no matter how you choose to give.
No more upkeep of property
Maintenance of property, especially when you are not close by, can become cumbersome. By giving it to Mississippi State, you can make a meaningful investment in our faculty and students while avoiding homeowner fees, property taxes, timber maintenance and a host of other issues.