TOUGALOO COLLEGE | TAX TIPS | TYPES OF CONTRIBUTIONS

Tougaloo College accepts three types of contributions: cash, noncash, and in-kind

Cash contributions include payments made by cash, check, electronic funds transfer, online payment service, debit card, credit card, payroll deduction, or transfer of a gift card redeemable for cash;

Noncash contributions are property with no restriction placed on them.  This includes publicly traded stock, clothing, wine collections, art, jewelry, antiques, collectible, automobiles, boats, recreational vehicles, and even your home.  The amount of your deduction is generally the donated property’s “fair market value”.  The job of determining worth is the responsibility of the donor;

  • In-kind contributions are gifts of tangible goods or services that alleviate costs to Tougaloo College.  Examples of in-kind gifts include:
  • Goods like computers, software, furniture, and office equipment.
  • Services such as meeting space, photocopy and mail services, and administrative/financial support.
  • Expertise like legal, tax, or business advice, marketing and website development, and strategic planning.

TOUGALOO COLLEGE | TAX TIPS | IN-KIND CONTRIBUTIONS

  • What is or is not an in-kind gift to the College can be a point of confusion.
    In-kind contributions are gifts of tangible goods or services that alleviate costs to Tougaloo College and can be used to advance Tougaloo’s mission.
    Examples of in-kind gifts include:
  • Goods like computers, software, furniture, and office equipment;
  • Services such as meeting space, photocopy and mail services, an administrative/financial support;
  • Expertise like legal, tax, or business advice, marketing and website development, and strategic planning.

Please note that such contributed services cannot be counted as a gift and do not qualify as a charitable tax deduction to the donor. However, a donor of services may be able to deduct expenses incurred while performing said services. In such cases, please consult with a trusted tax advisor.

Contributions that may be mistaken for in-kind include:

  • Tuition and/or related educational costs for an identified needy or worthy student;
  • Direct scholarships to identified students; Travel expenses to and from official Tougaloo College events; Value of your time and/or services;
  • Personal expenses incurred while volunteering.

This important information is from the Office of Institutional Advancement.

TOUGALOO’S TAX TIPS | CONTRIBUTIONS TO COVER STUDENTS’ EXPENSES

As the 2020-2021 academic year ends, Tougaloo College is appreciative to all donors.  As a private institution, contributions from our donors play an integral part in providing a quality education to our students.

According to IRS Publication 526, contributions earmarked for a particular student are not charitable contributions, and therefore not tax deductible.  “You can’t deduct contributions to specific individuals, including contributions to individuals who are needy or worthy.  You can’t deduct these contributions even if you make them to a qualified organization for the benefit of a specific person.  But you can deduct a contribution to a qualified organization that helps needy or worthy individuals if you don’t indicate that your contribution is for a specific person.” If you have further questions, please contact your trusted tax advisor.

TOUGALOO COLLEGE | TAX TIPS | END OF YEAR CONTRIBUTIONS

The calendar fiscal year ends at 11:59 pm on Thursday, December 31.  In order for your gift to be considered a 2020 tax year gift, it must be made, received, and/or postmarked by Thursday, December 31.

Hand delivered gifts:  For gifts that are hand delivered to Tougaloo College, the delivery date is the date we actually receive the gift. Hand delivered gifts must be received by December 18, 2020.  Tougaloo College will close about December 18, 2020 for the Winter Break.

Credit Card Gifts:  You are encouraged to make credit card gifts to Tougaloo at www.tougaloo.edu/ as these gifts can be made even when the College is closed.

Gifts Sent by Check:  The IRS considers a charitable gift made by check complete at the time the check is delivered or mailed, and the postmark is the evidence of the gift date.

Please mail contributions to Tougaloo College, Office of Institutional Advancement, 500 West County Line Road, Tougaloo, MS  39174.  Gifts delivered by overnight courier, e.g., Federal Express, UPS, and others, are deemed to have been made when they are delivered.

Thank you for continued support.

Questions?  Contact the Office of Institutional Advancement at 601-977-4458.

This article is just for informational purposes. It is not intended to be legal advice. It is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional instruction. Before taking any action, check other sources, such as the IRS, and consult with legal counsel or an accountant before you donate any considerable gift. You should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.