Cash, Checks, and Credit Cards
Gifts of cash are the most common form of contribution to Valpo. A gift of cash is easy to make, and the gift is not subject to gift or estate tax. A contribution of cash or by a check that is postmarked in December is deductible for that tax year—even if Valpo receives it in January—provided the account against which the check was written had sufficient funds to cover it in December. A contribution by credit card must be made by December 31 in order to be deductible for that tax year.
A cash gift entitles you to a charitable income-tax deduction for the amount of your gift. You may deduct up to 50% of your adjusted gross income for the year of your gift. If all deductible gifts in a year exceed the 50% limit, you may carry the excess amount over as a deduction for up to five more years.
Example: Edna Smith has an adjusted gross income of $50,000 this year. She contributes $35,000 to Valpo. She may deduct $25,000 this year and carry forward $10,000 to deduct next year. Since Edna is in the 28% tax bracket, her income-tax savings in the year of the gift is $7,000, with savings of $2,800 the following year.
Pledges provide you an opportunity to make a larger gift than you otherwise thought possible by committing your gift over a period of three to five years, or more in some cases. Ideally, your pledge should be documented in writing.
- View the diagram of this gift
- Contact us to learn more about this gift plan or other options
- Request an eBrochure with more information about this gift
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