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Gifts of Real Estate Benefit Augsburg and DonorBY DAVE BENSON, PLANNED GIVING SPECIALISTGifts of highly appreciated real estateare often an excellent means for adonor to make a charitable gift toAugsburg College because they allowyou to make a gift larger than youthought possible, plus they provideimmediate and long-term tax advantages.The first step is to have anappraiser determine the gift value whenthe property exceeds $5,000. If you givereal estate, you receive a charitablededuction for the full fair market valueof the property (regardless of its costbasis). The College may then sell theproperty for its full market value anduse the entire proceeds to support itsprograms. Everyone wins.Here’s an example of how a gift ofreal estate will benefit Augsburg:The Andersons own 60 acres offarmland past an outer ring suburb.Recently, they were approached aboutselling 20 acres of their property for$100,000. The land was purchasednearly 20 years ago for $5,000 and,when sold, they will realize substantialcapital gains.Mr. and Mrs. Anderson have oftenthought about making a significant giftto Augsburg College and now it appearsthis may be an appropriate gift asset tobenefit both the College and themselves.By giving the property toAugsburg (that may then sell it to aninterested buyer), the Andersons receivea charitable deduction for the full fairmarket value ($100,000) of the proper-ty. While their income tax deduction islimited to 30 percent of their adjustedgross income, when filing their taxes,they can claim the gift in the year it wasgiven plus carry forward the allowablededuction for five additional years.Another tax benefit occurs shouldthe Andersons also choose to sell anotherportion of their land outright. Whilethat sale will have the same capital gainsliability, the charitable deduction fromthe college gift may be used to offset thecapital gains obligation on the sale liabilitywere they to sell the land outright.Because your situation will be somewhatdifferent from the Andersons, contactthe Development Office at 612-330-1462for many other gift-giving ideas. Augsburgwill provide you with sufficient informationso together with your attorney, taxaccountant and/or financial adviser youcan evaluate your gift giving options. ■CAMPAIGN GOALSHIGHLIGHTSTo ensure Augsburg’s transformingeducation is available for generationsto come, Access to Excellence:TheCampaign for Augsburg College isfocused in the following areas:SCIENCE CENTERA new Science Center and renovationof the existing Science Hall arethe centerpieces of the campaign andwill strengthen and expand sciencelearning for all.GATEWAY BUILDINGThe new Gateway Building to be builton Riverside Avenue will link theCollege and the community.SI MELBY EXPANSIONAn expansion of Si Melby Hall willaccommodate the increasingdemands on athletic facilities.ENDOWMENT SUPPORTA strong endowment means theAugsburg model of education will beavailable to future generations.ANNUAL FUNDIncreasing the Augsburg Fund willensure that no talented student isturned away due to financial need.If you would like to support these goals,contact Augsburg’s Development stafffor assistance.15