With this type of gift, the donor sells appreciated property to the Purdue Research Foundation for less than the present fair market value. A charitable deduction is allowed for the difference between the sales price and the fair market value. The donor incurs gain on the difference between the sales price and the cost basis allocated to the sale element.

Taxation

• Donor is taxed on sale proceeds (capital gain)

Benefits

• Tax deduction based on value of property and sales prices
  
• Avoidance of capital gains tax on gift portion