Leave a Legacy


Bargain Sale

Receive immediate cash and make a gift to The LeTourneau University Foundation by selling to us a valuable asset, such as real estate, for less than it is worth.

A bargain sale may be right for you if:

  • You want additional cash now.
  • You itemize your deductions and want to save income taxes.
  • You want to save capital gains tax on the sale of your property.
  • You own a valuable asset that you are willing to sell for less than it is worth.
  • You want to make a gift to The LeTourneau University Foundation.

How It Works
You sell real estate or other property to The LeTourneau University Foundation for less than it is worth.
You receive immediate cash equal to your sale price. Your property becomes ours to use or sell.

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A bargain sale is a simple agreement in which you sell property, such as real estate or some other valuable asset, to The LeTourneau University Foundation for less than the property is worth.

Eligible property
It is possible to sell any sort of property to The LeTourneau University Foundation for a bargain price. In addition to real estate, you can complete a bargain sale arrangement with collectibles such as artwork or antiques, other personal property, or securities. Please contact us about the property you are considering so that we can discuss whether we would be interested in acquiring the property for a bargain price.

Tax benefits
You will receive an income tax charitable deduction in the year of your gift. The amount of your deduction will equal the difference between the fair market value of the property you donate and your sale price. Your income tax savings will depend on if you itemize your deductions. (Note that if your bargain sale asset is tangible personal property, such as artwork or antiques, that The LeTourneau University Foundation does not put to a use related to our exempt purpose, your deduction will be based on your cost basis rather than the fair market value of the property.)

You will also avoid capital gains tax on a portion of your capital gain in the gift property. For example, if you sell your property to us for one third of its fair market value, you will pay capital gains tax on just one third of your capital gain in the property. If the asset you sell to us is subject to debt, this debt will be added to your sales proceeds to determine your capital gains tax.   

By removing your property from your estate, you may also reduce estate taxes and probate costs when your estate is settled.

Special considerations
If you are interested in selling us real estate or tangible personal property at a bargain price, you will need to establish the value of your property by obtaining a qualified independent appraisal.

To be valid for claiming your income tax charitable deduction, your appraisal must be conducted no more than 60 days before the bargain sale is completed and no later than the due date, including extensions, of the tax return for the year in which you make your gift.

If you are considering a gift of real estate, our organization requires the following additional steps before we accept your gift:

  • We will need to examine your property and conduct our own analysis of its value. For example, we will want to know if there are any debts, taxes, or liens owed on your property.
  • Once we accept your gift of real estate, we could become responsible for cleaning up any environmental problems your property may have. This sort of cleanup could be very expensive. Therefore, before we accept any gift of real estate, we routinely conduct a review to make sure the property has no environmental issues.

Example

Tyler Kennedy, a devoted supporter of The LeTourneau University Foundation, owns vacant land in an area under rapid development that he purchased years ago for $15,000. The land was recently appraised at $250,000. Tyler would like to make a major contribution, but he is planning improvements to his home, and he needs about $50,000 to finance his project.

Tyler is thrilled to learn that a bargain sale arrangement will allow him to make the contribution he envisions and get the cash he needs to complete his home improvement project. He’s also pleased with his $200,000 income tax charitable deduction, which will create tax savings in the year of his gift that more than offset the capital gains tax he’ll need to pay. This example assumes Tyler is able to itemize his income tax charitable deduction.  

Facts  
Value of land $250,000
Cost of land $15,000
Capital gain $235,000
Sale price $50,000 

 

Benefits  
Income tax deduction $200,000
Capital gain to report $47,000
Capital gain avoided $188,000
   
Income tax saved at 37% rate*  $74,000
Capital gain tax at 20% rate - $9,400
Net tax savings   $64,600
   
Cash to Tyler + $50,000
Total benefit to Tyler  $114,600

*Assumes 37% rate and that Tyler itemizes his income tax charitable deductions.

“Estate and Legacy Planning” – Does it Really Matter?

Think about this: early in the life of Israel we see the Lord repeatedly reminding them about the importance of passing on to “their children and their children’s children” God’s testimony of faithfulness (Deuteronomy 4:9 and following).  God went on to tell the children of Israel that He wasn't’t talking directly with their children, but rather with them – because “their eyes had seen” all that the Lord had done (Deuteronomy 11:2-7). 

Estate planning, when done with intentionality and by including a narrative of one’s life, can be an incredible means of motivating future generations.  Further empowering such planning with tax wise strategies that endow heirs as well as those ministries that have had an impact upon you and your family assures there is a means by which that consistent behavior is facilitated!

Watch for our next installment where we will purpose to unpack …

  • what estate and legacy planning is
  • why it’s important
  • what it looks like

and most importantly,

  • how it can be a compelling motivation for succeeding generations when it is empowered with an integrated level of charitable gift planning

As always, if we can be of service to you in this area, or for any questions you may have, please do not hesitate to email us at leavealegacy@letufoundation.org or call us toll-free at 903-500-2972 and ask for Tom Bevan.

And always a proper disclaimer: When considering what we might point to by way of a benefit to you in any given situation, always assure to consult your legal and tax advisor for what qualifies as the actual tax treatment of that scenario in your unique situation.

Scholarships play a major role in the lives of LETU students. More than 90% of the student body receives financial assistance from scholarships, grants, and loans. But with graduating seniors incurring significant financial debt, it is our goal to lessen the burden and increase our scholarship aid. Endowed scholarships play a vital role in decreasing the debt burden on students.

Why do LETU alumni and friends choose to establish Endowed Scholarship Funds?

  • To perpetuate the memory or legacy of a loved one;
  • To honor positive role models who have significantly influenced others;
  • To invest in today's students who will influence every workplace and every nation for Christ tomorrow.

Endowed Scholarships provide significant impact:

  • Equip leaders for tomorrow today;
  • Recruit and retain outstanding students seeking the hands-on, Christ-centered education that has for decades been the strength of LETU;
  • Recognize and reward outstanding performance by students with demonstrated financial need.

Endowed professorships, chairs, programs and schools are also available. Call 903.233.3833 to establish your endowment today.

Many companies will match their employees' charitable gifts. Some will even match the donations of retirees or employees' spouses! You can make your money double or even triple and at the same time invest in students' lives.

If your company is eligible, request a matching gift form from your employer's Human Resources department. Complete, sign and send in the completed form with your gift- every time you give a gift! Inform your employer of your donation and give them LeTourneau University's mailing address (2100 S. Mobberly Ave. Longview, TX 75607) so they can make the match. We will do the rest.

Giving a cash gift isn't the only way you can support LeTourneau University students. All you have to do is sign up for all the programs below and then let your shopping do the donating. It's that easy! Your normal, everyday shopping will help the LETU Annual Fund provide scholarship aid to deserving students. Thank you!

Give by Shopping

You're going to buy things anyway, right? Here are some ways your purchase can benefit LeTourneau University.

Amazon Smile
Start your shopping at smile.amazon.com, choose LeTourneau University as your selected organization, and the AmazonSmile Foundation will donate 0.5% of the price of your eligible purchases.

Kroger
If you are a KrogerPlus member, Kroger's Community Rewards program donates a portion of your eligible purchases to the organization of your choice. Choose LETU! Visit https://www.kroger.com/topic/kroger-community-rewards-3 to enroll with your membership card and choose LeTourneau University (NPO# 84780). Don't forget to re-enroll each year to continue in the Community Rewards program.

Tom Thumb
Tom Thumb's Good Neighbor Program allows customers to direct donation dollars to a favorite church, school or other non-profit organization. Visit the courtesy booth at your local store to link your reward card to our account (use our Charity# 9090).

Give by Donating Goods (Gifts-in-Kind)

CONTACT:

Breaking News: New legislation has passed that can grant continued tax incentives for giving in 2021.
Click here for info.  

800.259.LETU [Toll-Free]

903.233.3801 [Fax]

Email
leavealegacy@letufoundation.org

Mailing Address
Office of Development
LeTourneau University
P.O. Box 7333
Longview, Texas 75607-7333