Epsilon Theta Corporation, Inc. - SPUR Tax Information

SPUR Tax Information

Some tax information concerning donations to Epsilon Theta:

The following information is true to the best of our knowledge, but donors should also consult with their tax attorney or accountant.

Are donations to ET tax-deductible?

No. The Epsilon Theta corporation is a tax-exempt, 501(c)(7) non-profit organization but not a qualified 501(c)(3) charity.

Is there any way I can make a tax-deductible gift to ET?

For major gifts, you may be able to make your donation to the MIT IRDF fund and specify that you wish it to be used for a grant to Epsilon Theta. A small portion of our renovations costs will be eligible for a grant from the MIT IRDF. Since any donations to MIT IRDF in excess of the eligible costs portion of our renovations will be kept by MIT, please consult with the SPUR committee if you are interested in this option so that we may coordinate amounts.

Are donations to ET subject to the gift tax?

Yes. If you donate more than $10,000 in one year to ET, you are subject to the gift tax. We recommend that pledges of over $10,000 be paid to ET over a number of years. In the case of a married couple, each person may donate up to $10,000 to ET in a single year.

Can I donate stock to ET?

Yes. Use the following information to make the donation:

Receiving Firm: National Financial Services LLC/Fidelity Investments
DTC Number: 0226
For the Benefit of: Epsilon Theta Corporation, Inc.
For final credit to: Acct. No. Z42-379794

When you have made the donation, please contact Ted Allison (allison (at) alum . mit . edu), the corporation treasurer, and let him know the donation has been made.

Will I be liable for capital gains tax on the sale of stock which I donate to ET?

No. If you donate the stock to ET directly (do not sell the stock), you are not liable for capital gains tax on it.

Will I be subject to the gift tax on stock donations?

If the market value of your donated stock exceeds $10,000, you would be subject to the gift tax. If you plan to donate stock with a market value exceeding $10,000, we recommend that the transfer take place over multiple years.

Will ET be liable for capital gains tax on the sale of donated stock?

No. ET will sell donated stock, but since we are a tax-exempt organization, we will not be subject to capital gains tax.