More Details on Planned Giving

 

What is the easiest, most popular way to benefit yourself and your favorite charitable? The answer is an outright gift. When you itemize deductions on your income tax return, your charitable gift provides an immediate, tax-saving charitable deduction, and your prompt action allows us to meet our pressing needs. The date of your gift determines valuation and year of deduction. Keep in mind these other simple rules when considering an outright gift to us.

 

Gift of cash: Your cash donation is deductible up to 50% of your adjusted gross income. Any excess is deductible in the subsequent five years. If sending by mail, the postmark date is the delivery date.

 

Gifts of Securities: Gifts of stock or other securities held long term (more than a year) are deductible at full, present fair market value, with no tax on the appreciation. You can deduct up to 30% of your adjusted gross income, with a five-year carryover for any excess. If send by mail, the postmark date is the delivery date; otherwise, it's the date received by us. The stock certificate must be properly signed or accompanied by a properly signed stock power. To transfer electronically, your broker can arrange a temporary account in our name to sell the securities and transfer the proceeds to us.

 

Gifts of Tangible Personal Property Held Long-Term: If we can use the property for a purpose related to our exempt function, you can deduct its current fair market value up to 30% of your adjusted gross income, with no tax on the appreciation.

 


An Easy Way To Include Us In Your Estate Plan:

 

"I, (NAME), of (CITY, STATE, ZIP CODE), give devise and bequeath to (LEGAL NAME OF ORGANIZATION) (WRITTEN AMOUNT OF PERCENTAGE OF THE ESTATE OR DESCRIPTION OF PROPERTY)for its unrestricted use and purpose."

 

 


The Charitable Remainder Trust

 

Mr. and Mrs. Brown, ages 80 and 86 respectively, have more than 50 years. Existing on a fixed income, the couple insists on handling as much of the upkeep as they possibly can. "It keeps us young and healthy," they reassure their children, who secretly worry about their parents' future.

 

Financial relief for the Browns and emotional relief for their children was offered by way of a charitable remainder trust. Under this plan, the Browns transferred $50,000 of highly appreciated stock that was earning 2 percent in dividends to a corporate trustee of their choosing. The trustee manages and invests the trust assets, and also pays a regular income to Mr. and Mrs. Brown for the rest of their lives (an estimated 11 years). The Browns selected a variation of a charitable remainder trust called an annuity trust, which pays a fixed annual income each year from the trust, regardless of fluctuations in the economy. When the trust ends, all of the assets in the trust are distributed to the charities the Browns named in the trust agreement.

 

The Benefits

Mr. and Mrs. Brown received an immediate charitable income tax deduction of $31,6061. This results in a $8,850 tax savings, which reduces the net cost of their gift of $41,150.

 

The couple will receive a fixed annual payment of $3,000 for the rest of their lives, a $2,000 increase over the dividend originally paid by the stock. Because the stock used to fund the trust can be sold tax-free by the charity, the couple avoids $9,400 in capital gains taxes.

 

At the termination of the trust, the charities the Browns have chosen are receive to an estimated total of $87,000.

 

1 Based on an 8 percent charitable midterm federal rate.