Throughout the year, there are many occasions when you want to give a special gift - one that can truly make a difference. Whether it is gifts for the holiday season or gifts in honor of a loved one, your contribution is important. As you consider donations, you will want to take advantage of any tax benefits that may be available to you. The following information describes several gift options that you will want to examine as you review the charitable gifts you want to make before the end of the year. The tax deductions associated with these gift options apply if you itemize your tax deductions. Contact the Development Office at 229.732.5990 or firstname.lastname@example.org if you need any assistance.
1. Gifts of Tangible Personal Property - Antiques, works of art or other collectibles can be deducted at the full fair market value if the property can be used directly by the charitable organization. If the organization is better served by selling the property, your deduction is limited to the cost basis of the property.
2. Gifts of Appreciated Property - Stocks, bonds or mutual funds which have risen in value since their purchases make excellent gifts. If you sell them you generate a capital gains tax and could pay up to 28% of your gain to the IRS. If you donate them, there is no capital gains tax due. In addition:
• gifts of securities held longer than 12 months can be deducted at their full fair market value.
• such gifts can be deducted up to 30% of your adjusted gross income and excess deductions can be carried forward into as many as five additional tax years.
3. Gifts of Cash - Cash contributions are the easiest to make and the most effective because they can be immediately earmarked for our current needs. If you itemize your tax return, all cash gifts may be deducted up to 50% of your adjusted gross income.
4. Gifts of Life Insurance - The gift of life insurance is easy, convenient, and allows you to give more than may be possible otherwise. Your options are many and include:
• giving a paid-up policy
• purchasing a single premium policy with our organization as the owner and beneficiary
• buying a new policy with our organization as the beneficiary
• adding our organization as a beneficiary to an existing policy
5. Gifts in Honor of a Loved One - Through a memorial or honorarium gift you can pay special tribute to a loved one while making a charitable gift to our organization. Any of the gift options mentioned in this brochure can be made as memorial or honorarium gifts. All of the same tax deductions apply.
6. Gift of a Legacy - When you include our organization in your will you insure your lifetime contribution to our future work. There are several simple ways of leaving a bequest to us through your will. You can give:
• a percentage of your estate
• a fixed dollar amount
• specific property such as stocks or real estate
• the residue of your estate
7. Life Income Gifts - Life income gifts give you the opportunity to help our organization in the future while you enjoy immediate tax benefits. The benefits include:
• the opportunity to receive fixed or variable payments for life
• the opportunity to provide benefits for a surviving beneficiary
• income tax deductions can be taken in the year of the gift and can be carried forward into as many as five additional l tax years if necessary
• savings from estate and inheritance taxes on assets transferred to our organization
• current income tax deductions for donating a personal residence or farm while continuing to live in or use the property for the rest of your life
• avoiding capital gains tax when using appreciated property to fund certain life income agreements.