Planned Giving

Planned giving is as easy as (1) making a charitable gift, and (2) saving taxes. We’d like to make it even easier with this primer on some of the best ways to give – and save.

Gifts of Cash

If you itemize, you can lower your income taxes simply by writing us a check. Gifts of cash are fully deductible – up to a maximum of 50 percent of your adjusted gross income. For example, if your adjusted gross income for this year is $50,000, up to $25,000 of charitable gifts may be deducted this year. Any excess can generally be carried forward and deducted over as many as five subsequent years.

Gifts of Stock

If you own stock, it is often more tax-wise to contribute stock than cash. This is because a gift of appreciated stock generally offers two-fold tax savings. First, you avoid paying any capital gains tax on the increase in value of the stock. Second, you receive an income tax deduction for the full fair market value of the stock at the time of the gift.

Always check with your accountant or other tax advisor for the advantages (and possible drawbacks) of making a planned gift, based upon your particular circumstances.

Gifts of Real Estate

A gift of real estate can also be tax-wise. A residence, vacation home, farm, acreage or vacant lot may have so appreciated in value through the years that its sale would mean a sizeable capital gains tax. By making a gift of this property instead, you would avoid the capital gains tax, and, at the same time, receive a charitable deduction for the full fair market value of the property. It is also possible to make a gift of your home, farm or vacation home so that you and your spouse can continue to use it for your lifetimes – while you receive a current income tax deduction.

Gifts of Life Insurance

A gift of life insurance can provide a significant charitable deduction. You could purchase a new policy or donate a policy that you currently own but no longer need. To receive a deduction, designate us as both the owner and beneficiary of the life insurance policy. Check with your insurance agent for the details.