Did you know that with the new Emergency Economic Stabilization Act of 2008, the Federal government now allows those who are over age 70 ½ to rollover amounts from an IRA, up to $100,000 per year, to your favorite charity without claiming any increased income or paying any additional tax? Read on for other ways to give:
Ways to Give
Giving options provide exceptional planning strategies and flexibility and may minimize tax implications.
• Reduce your income taxes
• Avoid capital-gain tax
• Increase your spendable income
• Retain payments for life
• Achieve no-cost, worry-free asset management
Types of Giving Include:
Gifts of Assets
The simplest way to support 600million.org is through cash gifts. But creative gifts of assets can include stocks, bonds, and property (real estate and personal property such as artwork). These can not only provide you with charitable deductions, but often offer additional tax savings as well.
Tangible Personal Property: Artwork, Collectibles, and Other Items
As with gifts of long-term capital-gain securities or real estate, you are entitled to a charitable deduction for a gift of long-term capital-gain tangible personal property such as works of art, rare books, and stamp or coin collections, etc. (Note: The capital-gain tax rate on such assets is 28 percent.) How much you can deduct depends on the so-called standard of "related use."
Life Insurance
An important but frequently overlooked role of life insurance is the one it can play in charitable gift planning. Life insurance itself can be the direct funding medium for a gift, permitting the donor to make a substantial gift (face value of policy) for a relatively modest annual outlay (i.e., the premium payment).
• Cash, Check, or Credit Card
Gifts of cash are the most common form of contribution to 600million.org. A gift of cash is easy to do, and the gift is not subject to gift or estate taxation. A contribution that you postmark in December is deductible for that tax year—even if 600million.org receives it in January—provided the account against which the check was written had sufficient funds to cover it in December.
A cash gift entitles you to a charitable deduction for the amount of your gift. You may deduct up to 50 percent of your adjusted gross income for the year of your gift. If all deductible gifts in a year exceed the 50 percent limit, you may carry the excess amount over as a deduction for up to five years.
Pledges
Pledges provide you an opportunity to make a larger gift than you otherwise thought possible by committing your gift over a period of three to five years. Ideally, your pledge should be documented in writing.
• Gifts of Appreciated Securities: Stocks, Bonds, Mutual Funds, and Other Assets
Smart gift planning combines charitable intent with cost-efficient planning techniques. Of critical importance is the kind of asset used to fund the gift. Usually, long-term appreciated property can generate the most favorable tax benefits. Reason: Gifts of such property provide a double benefit—a charitable deduction, in most cases, for the full fair-market value of the property—plus avoidance of any potential capital-gain tax.
• Charitable Bequests - Gifts by Wills
Through various types of bequests for 600million.org, you may secure a charitable estate-tax deduction for the value of the gift. Best of all, you will know that your generosity will support 600million.org for years to come.
• The Charitable Gift Annuity—Immediate Payment
To establish a charitable gift annuity, you make a gift to 600million.org and in exchange receive a fixed annual dollar amount for life. The principal remaining at your death will then benefit any 600million.org program that you choose.
• The Charitable Remainder Unitrust
The unitrust provides for annual payments to the designated beneficiary(ies) of a specified percentage—at least 5 percent of the value of the trust as it is valued each year. Since the value of trust assets may vary from year to year, the payments may also vary. At the death of the last income beneficiary, the trust principal is distributed to 600million.org.
• The Charitable Remainder Annuity Trust
The annuity trust provides for payment of a fixed dollar amount—annually or at more frequent intervals—to the designated beneficiary(ies).
• The Deferred-Payment Gift Annuity
This type of gift might appeal to you if you want to support 600million.org, you're 40 to 60 years old, have a high income, need to benefit now from a current tax deduction, and are interested in augmenting potential retirement income.
• Real Estate
The rules about giving real estate are essentially the same as for gifts of securities. Almost any type of real estate may be donated: undeveloped land, farms, commercial buildings, vacation homes, or your residence.
• The Charitable Lead Trust
Transferring property to 600million.org and individuals you wish to benefit is not always an either/or proposition. With careful planning, you may be able to arrange your transfers to accomplish more than one objective. For example, if you have assets that are appreciating, children who may want to start a business in the future, and a desire to assist 600million.org, you may wish to consider creating a charitable lead trust. Such an arrangement would allow you to benefit 600million.org —until your children are ready and able to step out on their own—while minimizing any potential transfer taxes.
• Closely Held Business Stock
A business owner who contributes closely held stock to 600million.org will be allowed a charitable deduction for the fair-market value of the stock. An additional benefit is that the donor will escape the potential capital-gain tax on any appreciation in the value of the stock.
• Gifts of Retirement-Plan Benefits
You may consider using retirement-plan benefits to make a significant gift that will support 600million.org. And because of the estate- and income-tax treatment of retirement-plan benefits, the cost of your gift to your estate and heirs is often relatively small.
COMPARISON TABLE
If You Would Like to... |
Then Consider... |
How You May Benefit |
Support 600million.org today
Receive a charitable income tax deduction |
An outright gift of cash |
Deduct 100 percent of the gift value from this year's income-tax liability |
Make a larger gift to 600million.org
Avoid capital-gain tax
|
A gift of appreciated stock |
Provide increased support to 600million.org while decreasing the cost to you |
Make a significant future gift without affecting your current lifestyle |
A charitable bequest |
Reduce estate and death taxes, and retain control over your assets during your lifetime |
Make a significant gift to 600million.org
Retain an income for yourself
|
A charitable gift annuity |
Receive a current income stream and an immediate income-tax deduction |
Make a significant gift to 600million.org
Retain an income for yourself
|
A charitable
remainder unitrust |
Receive a current income stream and an immediate income-tax deduction |
Make a significant gift to 600million.org
Retain an income for yourself
|
A charitable remainder
annuity trust |
Receive a current income stream and an immediate income-tax deduction |
Receive a charitable income- tax deduction now
Receive income later |
A deferred-payment
gift annuity |
Receive an immediate income-tax deduction and income to begin at a future date you choose |
Leverage the equity in one of
your largest assets to support
600 MILLION STRAY DOGS
NEED YOU |
A gift of real estate |
Receive an income-tax deduction and avoid capital-gain tax while retaining the option to live in your home |
Use your assets to support 600million.org today
Retain control over the distribution of those assets to heirs
|
A charitable lead trust
|
Freeze value of assets contributed for gift- and estate-tax purposes |
Minimize taxes on the transfer of a business you own
Provide support for 600 MILLION STRAY DOGS NEED YOU
|
A gift of closely held
business stock |
Receive an income-tax deduction, avoid capital-gain tax, and retain planning flexibility |
Leave assets to 600million.org and your heirs upon your death but you are not sure what to leave whom |
Naming 600 MILLION STRAY DOGS NEED YOU as a beneficiary of your
retirement plan |
Avoid estate tax on retirement-plan assets while making other property available to pass to your heirs |
Make use of assets you may no longer need to support 600 MILLION STRAY DOGS
NEED YOU |
A gift of a paid-up life
insurance policy |
Immediate income-tax deduction for the net cash surrender value of the policy at the time of transfer |
Disclaimer
The discussion herein is general in nature and may not apply to all individuals. Prospective donors are urged to consult their personal tax and financial advisors concerning the specific consequences of making gifts to 600million.org. We would be pleased to discuss, in confidence, ways in which you may support 600 MILLION STRAY DOGS NEED YOU. These measures may also have an impact on your estate planning.
The discussion herein is general in nature and may not apply to all individuals. Prospective donors are urged to consult their personal tax and financial advisors concerning the specific consequences of making gifts to 600million.org. We would be pleased to discuss, in confidence, ways in which you may support 600 MILLION STRAY DOGS NEED YOU. These measures may also have an impact on your estate planning.
For further information, please contact Alex Pacheco at 954.464.9331 or Alex Pacheco or Maria Papazian at 305.519.0877 or mail to: Maria@600dogs.org.
Puppy Love
Alex and Shelby
Alex outdoors in June 2010
Maria – at Boomerang in June