Information regarding the Endowment Program will be forthcoming. |
 |
YEAR END GIFTS |
Careful planning today can result in a nice gift from Uncle Sam when tax time rolls around!
The federal government encourages you make to make a gift to a charitable qualified charity. Your gift may be made in a number of ways depending on your particular situation. And careful planning is the key to maximizing your benefits. The following may be helpful as you consider the best way to make your year-end gift. |
|
CASH |
| Cash is still the most popular way to make charitable gifts. And your gift of
cash to a qualified charity prior to December 31 could cost you much less at tax
filing time. For example, if you make a $2,000 gift before December 31 and are
in the 28% marginal tax bracket, your gift could save you $560 in taxes. The
federal government recognizes the contribution non-profit organizations make to
society and assists in making the gift through tax deductions. |
|
SECURITIES |
| Gifts of appreciated securities or stock can be one of the most advantageous
ways of giving. If your gift of stock is one you have owned for more than one
year, you may deduct the full fair market value of the stock as a charitable
contribution, while bypassing all capital gains taxes. |
|
| REAL ESTATE |
Gifts of appreciated real estate are like gifts of appreciated stock. Assuming you have owned the property for more than one year, you may deduct as a charitable contribution the fair market value of real estate while avoiding all capital gains taxes. |
|
INSURANCE |
Life insurance is a unique way to give to charity. To qualify, the charity needs to become the owner and beneficiary. No incidents of ownership should be retained. If the policy is paid, your charitable contribution is generally the replacement value or cost basis of the policy, whichever is less. Ongoing premiums paid on a gifted life insurance policy also qualify for charitable deductions. |
|
PERSONAL PROPERTY |
Gifts of tangible personal property related to the charity’s exempt purposes are fully tax – deductible at fair market value. Gifts of tangible personal property given to charity which are not related to its tax-exempt purposes are limited to cost basis for determining your tax deduction. |
|
UNITRUST |
The unitrust provides a unique way to give -- offering substantial tax savings while providing an annual income to you and your family. The unitrust is funded with an asset – appreciated property or securities are usually best. Within the unitrust, the assets can be sold and the proceeds reinvested to produce a greater yield for the donor(s) or beneficiary(s).
The income stream is a fixed percentage (not less than 51%) of the net asset value of the trust, which is valued at least annually. As the value of the trust increases, so does the income payout, providing a hedge against inflation. Immediate benefits of a unitrust include:
1. A current income tax deduction
2. Bypass of capital gains taxes
3. Usually an increase in income
There are also several future benefits. |
|
GIFT ANNUITY |
You receive a lifetime income between 5.5% and 12%, depending on age. More if you defer the income until later, You get a tax deduction, tax-free return of principal and defer capital gains tax if funded with appreciated assets. Part of your gift helps the organization right now. |
|
| AN AMERICAN TRADITION |
Charitable gifting is an American tradition --one unparalleled by any other country. Through current tax laws our government encourages you to express your charitable support. Through careful planning you can: identify the method for making a contribution which best fits your situation; and maximize the impact of your gift on the charitable organizations you support. We will be pleased to provide you with more information and assist in any way as you consider the possibilities for your year end gifts.
Our assistance is provided without cost or obligation and is completely confidential. Please contact us for further information regarding charitable contributions to City Impact.
* This information is printed solely for educational purposes. For specific recommendations, each person should consult his or her own qualified professional advisor. |
| |
| |
