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Other Ways to Give
Most Americans
vastly under-estimate their total net worth, since we mainly
look at the balances in our checking accounts. But most of us
have a variety of different assets, and these assets can be used
to help support the AIDS Support Network (ASN). In addition to
supporting a very important organization, there are also tax
deductions that could save you significant dollars. Let’s look
at the ways you can give...
Cash:
A gift of cash
is always a good gift. The gift is deductive up to 5O % of
you’re your adjusted gross income (AGI), and any excess
deductions can be carried over for an additional five years.
Appreciated
Securities:
Long-tern
stocks, bonds or mutual funds that have increase in value make
excellent gifts. You can deduct the fair market value in the
year you make the gift AND avoid paying any capital gains tax.
You can deduct up to 30% of your AGI for this type of gift with
a five-year carry over provision as well.
Real
Estate:
Home and land
values on the Central Coast have made significant gains in
recent years. A gift of real estate allows the donor to deduct
the fair market value of the property, enjoy a 30% tax deduction
and avoid paying capital gains tax.
Bequests:
Perhaps the
easiest way to support ASN is to make a bequest through your
will or trust. Your estate will receive a charitable deduction
for the full amount given and avoid any estate tax issues.
Other
types of planned gifts…
There are many
types of charitable gifts that will occur in the future and
could provide annual income and significant tax benefits. You
should always consult a professional tax advisor before
considering these types of gifts.
Charitable
Remainder Trusts (CRT)
:
This type of
gift will provide you with an income for life. You contribute an
asset into a trust. This trust pays either an annuity or a fixed
percentage on an annual basis. When you or those you name in the
trust pass on, what’s left in the trust (the “remainder”) will
go to ASN. There are many advantages: You get an immediate
income tax deduction and pay no capital gains tax on any
appreciated property placed in the trust. You can even serve as
the trustee for the CRT.
Charitable
Lead Trusts:
Somewhat the
opposite of a CRT, where you place an asset in the trust and ASN
would receive an annual payment from the trust as long as you
live. When the trust terminates, all the principal is returned
to you or your heirs.
Life
Insurance:
An un-needed
life insurance policy can make an excellent gift. By naming ASN
as the owner and beneficiary of the policy, you get an immediate
deduction. You can also deduct future unpaid premiums on the
policy. You can also keep ownership and name ASN as sole or
partial beneficiary. Your insurance representative will have a
designation form allowing you to name ASN as a beneficiary.
There are
other planned giving techniques such as pooled income funds and
gift annuities that might be available to help ASN. Check with a
member of the Central Coast Planned Giving Council on these
options.
The bottom
line is that there are many creative ways to help ASN achieve
the goals of providing care and support for persons living with
HIV/AIDS. The important thing is to determine what you can give,
the best method to give, then make the gift.
For more
information please contact David Kilburn, Coordinator of Finance
at 805-781-3660 x 210.
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