Best Assets for Giving

Cash
Cash is a frequently used asset for all forms of charitable gifts and provides the most immediate deductions. Every dollar you give will be deductible up to 50% of your adjusted gross income, if you "itemize." Excess deductions can be carried over and deducted in up to five future years. A $1,000 contribution saves $350 for a person in the 35% tax bracket, $250 for someone in the 25% bracket. Tax savings are not the reason friends support our endeavors, of course, but they do enable supporters to do more than they might have thought possible. But the results may be better if you give investment assets that have gone up in value.

Investment Assets
People often are surprised to learn that there are different tax results from giving different types of property. Gifts of highly appreciated securities, for example, may be particularly favorable. If stocks have been owned more than one year, then donors can deduct not just their original cost, but also any "paper profit" present in the gift. Best of all, there are no capital gains taxes due when you give securities. Mutual funds and other types of investments offer the same advantages.
Call us before . . . you sell profitable stocks.

Real Estate
The tax benefits available for gifts of highly appreciated real estate are virtually identical to those for gifts of securities that have gone up in value. First, you avoid capital gains tax on your profit. Second, you receive an income tax charitable deduction for the full fair market value of the property you contribute.
Call us before . . . you sell investment real estate, vacation property or farm land.

Collectibles
Some of our friends find they have "hidden assets" that can help them in satisfying their philanthropic goals. Antiques, paintings and other "collectibles" – even patents and copyrights – can be valuable assets for giving. In many cases, the same favorable tax rules apply to these gifts that apply to securities and real estate. Please check with us on the feasibility and tax results of gifts of unusual items.
Call us before . . . you sell collectibles at a profit.

Business Interests
Many of our friends own stock in their own businesses that can be given at extremely low cost, providing personal deductions that are "paid for" by the company.
Call us before . . . you sell your business, sell replacement stock from an employee stock ownership plan (ESOP) or plan for passing your business to the next generation.

Individual Retirement Accounts (IRAs) for Those Over Age 70½
Through 2009, IRA owners age 70½ and older can arrange distributions to qualified organizations, up to $100,000 per year. No income tax deductions are available for IRA gifts, but donors may save taxes anyway where gifts take the place of required minimum distributions. To make a gift from your IRA, just contact your IRA trustee or custodian. State that you wish to have a distribution check issued in our name and mailed to our office with a note identifying you as the donor. It’s important that you notify our office so we can to ensure that you receive the necessary receipt.