How you can give
Outright Gifts
Cash and pledges payable to the St. John's
United Methodist Church Foundation: A donor may deduct
up to 50% of his/her adjusted gross income in the year of the
gift and the balance in any
of the next
five succeeding years.
Securities and real estate: Depending
on the length of time held, the donor may deduct 30-50% of the
cost or fair market value
of the donor's
adjusted gross
income with a five year carryover of any excesses.
Tangible
personal property: Art, collections, antiques, jewelry,
and equipment may be donated, which are generally eligible
for charitable
income
tax deductions
equal to their cost basis.
Life insurance
Donors with life insurance policies may realize
immediate tax savings by transferring those policies to the
foundation, naming
it as the irrevocable beneficiary. Also, a donor
can take out a new policy naming the foundation, with tax
savings
from a
charitable lead trust.
Bequests
A donor can provide for the security of their family
and still leave a gift to the foundation which
will reduce estate taxes.
Charitable Remainder
Unitrusts
A donor may establish a trust from which they
or a non-charitable beneficiary receive
a set percentage of income (5% or more) after a set
number of years. The foundation receives the remainder.
Charitable
Remainder Annuity Trusts
Like the unitrust, except that the
annual income is fixed at inception and never varies.
Life Estate
Contract
A donor makes an agreement transferring title of real
estate property to the foundation. The donor retains use of
the property during their lifetime and receives any income from
it.
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Revocable Trusts and Agreements
A revocable trust pays income
and/or principal to the donor. The donor can revoke or take
back the assets at any
time. This could be a bank account or trust for the foundation.
The remaining
assets in either case pass to the foundation after
one
or two generations.
Charitable Lead Trusts
An individual whose income is substantially
in excess of their needs may create a charitable lead trust.
Under this arrangement
the donor transfers assets to a trustee who makes
distributions from income each year to the foundation
for a specified
number of years or during the lifetime of the
donor.
At the end
of the trust term, the principal is returned
to the donor
or transferred
to others designated by the donor. This type
of trust may provide the donor with substantial tax advantages
while permitting a
valuable asset to pass to the donor's heirs.
Charitable Gift Annuities
A contract is made between the donor
and the foundation to transfer property in exchange for an
immediate guaranteed life income.
The term of the contract might be for the life of the donor
and his/her surviving spouse.
Bargain Sale
This allows the donor to sell an asset for less
than its fair-market value and receive a charitable deduction
for
the difference.
The best assets for this are appreciated securities or
real estate with little or no income.
Private Foundation Transfers
Many prudent private foundations are transferring all
or part of their assets to establish a named or designated
fund with
an existing foundation of their choice. The satisfaction
of donations remains and the donor foundation benefits
through
reduced operating
expenses.
Contact Us
C.T. Herman, Foundation Committee President
email: foundation@stjumc.com
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