When you make a future or planned gift, you help so many people. Remembering A Lift Up Org in your estate plans or will directly impacts the lives of your neighbors in need. Arrangements can be made to leave a legacy in your will for A Lift Up Org. You can leave a specific amount or a percentage of your assests. Gifts may include but are not limited to: stocks, bonds, Guaranteed Investment Certificates, real estate, art, and jewelry.
Planned giving is as easy as giving a charitable gift and saving taxes. Here are a few examples of the easiest and best ways to give and save. We recommend you speak to your financial advisor about planned giving.
GIFTS OF CASH
If you itemize, you can lower your income taxes by simply writing a check to A Lift Up Org. Gifts of cash are fully deductible up to a maximum of 50% of your gross income.
For example, if your gross income for the year is $60,000, up to $30,000 of charitable gifts may be deducted for the year. Any excess can generally be carried forward and deducted over as many as five subsequent years.
GIFTS OF STOCK
If you own stock, it is often tax-wise to contribute stock than cash because a gift of appreciated stock generally offers savings. First, you avoid paying capital gains tax on the increase in value of the stock, and secondly, you receive an income tax deduction for the full market value of the stock at the time of the gift.
For example, if you purchased stock many years ago for only $1,000, and it is now worth $10,000, and outright gift of stock to A Lift Up Org would result in a charitable contribution deduction of $10,000. In addition, there is no tax on the $9,000 appreciation in value. Check with your tax advisor about current tax regulations. There are some stipulations on how long you have owned the stock verses how much is deductible.
GIFTS OF REAL ESTATE
This can also be a tax-wise gift. A residence, vacation home, farm, acreage, or vacant lot may have so appreciated in value through the years that its sale would mean a sizable capital gains tax. By making a gift of property instead, you would avoid the capital gains tax, and, at the same time, receive a charitable deduction of the full fair market value of the property.
GIFTS OF LIFE INSURANCE
You could purchase a new policy or donate a policy that you no longer need to receive a deduction. Designate A Lift Up Org as both the owner and beneficiary of the policy for significant tax benefits.
For example, Mr. Smith owns a $100,000 life insurance policy with a current cash value of $34,000. By transferring the policy to us as the new owner and beneficiary, Mr. Smith is able to receive a current charitable deduction in the amount of $34,000. If he decides to continue paying the premiums on the policy after the gift is made, these additional premium payments will be deductible each year.
BEQUESTS
A Lift Up Org can be named as a beneficiary in your will in a couple of simple ways:
- An outright gift, either a dollar amount or percentage of your estate;
- We could also be named as a remainder beneficiary to receive funds only after specific sums have been paid to individual beneficiaries.
It may be helpful to know that you can easily add us to your will through an amendment to your will called a codicil; thus your entire will does not have to be rewritten.
CONCLUSION
This information cannot tell you everything you need to know about planned giving and which method may be best for your particular financial situation. Check with your attorney or tax advisor for additional information and how the rules pertain to you. Not all the available methods of giving are listed here, nor all the tax ramifications of each form of gift has been described.
