CASH - LIFE INCOME - LIFE INSURANCE SECURITIES - REAL ESTATE
Convenience of Cash
Cash is a popular form of charitable gifts, easily recorded through canceled checks and receipts. As an itemizer, you may deduct cash gifts up to 50 percent of your adjusted gross income. Any excess may be deducted over the next five years.
Save by Non-cash Gifts
Stocks (including mutual funds), many bonds, other publicly traded securities, and certain other non-cash properties make excellent gifts.
Increased in Value?
When securities and other qualified properties have increased in value and have been held for at least a year and a day, you can usually save more by giving such property rather than an equivalent amount of cash.
You receive a double tax benefit when you give appreciated property. You are allowed to deduct the cost of the increase in value without paying the capital gains tax which would be due on the sale of a property.
Decreased in Value?
If the property you wish to give has decreased in value, it is usually best to sell it and give the cash proceeds. You may then be able to take a capital loss on your federal income tax return, as well as a deduction for the amount of the resulting cash gift.
Many corporations have a complete matching gift policy. If you qualify, be sure to complete the necessary form to multiply your gift dollars.
Would you consider a gift through a charitable remainder trust or other gift plan? If the gift is finalized before the end of the year, you will receive a charitable deduction for the year.