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In addition to providing for the needs of HES and the community,
donors can also enjoy benefits from the charitable income tax
deductions they are entitled to as a result of their generosity. The
following information provides an explanation of the various ways
donors can plan significant gifts to HES and the campaign while
taking full advantage of the income and estate tax benefits allowed
under the law.
OUTRIGHT GIFTS Most donors who pledge support to HES will fulfill
their commitments with annual pledge payments of cash or marketable
securities of up to five years in length for gifts of $5,000 and greater.
CHECKS or ON-LINE
DONATIONS: Gifts of checks or payment via a credit card qualify
for a charitable tax deduction of up to 50 percent of a donor’s
annual adjusted gross income, provided they itemize deductions on
their tax returns.
SECURITIES: There are distinct tax advantages to considering gifts of
appreciated securities such as stocks, bonds and mutual funds. The
donor incurs no capital gains tax on appreciated securities given for
charitable purposes and can claim a charitable income tax deduction
of up to 30 percent of annual adjusted gross income (with a five-year
carry over).
CLOSELY HELD STOCK: A charitable gift of stock in a closely held
corporation with no ready market price requires a partial appraisal
summary or in the case of gifts over $5,000, a qualified appraisal to
determine the value of the gift. The donor receives a charitable
deduction based on the appraised value of the stock, incurs no
capital gains tax liability and can claim a deduction of equal to 30
percent of the annual adjusted gross income (with a five-year carry over).
REAL ESTATE: A gift of real estate or undivided partial interest that
has appreciated in value can be an attractive option when considering
a major charitable contribution. The services of a qualified real
estate appraiser are required to determine the value of a
contribution of real estate. As with other appreciated property
gifts, the charitable deduction for a gift of real estate is based on
the property’s current fair market value and the donor incurs no
capital gains liability.
CORPORATE GIFTS: A corporation can make and deduct charitable gifts
of up to 10 percent of taxable income per year.
MATCHING GIFTS: Numerous companies have matching gift programs
through which an employer can match an individual’s charitable
gift in varying amounts. Donors are urged to obtain their
employer’s matching gift forms and leverage their own gifts.
LIFE INSURANCE: The use of life insurance policies for charitable
giving is another option when planning a major contribution. A
paid-up policy yields a charitable income
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