Gifts of Stocks and Securities
The gift of an asset, such as stocks, securities or mutual funds, is a valuable way to make a contribution to Albertina Kerr Centers Foundation and receive attractive tax benefits. If you have stocks or securities that have increased in value since you purchased them, you will face a taxable, long-term capital gain from their sale. If, however, instead of selling the stock you donate shares to Albertina Kerr Centers Foundation, you do not incur any capital gains and are able to deduct the current value of the stock on your tax return as a charitable gift. You will receive a greater tax deduction by donating the stock directly to Kerr and avoiding the capital gains.
You may have assets such as land, antiques and homes which can be utilized as a potential gift with valuable tax or income benefits. Gifts of real estate can be an effective means of donating. Real estate may involve more than a home—a second home, apartment or commercial building, undeveloped land or even ownership of a shopping center. The advantages of a gift of real property are a charitable tax deduction, and possible bypass of capital gains. It may be possible to remain in the donated home for the rest of the donor’s life.
Gifts of Life Insurance
You may wish to make Albertina Kerr Centers Foundation the beneficiary of a life insurance policy while keeping the right to cash the policy in, borrow against it or change the beneficiary.
You may also wish to transfer ownership of the policy to Albertina Kerr Centers Foundation or purchase a new policy with Kerr as owner and beneficiary. In return you are entitled to certain tax advantages.
Gifts of Retirement Assets
Additionally, funds from qualified retirement plans are another excellent source of assets to give. By designating Albertina Kerr Centers Foundation as a beneficiary, funds may pass to the Kerr Foundation free of taxes. It is also possible to set up a charitable beneficiary as the recipient of any remaining funds in the account or establish a percentage to fund the bequest.
Charitable Gift Annuities
Charitable gift annuity is a contractual agreement between one or two donors and a charitable organization. In Oregon, all charities issuing gift annuities must have a certificate of authority by the State Insurance Commission. The annuity carries with it an established percentage of payment to the donor. The advantages of a gift annuity are significant; the annuity pays to the donor a guaranteed income for life, a portion of that income is tax-free, and the donor is allowed a significant tax deduction. Gift annuities may also be deferred; Kerr pays the donor an income stream that begins at a future agreed upon date. This may allow the donor to make a gift and take a charitable tax deduction immediately while in a higher tax bracket.
A Charitable Gift Annuity may also be deferred to make it possible for the donor to have an income to pay for children’s or grandchildren’s educations, supplement a retirement income, assist in the payment of expenses of a retirement or assisted-living facility and still make a gift to the charity.
Charitable Remainder Trusts
Charitable remainder trusts are attractive planning tools for individuals with highly appreciated assets who also wish to create a charitable legacy. A charitable remainder trust is a life income plan established for the life of the donor(s) and/or for the life of a named beneficiary. The charitable remainder trust is irrevocable when established—however, changes may be made that allow for a specific number of years of income, or even the changing of a beneficiary. The advantages of this instrument are a bypass of capital gains, the potential for increased income and a charitable tax deduction. Because of fewer assets being held by the donor, there is a reduction in the estate tax exposure.
Charitable Lead Trust
A charitable lead trust is a powerful way to make a future transfer of donor assets to heirs with reduced gift and estate tax costs, while also supporting Albertina Kerr Centers Foundation with income. For a designated number of years, all proceeds are paid to the charity. At the end of the term, the assets pass to named beneficiaries. Advantages of this type of trust are the deduction of a charitable gift determined by the present value, a transfer at a given time to the donor’s heirs, the amount of the charitable gift is deducted from the taxable estate and the benefits are immediate to the charity receiving a donation.