Give for the Future
It is easy to give in other ways through corporate gifts,
gifts of stock, real estate, personal property, retirement
assets or life insurance.
Gifts of Stock or Securities
The gift of an appreciated asset, often common stock or mutual
fund shares, is a valuable way to make a contribution to the Patient Access
Network that allows you to receive tax benefits based on the value of the asset(s).
For example, suppose Mark and Lindsey have 400
shares of ABC Corporation that her parents purchased at
$15 a share some years ago. The current value in today's
market is $36 a share. If they sold the stock in the market,
they would have a taxable, long-term capital gain on the difference
between their cost and what they would receive from the sale ($36 - $15 = $21 capital gain per share).
They would be taxed on $8,400 (400 shares x $21) in capital gains.
Mark and Lindsey could sell the stock, pay the tax on the
capital gain of $8,400, and either keep or donate the proceeds.
If, however, instead of selling the stock, they gave the 400
shares to charity, they would not incur any capital gains and
would be able to deduct the current value (400 shares X $36 = $14,400)
on their tax return as a charitable gift.
By donating the stock, Also, Mark and Lindsey receive a greater
tax deduction by giving the stock directly to the charity and avoiding
the capital gains taxes. The charity receives a larger gift than it would
receive if Mark and Lindsey first sold the stock and then donated the proceeds
after deducting the capital gain taxes.
Call the PAN office at 202-347-9272 or email@example.com
to further discuss ways to give.
Gifts of Personal Property
Also known as a gift-in-kind, gifts of personal property can be charitably
gifted to Patient Access Network. Gifts-in-kind such as books, equipment,
real estate, and artwork can qualify donors for charitable gift credits on
their tax returns. Gifts-in-kind must be properly appraised through the donor's
efforts. For more information, please call 202-347-9272 or firstname.lastname@example.org
Gifts of Real Estate
Gifts of real estate can be an effective means of planning a gift.
Often a house, a second home or investment properties, are a significant
part of net worth. Gifts of real estate, therefore, can enable you to make significant contributions.
Each piece of property and its unique circumstances need to
be reviewed to determine the suitability of the property as a gift.
Generally speaking, a rule of thumb is that an acceptable piece of property is
one that can be readily sold. Also, there are many ways to donate property.
It can be an outright gift, a retained life estate, or placed in a trust.
In addition to making a significant contribution, there can be other benefits for you:
- There may be a charitable income tax deduction that would lower your income tax.
- If your property has appreciated in value since you acquired it, there might be a large
capital gain tax that would result if you sold it. By donating the property, you may be able to
avoid realizing the capital gains.
- Depending on your state regulations, you may be able to turn the property into a gift that is
structured to provide income for you and a beneficiary.
- If the property is your home or farm, you may be able to make a gift of it now and continue to
live in it for the rest of your life and receive tax benefits the year of the gift.
- If the contribution from your property exceeds the allowable charitable deduction limits,
the deduction may be carried forward for five years.
If you are considering such a gift to PAN, please contact Emily Acland at 202-347-9272 or
Gifts of Life Insurance
There are several ways in which use your life insurance policy to help PAN patients.
These include making PAN a beneficiary of your policy, donating your policy to
PAN,by wealth replacement of your policy or by making a life insurance trust.
Making the Charity a Beneficiary of your Life Insurance Policy
You may wish to make the Zoo the beneficiary (or a contingent beneficiary)
of a life insurance policy as a way to make asizeable future gift. You retain
ownership of the policy, keeping the right to cash it in, borrow against
it, and change the beneficiary. A gift of this nature is treated much like a bequest
made through your will. Because you retain the ownership of your asset (the policy),
you will not receive an income tax charitable deduction for this future gift or for
your premium payments during your lifetime. The policy's proceeds will be included in
your gross estate,and your estate can take an estate tax charitable deduction.
Making a Gift of Your Policy
You may wish to transfer ownership of a policy to the Zoo, or purchase a new policy
with the charity as owner and beneficiary. If you make a charity the owner and beneficiary
of a policy, you are entitled to certain tax advantages.
Wealth Replacement Using Life Insurance
You may wish to transfer ownership of a policy to the Zoo, or purchase a new policy with the
charity as owner and beneficiary. If you make a charity the owner and beneficiary of a policy,
you are entitled to certain tax advantages.
A donor may make a current gift to charity and receive a charitable tax deduction.
At the same time, the donor may purchase life insurance to replace the donated amount
or perhaps, the amount after estate tax that the beneficiaries would have received. Depending
on the circumstances, the charitable tax savings and any life income resulting from the gift may
defray the cost of the wealth replacement insurance premiums.
Creating a Life Insurance Trust
You may want to set up an Irrevocable Life Insurance Trust (ILIT).
An ILIT removes the life insurance from your estate to help reduce
estate tax while providing other benefits. For example, upon one's death,
the proceeds of the life insurance policy may remain in the trust to provide
income for the surviving spouse, but stays outside of the spouse's estate for
estate tax purposes. Or, the trust could be used to distribute proceeds to children
of a previous marriage. Although ILITs can be expensive and more complicated than
owning life insurance directly, they may be an attractive option in certain situations.
Gifts of Retirement Assets
Another easy way to donate to PAN is by leveraging some or
all of the accumulated earnings from retirement plan contributions.
Retirement plan contributions grow tax-free because their earnings are
not taxed annually. Instead, earnings are taxed when they are withdrawn.
Over time, this allows more dollars to be invested in the plan, which leads
to more growth. Additional savings can occur if the recipient is in a lower tax
bracket when the funds are withdrawn (for example, during retirement) than when
the investments were growing.
Another easy way to donate to PAN is by leveraging some or all of the accumulated
earnings from retirement plan contributions. Retirement plan contributions grow tax-free
because their earnings are not taxed annually. Instead, earnings are taxed when they are
withdrawn. Over time, this allows more dollars to be invested in the plan, which leads to
more growth. Additional savings can occur if the recipient is in a lower tax bracket when
the funds are withdrawn (for example, during retirement) than when the investments were growing.
You should plan carefully when considering retirement fund withdrawals. Not only is there a
potential income tax burden, but if there is a balance in your retirement account at your death,
there may be estate taxes as well. Estimates are that taxes could eat up as much as 70-75% of
retirement assets under certain circumstances.
Using earnings from a qualified retirement plan, however,
is an excellent way to fund bequests. By designating the Detroit
Zoological Society as a beneficiary (it can be a contingent beneficiary
after the death of a spouse - see sample bequest language) funds pass to the
Society free of taxes. It is possible to set up the beneficiary as the recipient
of the entire remaining funds in the account or establish a percentage to fund the
bequest.when the investments were growing.
Corporate & Foundation Support
Corporate and foundation giving provides a base of support
that helps further the partnership between Patient Access Network and
the corporate and private giving sectors across the nation. Support from corporations
and foundations are key to the success of our programs and may be in the form of cash,
grants or property.
Corporate matching gift programs are an increasingly important way for companies to allow
employees to direct a portion of the monies earmarked for charitable contribution. Since
gift matching procedures can vary from company to company,first contact your employers
human resources department, then call us at 202-347-9272 to further discuss ways to give
Other Ways to Give For the Future
We can also work with donors to arrange charitable gift annuities,
charitable lead trusts or charitable remainder trusts. Call the PAN office at
202-347-9272 or email email@example.com
to further discuss other ways to give.