Gifts
of
Cash
These are an outright gift of cash by a donor, for which the
donor receives
an income tax deduction as prescribed by current law. Pledging your
gift over a
three-year to five-year period may allow you to make a more substantial
gift
while affording you the opportunity to adjust the timing and amount of
each
payment to achieve the most beneficial tax treatment.
Gifts
of
Appreciated Publicly Traded Securities
This includes a gift of stocks or bonds, which are (or will
be) readily
marketable. The deduction for outright gifts of appreciated long-term
securities (held more than 12 months) is equal to the fair market value
of the
securities on the date the donor relinquishes control of the assets to
the
campaign office, and none of the appreciation is taxable for capital
gains
purposes. Caution: do not sell the stock; you must transfer it to
achieve the
most advantageous tax treatment!
Gifts
of
Closely Held Stock
A gift of stock of a private corporation. The donor may avoid
capital gains
on appreciation of closely held stock, while attaining a tax deduction
based on
the stock’s fair market value. As with publicly traded stock,
the donor may
obtain an immediate tax deduction up to 30% of the adjusted gross
income. If
the gift exceeds 30% of adjusted gross income, the remainder of the
deduction
generally can be carried over for up to five years.
Bequest/Living
Trust
A gift of cash, securities, or real property, made upon the
donor’s death,
through provisions in his/her will or living trust. The gift is not
included in
the estate and is exempt from estate taxes.
Charitable
Remainder Trust
An irrevocable transfer of assets to a trust, naming West
Central Iowa
Healthcare Foundation as the ultimate beneficiary. The donor receives
annually
an income of a set amount or a fixed percentage, based on the wishes of
the
donor and the trust’s value each year. A donor generally
receives an immediate
tax deduction and may add to the principal of a Charitable Remainder
Trust in
future years. If the donated assets consist of appreciated securities,
capital
gains taxes also may be avoided.
Charitable
Gift Annuity
An irrevocable gift placed in trust in exchange for a
guaranteed fixed
income for life, which is calculated to take account of both the size
of the
gift and the donor’s age at the time of the gift. Upon the
donor’s death, the
assets of the trust are passed to the West Central Iowa Healthcare
Foundation.
A current charitable deduction is available based on the IRS annuity
tables.
Here, too, if the donated assets consist of appreciated securities,
capital
gains may be avoided.
Deferred
Income Buildup Plans
This is plan wherein designation of the West Central Iowa
Healthcare
Foundation as the beneficiary of the donor’s qualified
pension plan, IRA,
Keogh, commercial deferred annuities, or employee stock option plans.
This
allows the donor the use of the assets during the donor’s
lifetime, while
providing the donor with the opportunity to make a large future gift
and reducing
the donor’s taxable estate.
Charitable
Lead Trust
An income producing asset placed in a trust, the income of
which is
contributed to the West Central Iowa Healthcare Foundation for a
designated
period of time, after which the trusted asset is returned to the donor
or other
beneficiaries named by the donor. The donor may gain immediate tax
advantages
or may reduce gift or estate taxes when the assets are passed to
children or
grandchildren.
Gifts
of
Real Estate
This includes almost any type of real property from personal
or vacation
homes and commercial buildings to farms or ranches and even undeveloped
lots.
The property may be donated outright; serve as the corpus of a trust
arrangement; or if it is the donor’s personal residence, the
donor and/or
spouse may gift the property with the right of lifetime residency. An
immediate
tax deduction is available and capital gains taxes may be avoided.
Acceptance
of real estate gifts is at the discretion of the West Central Iowa
Healthcare
Foundation Board of Directors.
Gifts
of
Tangible Property
Many types of new and used equipment can be considered gifts
of tangible
property when the West Central Iowa Healthcare Foundation uses a
donated asset,
such as a computer system. The donor is entitled to a charitable
deduction
equal to the fair market value of the asset at the time of the gift. If
the
donated asset is not used by the West Central Iowa Healthcare
Foundation, the
charitable deduction is set at your cost basis in the property.
Acceptance of
tangible property gifts is at the discretion of the West Central Iowa
Healthcare Foundation Executive Director and/or the West Central Iowa
Healthcare
Foundation Executive Committee.
Gifts
of
Life Insurance
This would be the designation of the West Central Iowa
Healthcare
Foundation as the owner and beneficiary of a policy. For a new policy,
this
allows the donor to classify the regular premium payments as charitable
tax-deductible contributions. For existing policies, particularly those
a donor
no longer needs, a donor can generally deduct the entire replacement
value of
the policy plus any premium payments that the donor subsequently makes.
If the
policy is not completely paid up, its approximate cash value plus
future
premium payments are usually fully deductible.
Stock
Options
Executives and other recipients of employee stock options can
now take
advantage of a convenient way of making a gift to the West Central Iowa
Healthcare Foundation. Through cashless options, you can now make a
contribution in one simple transaction with no market risk. The West
Central
Iowa Healthcare Foundation can take care of the transaction for you
through an
independent financial services firm. You are entitled to a tax
write-off on the
difference between the market value of the stock and the option
exercise costs.
West Central Iowa Healthcare Foundation will sell the shares that you
contribute and pay your company for the cost of the shares. This is a
win/win
situation for both the West Central Iowa Healthcare Foundation and you
and a
convenient and economical way to assist us in reaching our goals.
Gifts of grain or livestock—With
a gift of unsold commodities of grain and/or livestock, you could make
a significant investment in the future of healthcare and still reduce
your income tax.
Gifts of depreciated farm machinery—With a gift of depreciated farm machinery, farmers can avoid paying income taxes on ordinary income from the restored appreciation, and if the machinery has a remaining cost basis, the donor can generally receive a charitable deduction for the amount.
This information is provided for educational purposes only. We urge you to consult your attorney, accountant, or financial advisor to determine the most advantageous form of giving that fits your particular tax and financial situation.
