Ways to Give

Gifts of Cash Charitable gifts are most often made in the form of cash and checks.  If you itemize your tax deductions, gifts of cash can serve to eliminate tax on up to 50% of your adjusted gross income.

Gifts of Real Estate If you have owned a home, vacation home, or other property for many years, a charitable gift of that real estate can be the most beneficial.  You may count the full fair market value of real estate as the amount of your charitable contribution, while avoiding all capital gain taxes.  You may also wish to consider a gift of your personal residence, reserving the right to continue to live in the house for life, and, if applicable, the lifetime of your surviving spouse.  Through such an arrangement, you will be entitled to a current income tax deduction for a portion of the fair market value of the property.

Gifts of Stock Gifts of long-term appreciated stock can be one of the most advantageous ways of giving.  If you have owned the stock you choose to give for more than one year, you may deduct the full fair market value of the stock on the date of the gift as a charitable contribution.

Questions and Answers

How do I arrange for my gift of stock?  It is important that you contact us so that we can assist you with transfer instructions. If you own securities in a brokerage account, we can help you set up an electronic transfer of the shares. If you possess actual stock certificates, we can tell you how to sign the certificates over to us and fill out a stock power form.

What are the tax advantages of a gift of stock? Assuming you are giving long-term (owned for twelve months or more) appreciated securities, you will receive a charitable income tax deduction equal to the fair market value of the shares. For common stock this is typically the mean value on the date that we take control of the shares you give. You will pay no capital gains tax. Gifts of stocks are deductible up to 30% of your adjusted gross income the year you make your gift. Any excess amount can be rolled over into the next tax year, for up to 5 additional tax years if you need it.

Will you sell the shares I give you? It is generally our policy to liquidate any donated stock shares very soon after receiving them, so that we can use the cash proceeds for the purpose you designate.

Can I give closely held stock that I own? In many cases yes, and considerable tax benefits can result. However, giving closely held stock is more complicated than giving common stock. We stand ready to assist you with your gift intention. Our prerequisite to giving closely held stock is that the business or the shares have had a recent qualified appraisal. Please contact us so that we can walk you through the process.

Gifts of Retirement Plan Assets (IRA) When you give in this way, you report the funds used to make your gift on your tax return.  But with proper planning you can enjoy a charitable income tax deduction for the same amount as the gift.  Such gifts assure that these funds will never be subject to income or estate tax.

Gifts of Life Insurance If you have a life insurance policy that is no longer needed, consider it as the perfect vehicle for a 2008 year-end charitable gift. To receive a charitable deduction, name St. Joseph Catholic Church or School as the owner and beneficiary of that policy.  If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift.  In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.

Living Trusts A charitable gift annuity is a contract between St. Joseph Catholic Church or School and a person or couple, St. Joseph Catholic Church or School promising to pay a determined amount, quarterly, semi-annually to annuitant for life in exchange for assets transferred to St. Joseph Church or School.

Bequests Did you know the federal estate tax could easily take 37% to 55% of one’s estate at the time of death? We hope you will consider a charitable bequest in your will - to benefit St. Joseph Catholic Church and School while you save estate tax dollars at the same time.  We can be named as a beneficiary in a will in any one of a number of simple ways.  In many cases you can easily add us to your will through a simple amendment called a codicil; thus your entire will does not have to be redrafted.

Matching Gifts You may be employed by a company or corporation that sponsors a "Matching Gift Program". Your contribution to St. Joseph may qualify for a matching gift from your employer thus doubling your original gift.

A Few Reminders

No one publication can tell you everything you need to know about IRS regulations on charitable gift giving or which method would be the most advantageous for your particular situation.  Remember, too, that recent tax law changes add intricacy - as well as opportunity - to your tax planning.  Be sure to check with your accountant, tax attorney, or other tax advisor for additional information on how these general rules apply to your situation.