To make it easier to support the Faith in Our Future campaign, many donors are considering tax-wise ways of giving. You may consider a longer term, five-year pledge payable not only from income, but also from appreciated assets in ways beneficial to your tax situation.
You may take up to five years to fulfill your pledge. So, if you felt capable of giving $10,000 to the campaign this year, you could reasonably consider a total gift of $50,000 over five years. Also, multiple year pledges do not need to be paid in equal installments. You may wish to delay or possibly stagger your gift around your financial situation.
You may authorize automatic deduction from a credit card, bank account or (for IC employees) payroll deduction.
Tax laws make it advantageous to give assets that have increased in value since their purchase. You can donate stocks, bonds, mutual funds and real property that you have held for twelve months or longer and avoid paying capital gains tax on their appreciated value.
For example: If you bought 100 shares of XYZ stock at $10 per share and it now trades at $50 per share, you can make a contribution with a value of $5,000 but which cost you only $1,000. You may deduct the full $5,000 from your taxes and avoid any capital gains tax on the $4000 appreciated value. For additional details on such donations, please check with your accountant.
In this creative way to make a gift that benefits you as well as IC, you put assets into a trust for some number of years, and income is donated tax free to IC. At the end of the term, remaining assets have appreciated tax-free and then pass to a designated family member without estate tax or appreciation tax.
Perhaps you have a paid-up insurance policy purchased years ago that has outlived the original purpose of insuring the family in the event of an untimely death, covering a mortgage, etc. If you donated your policy to IC, you would be entitled to an immediate charitable deduction for the replacement value of the policy.
Recent rulings have created a favorable charitable climate for donors who own closely held stock. You can make such a gift to IC and take a charitable deduction for the fair market value. When IC liquidates the stock by selling the stock back to the company, it receives cash, and the company regains control of the stock.
Please contact June LaPorta in the Advancement Office if you are interested in giving an in-kind donation.
Perhaps you can take advantage of one or more of these creative ways to stretch your pledge. Please feel free to contact IC if you have any questions. As in all complex transactions, interested donors should consult with their legal and tax advisors to determine the best course of action before finalizing such gifts.