Marshall Foundation accepts donations of assets
HUNTINGTON -- Cash is not the only way to fund a charitable gift. In fact, it may not even be the best way for you to support your favorite charity.
If you have assets that are no longer working for you, you may be able to give them to your favorite charity and reap tax or other benefits in the process.
Assets that you may not have considered using to make charitable gifts include highly appreciated stock, life insurance policies, real estate and tangible personal property. Giving capital gains property provides a current tax deduction and eliminates capital gains taxes. Stocks with a low cost-basis or dividends could be the perfect charitable gift.
Life insurance policies that were purchased to cover expenses such as mortgages or education and are no longer needed for their original purpose may be donated to a charity just by making the charity the owner and beneficiary of the policy. A gift of life insurance will also provide a charitable income tax deduction.
Real estate, subject to the charity's gift acceptance policy, may also be donated.
Tangible personal property is any property that can be touched, felt, or moved such as jewelry, furniture, art, etc. While subject to specific tax laws which may allow only a cost basis deduction (what you paid for it), some items, if related to the function of the charity, may offer full deductions. If valued at more than $5,000, the items must be professionally appraised.
Best of all, these gifts may offer a variety of funding opportunities, depending upon the policies of the charity:
A named endowment fund, such as a scholarship fund, remains intact in perpetuity, bearing the name of the donor or serving as a memorial to a loved one. The principal of the fund will remain intact with only the earnings used to support the charity's needs.
A charitable gift annuity provides a future gift to the charity and a lifetime income for the donor(s) at an annuity rate based upon the donor's age. A gift annuity is very simple to establish. The donor makes a gift to a charity and receives a current income tax deduction. In return, the charity provides an income for the lifetime of the donor(s).
Many of these assets may also be used to fund a trust which could be beneficial to you, your heirs, and your selected charity.
Beverly Crabtree is the director of planned giving at The Marshall University Foundation, Inc. You may contact the Foundation at firstname.lastname@example.org.
For advice and assistance in specific cases, the services of your own financial or legal counsel should be obtained.
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