| Planned giving is as easy as
1-2-3. We'd like
to make it even easier with this information on some
of the best ways to both give and save.
Gifts of Cash
If you itemize, you can lower your income
taxes simply by writing us a check. Gifts of cash
are fully
deductible - up to a maximum of 50% of your adjusted
gross income. For example, if your adjusted gross
income for this year is $50,000, up to $25,000 of
charitable gifts may be deducted this year. Any excess
can generally be carried forward and deducted over
as many as five subsequent years. Some employers
will match your charitable gifts, meaning your gifts
are worth even more. If your company or firm has
a matching gift program, simply fill out the form
along with your check.
*Click
here
for a printable version (PDF).
Gifts of Stock
If you own stock, it is often more
tax-wise to contribute stock than cash. This is because
a gift of appreciated
stock generally offers a two-fold tax savings. First,
you avoid paying any capital gains tax on the increase
in value of the stock. Second, you receive an income
tax deduction for the full fair market value of the
stock at the time of the gift. Make sure you have
owned the stock for a "long term" period
of time (this generally means that you have held
the stock for more than one year) to qualify for
these significant tax advantages. Gifts of appreciated
stock are fully deductible - up to a maximum of 30%
of your adjusted gross income. For example, if your
adjusted gross income for the year is $100,00, up
to $30,000 of long term appreciated stock and other
property gifts may generally be deducted this year.
Any excess can generally be carried forward and deducted
over as many as five subsequent years.
Charitable Lead Trusts
Under this arrangement, you
transfer assets to a trustee who makes payments
to Meals on Wheels PLUS
for a specified number of years, after which time
the assets are transferred to your heirs. The charitable
lead trust allows you to pass assets on to your children
and grandchildren either completely free or substantially
free of all estate and gift taxes! It can make good
sense for anyone in the 50% estate and gift tax bracket.
Life Income Gifts
Increase your income by receiving
a charitable contribution deduction and avoid capital
gains taxes.
If you own stock which is paying you low dividends,
a "life income "gift may
be appropriate. You could transfer the stock
to us and establish a "charitable remainder unitrust" or "charitable remainder annuity
trust" that would provide you with a 5% or greater
annual return. This income would be paid to you and/or
a loved one for life, after which the assets would
be distributed outright to Meals on Wheels PLUS.
Through such an arrangement, you would increase
your income and make a meaningful
contribution at the same time. For example: Suppose
Mrs. Jones, age 70, purchased some stock many years
ago for $10,000 and that the stock is now worth $100,000.
But, she receives only $2,000 per year in dividends,
or a 2% yield. By transferring the stock to a charitable
remainder trust and specifying that she wanted a
6% return for life, she could:
- Triple her annual income (from $2,000 to $6,000)
Avoid the capital gains taxes she would otherwise
incur on a stock sale
Be entitled to a charitable contribution deduction
of approximately $55,000. (The amount of the deduction
depends upon the age of the donor, the rate of return
specified in the trust, the size of the gift, and
other factors.)
Gifts of Real Estate
A gift of real estate can also
be tax-wise. A residence, vacation home, farm,
acreage or vacant lot may have
so appreciated in value through the years that its
sale would mean a sizeable capital gains tax. By
making a gift of that property instead, you would
avoid the capital gains tax, and at the same time,
receive a charitable deduction for the full fair
market value of the property. It is also possible
to make a gift of your home, farm or vacation home
so that you or your spouse can continue to use it
for your lifetimes - while you receive a current
income tax deduction.
Gifts of Life Insurance
A gift of life insurance can
provide a significant charitable deduction. You
could purchase a new policy
or donate a policy that you currently own but no
longer need. To receive a deduction, designate us
as both the owner and beneficiary of the life insurance
policy.
Bequests
Meals on Wheels can be named as beneficiary in your will
in an outright gift, as either a designated dollar
amount
or percentage of your estate. We could also be named
as a remainder beneficiary to receive funds only
after specific sums have been paid to individual
beneficiaries. You
can easily attach an amendment
to your will then your will, will not have to be redrafted.
The Importance of Acting Today For Tomorrow
Financial planners agree it is the failure
to take action, not the absence of opportunity, that
is the
major threat to achieving financial
objectives. It takes a lifetime to build an estate.
Meals on Wheels PLUS believes it's wise to plan for today so that your
estate may be preserved for tomorrow. Planning
today has never been more important. With recent
tax law changes even those with an estate plan must
review and update it so that their objectives will
be met. For example, a new will is needed to take
full advantage of the latest federal estate tax provision to avoid the state from making the critical decisions
about distribution of your estate. This can be one
of life's most satisfying and rewarding experiences.
Help us confront the challenges that lay ahead for future success by the generosity
of our patrons. Through careful estate planning, you help secure the future - for yourself,
for your family and heirs, and for programs in which
you believe.
For More Information
We cannot tell you everything you need
to know about planned giving and which method would
be the most
advantageous for your particular financial and estate
planning situation. Check with your attorney, accountant
or other tax advisor for additional information on
how these general rules apply to your situation.
Not all of the available methods of giving could
be included here, and not all of the tax ramifications
of each form of gift could be discussed. We appreciate
your interest and support, and would be pleased to
provide you with additional information on the advantages
of planned giving. If you would like more
information, please e-mail, call or write.
For more information please contact us at:
811 23rd Avenue East
Bradenton, FL 34208
PHONE: (941) 747-4655
FAX: (941) 747-9871
Email:
info@mealsonwheelsplus.org
* Adobe Acrobat Reader
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program available from the
Adobe web site.
Follow the download directions on the Adobe web site
to get your copy of Adobe Acrobat Reader.
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2004. All rights reserved.