Outright gifts can include cash, securities, and life insurance.
A cash gift is the simplest way to establish a named fund or add to an existing fund. Cash gifts are fully deductible for up to 50% of the donor's adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.
Gifts of appreciated securities (bonds and stock, including stock in closely held companies) also may be used to establish a fund or add to an existing fund. Such gifts often provide important tax advantages, as the full fair market value is deductible as a charitable contribution for up to 30% of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years.
The added benefit of giving appreciated securities is avoiding capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as publicly traded stock.
Life insurance policies can also be used as charitable gifts. If you name CACF as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution.
If you have any questions about outright gifts, please contact us for more information.