First Pres Foundation
219 E. Bijou St.
Colorado Springs, CO 80903
A gift of Cash is an easy way for you to make a gift. You will receive a charitable tax deduction that will provide you with savings on this year's tax return.
Why using RETIREMENT FUND ASSETS as a gift is such a good idea
Retirement funds may be taxed at ordinary income tax rates as they pass to non-spousal heirs and so make an excellent charitable gift to avoid the taxes. In addition, most people do not use up all their retirement funds during their lifetime, so if you do not plan to pass your retirement funds to heirs, you can make the First Pres Foundation a beneficiary of your retirement fund.
You can make a gift to the First Pres Foundation using retirement funds by asking your plan administrator for a change of beneficiary form. You can make a gift of a fixed amount or a % of your retirement fund. You will want to indicate on your beneficiary form how you want the funds to be used in the ministry of First Pres Church
The benefits of making a retirement plan gift are:
- You avoid any income taxes to be paid by your non-spousal heirs at your death.
- You can continue to withdraw funds as you have need during your lifetime.
- You can change the beneficiary if your circumstances change.
A tax-wise hint: It is tax-wise to have your bequests to charity taken out of your traditional IRA as these gifts will not be taxed. It is as easy as filling out a beneficiary form. You may also consult with your attorney and financial advisor on how to coordinate this approach with your will or trust.
John plans to leave $100,000 to the First Pres Foundation from his estate. If John has a traditional IRA it is wise for him to make his gift from the IRA for if his heirs were to receive these same assets they would need to pay ordinary income taxes (up to 35%) on the distributions they receive. There are no taxes to be paid on a distribution to First Pres Foundation.
There are several ways to make a gift of life insurance to the First Pres Foundation:
- You transfer ownership of a paid-up policy naming First Pres as the beneficiary.
- You can name the First Pres Foundation as a beneficiary of all or a portion of an existing policy for which you are the owner.
- You can purchase a new policy naming First Pres Foundation as the owner and beneficiary. You make an annual tax-deductible gift to the Foundation for the premium payment. First Pres Foundation does not assume premium payments.
- You can give an existing policy for which you are continuing to pay the premiums, and name First Pres Foundation as the owner.
- The Foundation can also be named a contingent beneficiary of a policy.
Benefits of a gift of life insurance:
- You can make a significant gift from income rather than using capital assets.
- You receive an income tax deduction for the amount of the cash value that is donated or for premium payments for a policy that First Pres Foundation owns.
- You can contribute generously to the mission of First Pres.
You can deed your home, vacation home, commercial property or investment property to the First Pres Foundation. The church will likely sell the property and the proceeds will be placed in the Foundation. You will determine how the funds will be used in ministry at First Pres. You also have the option of giving a fractional interest in real estate or establishing a life estate which reserves for you the right to live in your home the rest of your life before your home comes to First Pres Foundation.
First Pres Foundation will gratefully review your offer of a gift of real estate and evaluate whether the donation is appropriate for all parties. In order to donate real estate, you must obtain a qualified appraisal which becomes the amount of the permitted income tax deduction.
Questions that affect acceptance of the property:
- Are there any environmental concerns?
- Is there a mortgage on the property?
- Is the property marketable and saleable within a reasonable period of time?
- Are there costs associated with accepting the property?
- Does the property have any liens?
- Do you have plans to continue to use the property?
Benefits of a gift of real estate include:
- You receive an income tax deduction for the fair market value of the property.
- You avoid the potential capital gains taxes that would be incurred upon the sale of appreciated property.
- Real estate can be transferred to a Charitable Remainder Unitrust and provide you an income for life.
- You make a generous commitment to the mission of First Pres.
A gift of appreciated securities (held for at least one year and a day) can be a wise way to make a gift. If you were to sell the stock you would have to pay federal capital gains tax of 15% on the appreciation over the original cost of the stock to you (assumes an income tax bracket of 25% or above) and Colorado capital gains tax of 4.63%. With a gift of the stock you avoid the capital gains tax and you receive an income tax deduction for the full value of the stock.
Mary owns some shares of stock with a current value of $50,000. She paid $20,000 for the stock a number of years ago. If Mary sells the stock she will pay capital gains taxes on the $30,000 of appreciation. The current federal capital gains tax is 15% which would mean a tax of $4,500 and the Colorado capital gains tax is 4.63% which would be an additional tax of $1,389. By making a gift of the stock she avoids the $5,889 in capital gains taxes and she receives a charitable deduction for the full $50,000.
How to make a gift of stock to First Pres
Contact Kathy Achenbach, Director of Financial Services and tell her your plans. She will need to know:
-the identity of the stock
-the number of shares
-the designation for the use of the gift at First Pres.
Kathy can be contacted at: Office phone (719) 884-6164; firstname.lastname@example.org; First Pres Church, 219 E. Bijou St., Colorado Springs, CO 80903.
If you hold the stock in an account ask your broker to make an electronic transfer of the stock to the First Presbyterian Church of Colorado Springs account:
Wells Fargo: Jim Bryant (719) 636-8015
FBO: First Presbyterian Church of Colorado Springs
DTC #: 141
Account #: 28383689
If you hold the certificates for your shares then sign the stock over to First Presbyterian Church of Colorado Springs by either endorsing the back of the certificate or by use of a stock power. Sign your name exactly as your name is written on the certificate. Write the First Pres Church tax identification number on the back of the certificate: 84-0416230. The certificate should be hand delivered to Kathy Achenbach in the Business office or sent by registered mail to her attention.
Stock given to First Pres is sold immediately and the funds are used for the designated purpose.