Assets to Give
Cash is a simple 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.
Retirement Fund Assets
Retirement funds may be taxed at ordinary income tax rates as they pass to non-spousal heirs, so making a charitable gift is an excellent way 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.
Do so by asking your plan administrator for a Change of Beneficiary form. You can make a gift of a fixed amount or a percentage 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.
Benefits of making a retirement plan gift:
- You avoid any income taxes to be paid by 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 wise to have your bequests to charity taken out of your traditional IRA, as these gifts will not be taxed.
Make a gift of life insurance by:
- Transferring ownership of a paid-up policy and naming the First Pres Foundation as the beneficiary.
- Naming the First Pres Foundation as a beneficiary of all or a portion of an existing policy for which you are the owner.
- Purchasing a new policy and naming the First Pres Foundation as the owner and beneficiary. Then making an annual tax-deductible gift to the Foundation for the premium payment.
- Transferring ownership of a policy that is not fully paid-up with the assurance that you will make the necessary contributions to cover the premium payments.
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 in the policy or for gifts you make for premium payments for a policy that the First Pres Foundation owns.
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 could 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 also be transferred to a Charitable Remainder Unitrust and provide you an income for life.
A gift of appreciated securities (held for at least one year plus one 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 stock, you avoid the capital gains tax and you receive an income tax deduction for the full value of the stock.
Contact Derrick Jeffers, Director of Finance, at 719-884-6164 or firstname.lastname@example.org regarding stock gifts. He will need to know:
- your name
- the identity of the stock
- the number of shares
- the designation for the use of the gift at First Pres.
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, 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 it 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 Derrick Jeffers 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.