You can instruct the insurance company to pay the dividends directly to the Haven of Rest Rescue Mission of Bristol, Inc. Many life insurance policies pay dividends. Or, if you wish to designate that your gift be placed in the Permanent Endowment Fund of the Mission and kept in perpetuity, only the investment or interest income will be used for the Mission needs or as you may designate. Policy proceeds can be paid to the general fund of the Mission. Life insurance pays in a lump sum, making it particularly valuable for gift purposes. The Mission receives the death proceeds tax-free. If the Mission is the owner and beneficiary, the premium becomes a current tax-deductible gift. The Mission uses the gift to purchase an insurance policy on your life. You can create a sizable gift by paying pennies of premium for the dollars ultimately received, so life insurance policies make excellent and practical gifts to the Mission. You are able to make a significant gift with no out-of-pocket expense. If the policy has outgrown its primary purpose (usually to provide for a growing family),you may find such a policy is an excellent way to satisfy your charitable giving desires. Most paid up policies are older and in smaller amounts. Please consider the following possibilities: Sometimes the insurance is the gift itself, In other cases, insurance makes the gift possible. Life insurance offers a variety of ways to make significant gifts to this mission. Invest in your community by investing in its future! Help us serve the homeless, hopeless, and hungry, of the Mountain Empire Region. Unless the donor indicates otherwise, the non-profit presumes the total gift is for general budget. This is a VERY EFFICIENT way of donating money to this non-profit. The donor gets the deduction, the non-profit gets the stock, and when the non-profit sells it they do not pay tax. The tax advantage comes when the donor gives the shares to the non-profit. If the donor exceeds this, they can carry over the remainder of the contribution to subsequent years.įor this to work, the donor must NOT sell the stock and donate the proceeds, Otherwise, that would trigger a tax event for the donor on their gain. Where donors have held the stock for long enough to have substantial gain, the advantage is essentially a double-tax deduction! Basically, this allows a donor to give more money for less pain than if they sold the stock and donated the after-tax proceeds.Ĭharitable deductions for gifts of stock and other appreciated property may be utilized up to 30% of a person's adjusted gross income in the year of the gift. STOCKS - When someone donates stock shares with long-term gains (currently defined as 12 months or more), the donor receives a tax deduction for the full market value of the shares as of the “gift date”, and DOES NOT DECLARE the long-term CAPITAL GAIN AS INCOME!
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