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Friends of Milwaukee's Rivers
Charitable Methods of Giving
If the donor has stock or real
estate that has increased in value and they have held the stock
or real estate for more than a year, the donor receives a
charitable deduction for the full fair-market value of the gift
and escapes any potential tax on the capital-gain element in the
gifted securities or real estate. Shares need to be transferred
to your organization. Set up an account with a stock brokerage
house. (Note: when considering a gift of property that has gone
down in value, a donor would be better off to sell the property
to realize a deductible loss and then contribute the proceeds to
the nonprofit and obtain a charitable deduction.)
Call Laura Maker (414.287.0207
x28) to arrange the transfer.
Bequest:
Designate the nonprofit as a
beneficiary in your will.
Insurance Policy:
Names the nonprofit as primary
beneficiary of a life-insurance policy.
Endowment:
Restricted gift whose principal
is protected and the income can be spent by the nonprofit.
Life Income Gifts:
the donor transfers Money or property to the trust. The trust
pays
income for life. After the
donor’s death the funds remaining in the trust go to the
designated nonprofit. It offers the donor income, gift tax and
estate tax deductions. Benefits depend on the type of trust
chosen.
Pooled Income Fund
A fund maintained by the charity
or community foundation where are gifts are pooled for
investment services and income is shared proportionately with
the participants. Upon death of the beneficiaries the principal
is distributed to the charity. It is for donors of modest means
to make a charitable gift, receive income for life, and receive
a tax benefit.
Charitable Gift Annuity
A contract between the donor and
charity. The donor transfers property (cash/securities) in
exchange for a fixed dollar amount during the donor or their
designee’s lifetime.
Charitable Remainder Trust
A separate trust agreement
between the donor and a trustee of the donors choosing
(bank/trust co) and usually requires a minimum of $100,000
because fees to manage it are high. Donor can designate several
charities.
Charitable Lead Trust:
Provides an income stream to the
charity with the remainder going to the donor or another person
designated by the donor.
Honor Gifts/Memorial Gifts
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