Each year millions of Americans make gifts in support of charitable purposes of their choice. In today's environment, these gifts are more important than ever in helping fund the work of charitable entities like Goldsboro Ballet. Many have found that time spent considering the best ways to structure their gifts can help them make meaningful contributions while meeting personal planning goals as well.You will discover ways to make gifts to Goldsboro Ballet you may not have thought possible.
- You will learn how to give in ways that can actually 'give back' for a time, providing extra income in retirement years or to help fund educational expenses and other needs.
- You can add meaning to your gift by using it to honor a special friend or loved one.
- You will see how to save money on income, gift, and estate taxes and redirect those amounts for use in ways you choose.
- You will enjoy your giving more, knowing you are supporting charitable interests in ways that allow you to give the most you can at the lowest possible cost.
That's what effective gift planning is all about. We trust the information presented here will help you maximize the potential of your resources through preserving financial security for yourself and your loved ones while funding the organizations and institutions in which you believe.
GIFT PLANNING CALCULATIONS
Please select the type of gift that best describes what you would like to accomplish. If you would like additional information about how any of these giving vehicles can help you accomplish your financial, estate, and charitable planning goals, please contact us.Gifts that Provide You with Income
Charitable Gift Annuity
A charitable gift annuity enables you to transfer cash or marketable securities to the charitable organization issuing the gift annuity in exchange for a current income tax deduction and the organization's promise to make fixed annual payments to you for life. Annuity payments can begin immediately or can be deferred to some future date.
Charitable Remainder Annuity Trust
A charitable remainder annuity trust is a custom designed and individually managed trust that enables you to retain a fixed income for your lifetime or a fixed term of years, claim a current income tax deduction, and make a future gift to charity.
Charitable Remainder Unitrust
A charitable remainder unitrust is a trust that pays you a percentage of the fair market value of the trust assets as revalued annually for a term of years or one or more lives. At the end of the trust term, the remaining principal goes to one or more charities you choose.
Charitable Lead Annuity Trust
A charitable lead annuity trust is a custom designed and individually managed trust that enables you to give a fixed annual amount to charity for either a fixed
term of years or the life of one or more individuals.
Upon conclusion of the measuring term, the trust terminates and, according to the terms of trust instrument, distributes its remaining assets (called the remainder interest) back to you or to one or more individuals that you have specified.
Charitable Lead Unitrust
A charitable lead unitrust is a custom designed and individually managed trust that enables you to give an annual income to charity for a fixed term of years or the
life of one or more individuals. Upon conclusion of the measuring term, the remaining trust asset can revert to you or be transferred to one or more individuals that
Depending on when the trust is established and who receives the remainder interest, you may qualify for a charitable income, gift or estate tax deduction.
Life Estate Agreement
A life estate agreement is an arrangement whereby you transfer title to a personal residence, farm, or yacht to charity while retaining the right to occupy and otherwise enjoy the full use of the property for your choice of a term of years or the lifetime of one or more individuals.
THE CHOICE OF WHAT TO GIVECash: A Popular Gift
We commonly receive gifts in the form of cash, checks, and electronic transfers. Cash gifts can be convenient for many people and are easily recorded through receipts and bank records. Remember that it is important to save all receipts to assure maximum tax savings.
Non-Cash Gifts: Enjoy More Savings
Goldsboro Ballet Foundation supporters may choose to make their charitable gifts in forms other than cash. Popular examples include:
- Securities (stocks, bonds, mutual funds)
- Retirement plan distributions
- Life insurance policies
- Real estate
- Other items of value (jewelry, artwork, collections, antiques, automobiles, etc.)
Giving Property that has Declined in Value
If you have stock or other investment property that is worth less than it cost, you will normally save more in taxes by selling that property and giving the proceeds. You may then be able to claim a capital loss on your tax return. You can also deduct the cash proceeds you give as a charitable gift. The result can be to enjoy tax deductions that actually total more than the current value of the asset while making a meaningful gift.
GIFTS THAT PROVIDE INCOME TO YOU AND OTHERS
Did you know it is possible to give a gift for the eventual benefit of one or more charitable interests while first retaining income for you, your spouse, and/or other loved ones? In fact, you can choose from among a number of ways to give that feature income for life or other period of time you choose.
Through the use of these gift plans it can be possible to make gifts you may have never thought possible as a result of income, gift, and estate tax savings, tax-free asset growth, professional asset management, and other financial and estate planning benefits.
Many have found they can make significant gifts while enhancing their own or their loved ones' financial security. In fact, giving in this way can help a number of goals including:
- Increased spendable income from low-yielding stocks, bonds, or other assets.
- A welcome source of income to help cover expenses in pre-retirement years.
CHARITABLE GIFT ANNUITIES
Charitable gift annuities are very flexible way to make charitable gifts to Goldsboro Ballet, providing a fixed income for life for you and/or others your choose. They are easy to create
and can be funded with gifts of relatively modest amounts.
Here's how a charitable gift annuity works:
- You transfer cash or other assets to a financial insitution that provides gift annuity contracts. This is accomplished through the completion of a simple agreement and can normally be done by mail.
- You will receive fixed payments annually (or more frequently, if desired). The amount of your payment is a percentage of your gift at the time your gift is funded and will not change with interest rate and investment market fluctuations.
- You will be entitled to an immediate charitable income tax deduction for a portion of the amount used to fund your gift annuity.
- A part of each payment is received tax free for a period of time.
- If you would like, you can also choose to name another person (often a spouse, parent, or sibling) to receive payments with you, instead of you, or following your lifetime for the remainder of his or her life.
- The assets used to fund your gift annuity will generally be removed from your estate for probate and tax purposes.
- You make a tax-deductible charitable gift to Goldsboro Ballet equal to a portion of the amount used to fund your gift annuity agreement.
When property such as stock, mutual funds, or other securities that have increased in value is given for a gift annuity, the charitable deduction can be based on the full value of the property, not just its original cost.
In addition, part of the capital gains tax that would be due on a sale of the gift portion can be avoided at the time of the gift, and the rest of the gain reported over the annuitant's life expectancy. The use of appreciated, low-yielding assets to fund a gift annuity can thus be an excellent way to completely bypass capital gains tax at the time of your gift, enjoy a current charitable income tax deduction, and gain the advantage of reporting a portion of each payment at lower, more favorable capital gain tax rates for a number of years.
GIVING THROUGH A WILL, LIVING TRUST, AND OTHER PLANS
To filling an important role in providing for the future security of your family and others, your will or living trust can offer a way to make thoughtful charitable gifts as part of your long-range estate and financial plans. It can be satisfying to know that a portion of your property will be put to good use in the future.
A gift made through a will or living trust can be convenient to arrange. A simple provision or amendment prepared by your attorney at the time you make or update your will or trust is all that is necessary. Gifts included in wills and living trusts are popular because they are flexible, easy to arrange, and may be changed with your life circumstances.
Ways to Give Through Wills and Trusts
- Make a gift of a specific amount. A gift of a particular amount may be designated for general use or to fund a special need.
- Provide for a gift of a particular property. Real estate, stocks, and other items of value are examples of properties that can be used to fund charitable bequests.
There is no limit on amounts deductible from federal gift and estate taxes for charitable gifts made by will or trust, so no tax will be due on assets given in this way. Estate taxes are also imposed by a number of states. Charitable gifts are normally exempt from those taxes as well. To plan a charitable bequest, inform your attorney of your wishes and ask for advice regarding federal and state tax considerations and the best form for your gift.
Options Using Bank and Investment Accounts
Many people have bank and investment accounts that they would like to leave directly to family, friends, Goldsboro Ballet or other charitable interests at the end of their lifetime. This can often be accomplished using a 'pay on death' (P.O.D.) provision for a bank account or a CD or a 'transfer on death' (T.O.D.) provision for certain other investment accounts. Simply ask your bank manager or officer of your financial advisor for the appropriate form. You retain full ownership and access to the funds during your lifetime and the person or charity receives only what is left in the account.
Please contact our organization via e-mail, or telephone regarding the purpose of the gift when the transfer is made. If you have any questions, please contact Peggy Wingate
or Mary Franklin. You are encouraged to leave a voice message or email message if no one answers. Thank you for your support of our organization.
See you at the ballet!