END OF YEAR GIVING OPPORTUNITIES
In addition to helping to provide shelter, warmth and dignity, charitable gifts to ShelterBox USA can provide special tax benefits. As you get ready to make your year-end gift, please keep in mind that you can receive tax and additional economic benefits from gifted assets.
Various methods of funding your gift and the tax benefit of each are:
Gifts of Cash: There is no easier way to garner a charitable deduction and support ShelterBox USA at the same time than by simply writing a check. Make sure your envelope is postmarked by December 31st. If it is, your gift will qualify as a year-end gift even if it is not received by us until the first week of the New Year. If you itemize your tax deductions, gifts of cash may be fully deductible up to 50% of your adjusted gross income.
Gifts of Appreciated Stocks or Bonds: Giving long term (held more than one year) appreciated stocks or bonds avoids the capital gains tax and will enable you to receive an immediate tax deduction based on the full fair market value of the securities on the date of transfer. If you itemize your tax deductions, gifts of appreciated stocks or bonds may be fully deductible up to 30% of your adjusted gross income.
Gifts of Real Estate: If you have owned your home, a vacation home, acreage or a farm for many years, a charitable gift of that real estate can be especially tax advantageous. The property may have also appreciated in value over the years that its sale would result in a sizeable capital gains tax. If given to ShelterBox USA instead, you avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the real estate.
Gifts of Life Insurance: Naming ShelterBox USA as the owner and beneficiary of an established or new life insurance policy usually offers you a tax advantage in the year you make the gift. If the policy has a cash value, take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.
Income Life Gifts: A life income gift allows you to transfer assets now, and yet continue to receive income from the cash, stock or other property contributed. A life income gift can allow you to (1) increase your income for life; (2) receive a generous charitable contribution deduction at year-end; and, (3) if you contribute stock, avoid any capital gains tax on the appreciation. A life income gift is often made through a trust arrangement called a "unitrust" or an "annuity trust." With a unitrust, you and your beneficiary receive annually a fixed percentage of the fair market value of the assets in the trust year. The income received will vary from year to year, based upon how the trust's investments perform. With an annuity trust, you and your beneficiary receive a fixed amount from the trust each year. This amount is agreed upon when you create the trust; it stays constant, no matter what happens with the stock market or interest rates.
Bequests: While you're considering your end of year tax savings, this may also be a good time to consider long-term tax savings. The federal estate tax can still take approximately 50% of one's estate at the time of death. ShelterBox USA hopes you will consider a charitable bequest in your will to benefit us while you save estate tax dollars at the same time.
ShelterBox USA would be pleased to provide you, your attorney, your accountant or your tax advisor with additional information and assistance. For more information about these or other gift options, please contact Emily Sperling at 941-907-6036 or esperling@shelterboxusa.org.
