Tips on Asset-Based Giving to the NKF of NC
Tips on Giving: A Current Will or Trust
   
For many people, charitable giving is motivated by humanitarian concern, as a way to leave a legacy to a favorite charity or institution. In addition, charitable gifts offer donors the option of reducing income taxes in the year the donation is made or deferring the tax benefits until later.

Of course, annual cash gifts continue to represent a traditional way of giving to non-profit organizations, but asset-based gifts are worth considering because of their advantages to the donor as well as the charity.

Gifts of stocks, bonds and cash are generally called immediate donations. You could also consider including a not-for-profit organization in your will, and your heirs will be able to take advantage of estate-tax savings.

If you're considering donating some stock to a charity like the National Kidney Foundation of Northern California, there are a number of benefits. Let's assume you invested $5,000 five years ago in a stock or bond that's now worth $10,000. If you sell it, you'll have to pay a commission, plus tax on the $5,000 gain. At the 20% capital gains rate, that will be a tax bite of $1,000—reducing the effective value of your security to $9,000 available to give to charity.

But if instead you transfer the security to the organization directly, the charity gets the full $10,000 value. You get to deduct the full $10,000 on your tax return. You have no capital gain, so there's no tax to pay. And you haven't sold it, so there's no commission.

It's important to point out that as long as you're still alive, gifts of life-insurance, retirement benefits or similar donations can be revoked if the beneficiary designation is changed. Since these revocable gifts are a promise to be fulfilled at a later date, they will appeal mostly to donors who want to plan a major gift immediately, but also want the option of retrieving the assets if an emergency occurs. The disadvantage of for these kinds of gifts is that they don't qualify for charitable income tax deductions in the year the donation is made.

Other deferred gifts that provide tax benefits to the donor include charitable remainder and other trust vehicles. Of course, if you're considering a donation such as this to the NKF of NC or another not-for-profit organization, it's smart to discuss the matter with your financial advisor and tax and legal advisors.

If you would like to donate or have any questions about stock or other asset contributions please contact Heather Haggmark at (415) 543-3303 x 105 or heather@kidneynca.org.

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Have you put off making or updating your will or living trust? Maybe you think it costs too much to do it. Perhaps you are having a hard time deciding how to leave your money, or you may simply have an aversion to confronting your mortality.

Drafting these documents may seem like a daunting task as first, until you realize all the good that comes from having them.

A bequest from either a will or living trust lets you pass any amount you wish to us free of estate tax. You can give cash, specific property or a percentage of your estate, with restrictions or without.

To make sure your will accomplishes your goals according to your wishes, we recommend that you obtain the professional counsel of an attorney who specializes in estate planning.

As the Foundation confronts the challenges of the future, we know that the generosity of those who assist us will make all the difference in our success. Thank you for your support and contact Heather Haggmark with any questions at (415)543-3303 x105 or heather@kidneynca.org.