Although we are blessed with a seemingly endless summer, June marks the beginning of the season when we relax and kick back a bit, spend more time with family and friends, go to the beach and just live life a little more casually.
However, summertime doesn't mean the living is easy for everyone. There are many among us who are struggling to meet their daily needs. During this economic downturn, the non-profit organizations that serve people in need are in need themselves. Cutbacks in government support have forced budget shortfalls and layoffs just when the number of those seeking help has grown to new highs. Private contributions that are plentiful during the winter holiday months can dry up significantly during the warm months of summer.
This is a critical time for individuals, foundations and businesses to step up to fill this void. Our neighbors need our help. Often donors wait until the end of the year to make their annual charitable gifts, then rush the process without clear direction on where their donations should go or how to best arrange the tax benefits. Why not create a thoughtful charitable gifting plan to fund your favorite charities throughout the year and incorporate the tax benefits into your overall financial planning? Here are a few of the ways you can give.
• Current gifts of cash, personal property or highly appreciated assets such as stock or real estate can be used to help people right away. The value of your contributions can be income-tax deductible and capital gains tax-avoided on the asset sales. You can also use the current tax benefits you receive to increase the size of your gift.
• Donor-advised funds and private foundations provide opportunities for donors to contribute cash or appreciated assets now, take current tax deductions, then make decisions later on which charitable organizations to support. These are excellent opportunities to engage family members in the giving process as you choose the charities together you wish to benefit. Donor-advised funds and private foundations can be established through certain professional advisors, giving you more control of the management and distribution of the assets.
• Life income gifts, charitable trusts and gift annuities, can provide substantial estate and income tax benefits as well as income to you and your family, either now or some time in the future. Older homeowners might want to explore donating a home to a suitable charitable organization now, while remaining in the home and receiving lifetime income.
• Bequests made in your will or living trust, IRA, 401(k) or other retirement plan, annuity or life insurance policy, leave a legacy to your preferred charities upon your demise. Bequests are easy to arrange and your estate can receive a charitable deduction for your gift. Also, significant taxes can be forgiven on certain assets that would otherwise be income taxable to your estate or heirs.
There are many variations of these and other gifting arrangements that can be customized to assure charitable gifts from your heart will benefit your financial and tax situation.
Careful planning is the key to developing a gifting program that maximizes the benefits for yourself, your family, your company and your favorite charitable organizations.
Please consult your professional advisors to determine how you might benefit.
However, summertime doesn't mean the living is easy for everyone. There are many among us who are struggling to meet their daily needs. During this economic downturn, the non-profit organizations that serve people in need are in need themselves. Cutbacks in government support have forced budget shortfalls and layoffs just when the number of those seeking help has grown to new highs. Private contributions that are plentiful during the winter holiday months can dry up significantly during the warm months of summer.
This is a critical time for individuals, foundations and businesses to step up to fill this void. Our neighbors need our help. Often donors wait until the end of the year to make their annual charitable gifts, then rush the process without clear direction on where their donations should go or how to best arrange the tax benefits. Why not create a thoughtful charitable gifting plan to fund your favorite charities throughout the year and incorporate the tax benefits into your overall financial planning? Here are a few of the ways you can give.
• Current gifts of cash, personal property or highly appreciated assets such as stock or real estate can be used to help people right away. The value of your contributions can be income-tax deductible and capital gains tax-avoided on the asset sales. You can also use the current tax benefits you receive to increase the size of your gift.
• Donor-advised funds and private foundations provide opportunities for donors to contribute cash or appreciated assets now, take current tax deductions, then make decisions later on which charitable organizations to support. These are excellent opportunities to engage family members in the giving process as you choose the charities together you wish to benefit. Donor-advised funds and private foundations can be established through certain professional advisors, giving you more control of the management and distribution of the assets.
• Life income gifts, charitable trusts and gift annuities, can provide substantial estate and income tax benefits as well as income to you and your family, either now or some time in the future. Older homeowners might want to explore donating a home to a suitable charitable organization now, while remaining in the home and receiving lifetime income.
• Bequests made in your will or living trust, IRA, 401(k) or other retirement plan, annuity or life insurance policy, leave a legacy to your preferred charities upon your demise. Bequests are easy to arrange and your estate can receive a charitable deduction for your gift. Also, significant taxes can be forgiven on certain assets that would otherwise be income taxable to your estate or heirs.
There are many variations of these and other gifting arrangements that can be customized to assure charitable gifts from your heart will benefit your financial and tax situation.
Careful planning is the key to developing a gifting program that maximizes the benefits for yourself, your family, your company and your favorite charitable organizations.
Please consult your professional advisors to determine how you might benefit.