Gifts of Appreciated Securities
A donation in the form of long-term appreciated stock or securities provides the donor with two important tax advantages. First, you are entitled to a charitable income tax deduction based on the fair market value of the stocks at the time of the donation, provided you have owned them for a year or longer. Additionally, you avoid any potential tax on the capital gains. For more information on making a gift of stock please contact David Maher at 617-876-4210 or dmaher@helpfamilies.org.
Charitable Gift Annuity
In exchange for an irrevocable donation of cash and/or securities, CFCS is able to provide fixed income payments to the donor for up to two lifetimes. The gift will provide an immediate charitable income tax deduction, and in most cases, a portion of the payments will be tax-free. The annuity rate is determined by the age of the annuitant(s) at the time the gift is made.
Deferred Charitable Gift Annuity
Like the charitable gift annuity, the donor receives an immediate income tax deduction for the gift. Later, (usually retirement), the donor begins receiving a fixed income from CFCS. Because the principal compounds between date of the gift and first date of payment, the income stream can be significant.
Life Insurance Policies
If CFCS is named as the beneficiary and owner of a life insurance policy, the donor receives an immediate charitable income tax deduction. If the policy is not paid up, this tax deduction is approximately the policy’s present cash surrender value. If the donor chooses to continue paying the premiums, he or she will receive a charitable deduction(s) for the amount paid. The full face value of the policy is removed from the donor’s taxable estate.
Charitable Remainder Unitrust
A donor irrevocably transfers cash and/or securities to a trustee (often CFCS itself) who pays the donor (or other individual) income for life or for an agreed-upon term. The amount to the donor is based on a percentage of the trust principal, recalculated each year, according to any increase in the value of the trust’s assets. When the trust expires, the assets become the property of CFCS.
Charitable Remainder Annuity Trust
The donor receives a fixed income from the gift for the rest of his or her life. The payment to the donor is determined by the initial value of the trust’s assets. More than one person may receive income and the principal becomes the property of CFCS after the last beneficiary dies.
Real Estate
There are a variety of ways to make a gift of real estate. Donor’s may contribute real estate outright or transfer it to CFCS at a reduced sale. A donor can use real estate to fund a gift annuity or a net income unitrust, thus converting a non-income producing asset that is presumably highly-appreciated into a life-income arrangement with significant tax benefits. Finally, a donor may make a gift of his or her residence to CFCS while retaining the right to live in the residence for the rest of his or her life. The donor receives a tax deduction at the time of the gift and when the donor passes the property transfers to CFCS.
For more information on how to make a meaningful and lasting gift to Cambridge Family & Children’s Service like those mentioned above, please contact David Maher, Director of Development, at 617-876-4210 or dmaher@helpfamilies.org.