Gift Planning - Other Ways to Give

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Gift of Appreciated Securities

A Tax-Efficient Approach to Leverage Appreciated Assets
Securities and mutual funds that have appreciated in value over one year are commonly used assets for supporting Faith in Action. Contributing appreciated securities or mutual funds not only enables you to champion our cause but also offers significant advantages for yourself.

By donating appreciated securities or mutual funds to advance our mission, you can potentially minimize or entirely eliminate federal capital gains taxes associated with the transfer. Moreover, you may qualify for a federal income tax charitable deduction based on the fair market value of the securities at the time of donation.

These assets are typically utilized to support our initiatives in the following ways:

Outright Gift: Donating securities directly to Faith in Action provides you with comparable income tax benefits as writing a check. However, it additionally eliminates capital gains taxes on the transfer, which can be as high as 20%.

Transfer on Death (TOD) Account: Establishing a TOD designation on your brokerage or investment account ensures that the account assets are distributed to designated individuals or charities, including Faith in Action, after your lifetime.

*Please note that transfer on death accounts are subject to state laws. For guidance on this type of gift, we recommend consulting with your bank representative or investment advisor.

 

 

 

Real Estate

Transforming Realty to Gift Reality
Want to make a gift to Faith in Action without touching your bank account? Consider giving us real estate, such as a personal residence, vacation home, farm, commercial property, or undeveloped land. Such a generous gift helps us continue our work for years to come. And a gift of real estate also helps you. When you give Faith in Action appreciated property you have held longer than one year, you qualify for a federal income tax charitable deduction, and you may minimize or eliminate capital gains tax. And you no longer have to deal with that property’s maintenance costs, property taxes, or insurance.

Another benefit: You don’t have to hassle with selling the real estate. You can deed the property directly to Faith in Action or ask your attorney to add a few sentences in your will or trust agreement.

Ways to Give Real Estate
You can give real estate to Faith in Action in the following ways:

  • An outright gift
  • A gift in your will or living trust
  • A donor advised fund
  • A deferred charitable gift annuity
  • A retained life estate
  • A charitable remainder unitrust
  • A bargain sale
  • A charitable lead trust
  • A memorial or endowed gift

Donor Advised Fund

Simplify Your Philanthropy
A donor-advised fund (DAF), akin to a charitable savings account, offers you the flexibility to suggest the amount and frequency of donations to Faith in Action and other eligible charities. You can propose a one-time grant or regular contributions to make an immediate impact or utilize the fund to facilitate future charitable endeavors.

Additionally, you have the opportunity to establish a lasting legacy by designating Faith in Action as the beneficiary of the entire DAF or a portion thereof. By allocating a percentage, you can initiate a family tradition of charitable giving, naming your loved ones as successors to continue recommending grants to charitable causes. Simply reach out to your fund administrator for a beneficiary designation form.

 

Memorials and Tribute Gifts

Honoring a Loved One with a Meaningful Gift
If you have a loved one who has been touched by Faith in Action, creating a memorial or tribute gift is a heartfelt way to commemorate their memory, while also contributing to our cause. Your memorial or tribute donation will perpetuate the legacy of your loved one and make a tangible impact.

Illustrative Scenario
After John’s aunt passed away, he was determined to establish a lasting legacy in her honor. Recollecting her admiration for Faith in Action and their dedication to older adults in our community, John knew he wanted to do something significant.

John opted to make a gift to Faith in Action in his aunt’s name, utilizing appreciated securities. This decision not only ensures that his aunt’s legacy endures at Faith in Action through the donation but also enables John to qualify for a federal income tax charitable deduction while eliminating capital gains tax on the securities.

Endowed Gifts

Your Gift: A Lasting Legacy
An endowment contribution to Faith in Action today paints a brighter future for our organization. By donating to an endowment, you provide a gift with both immediate and enduring benefits.

Endowment gifts are strategically invested. A fraction of the annual income generated from these investments is allocated to address pressing needs at Faith in Action. The remaining funds are reinvested, ensuring continuous and indefinite support.

Illustrative Scenario
Charlie and Susan, dedicated supporters of Faith in Action, have two key objectives: Firstly, they aim to ensure sustained backing for the organization beyond their lifetime. Secondly, they aspire to establish a perpetual legacy in honor of Charlie’s parents who were served by Faith in Action.

To realize these goals, Charlie and Susan contribute $25,000 to Faith in Action, which is then invested. Each year, a portion of the income generated from these investments will be utilized to further our mission, paying homage to Charlie’s parents. Additionally, Charlie and Susan qualify for a federal income tax charitable deduction on their taxes.

Charitable Lead Trust

Safeguard Your Wealth
If you seek to make an immediate impact at Faith in Action while ensuring provisions for your family’s future, consider establishing a charitable lead trust. This entails transferring cash or other assets to a trust that disburses payments to Faith in Action for a designated period. Upon the trust’s expiration, the remaining assets are passed on to your chosen beneficiaries, such as your family.

Charitable lead trusts make payments to Faith in Action in two primary ways:

Charitable Lead Annuity Trust: This trust structure provides a fixed annual payment to Faith in Action and is particularly advantageous when interest rates are low.

Charitable Lead Unitrust: In this arrangement, the trust disburses a variable annual payment to Faith in Action based on the trust’s asset value. If the trust assets appreciate, the payments to Faith in Action increase accordingly.