Economic conditions in recent months have made it more important than ever to make careful choices about how to spend, save and give our resources. That is why we especially appreciate those who have chosen to support Friends Village.
You may find that time spent determining the best ways to give can help you stretch your charitable dollars. By carefully considering the form and timing of your gifts, you may discover you can make gifts you may not have thought possible.
Read on for ideas that may be beneficial to you and your loved ones as you consider your charitable giving plans.
Deciding what to give
CASH. Charitable gifts are most often made in the form of cash, checks and electronic transfers. When you itemize your tax deductions, gifts of cash may be used to eliminate federal income tax on up to half of your adjusted gross income (AGI). You may enjoy state income tax savings as well.
Please make checks payable to Friends Village at Woodstown. If you are making a gift to a specific fund, please include the fund name in the memo line (e.g., Residents Benevolence Fund).
You can also make a donation online by clicking here.
HONOR AND MEMORIAL GIFTS. Few gifts are more poignant than those made in someone’s honor. Whether donated in memory of a loved one or honoring a friend, Honor and Memory gifts are laden with love, affection, and admiration felt for that special someone. These gifts allow us to pay tribute to those people who touched our lives and left a lasting impression. Please share the name(s) with us.
SECURITIES. Giving securities (stocks, bonds or mutual fund shares) that are worth more than they cost can bring additional tax savings. Such gifts are generally deductible from income tax at their full current value if they have been owned for longer than one year, and they can be used to offset tax on up to 30% of your AGI.
As an additional benefit, no tax is owed on capital gain that could be due in the event
of a sale.
If you have investments that are worth less than they cost, consider selling them and using the cash proceeds to make a charitable gift. This creates a loss you may be able to deduct from other taxable income as well as a deduction for the amount of the cash contribution. The combined deduction for the gift and the loss may total more than the current value of the investment.
Whether you make a gift in the form of cash or other property, any unused deductions may reduce your taxes in as many as five future years.
Other ways to give
In addition to gifts of cash and securities, there are a number of other options you might wish to consider in today’s environment.
GIFTS FROM RETIREMENT PLANS. Retirement plan assets can be a practical source from which to make gifts. Unlike many other types of investment accounts, amounts withdrawn from retirement accounts can be taxable to you and eventually to your heirs if left to them.
If you are over 70½ and are required to take withdrawals from an IRA or other qualified retirement account, you may want to consider making charitable gifts using all or a portion of your mandatory withdrawal amount. Giving in this way may result in little or no tax impact when you report the amount withdrawn along with an offsetting charitable deduction. Proposed tax legislation would provide additional benefits for gifts made from traditional and Roth IRAs. Check with your financial advisors for the latest opportunities that apply to your situation.
GIFTS FROM OTHER SOURCES. A business, employer, family foundation or donor advised fund may provide other ways to maximize your gift. Many employers match gifts made by current employees and retirees.
A GIFT THROUGH YOUR WILL OR LIVING TRUST. With changes in estate taxes in recent years, many may find they can now leave more to loved ones free of tax. This may also make it possible to give more for charitable purposes, both now and as part of your long-range financial plans. After providing for loved ones, you can leave a legacy and include a charitable gift to Friends Village in one of several ways:
- State a specific amount in your will, e.g., $10,000
- Leave a percentage of your estate, e.g., 25% or
- Leave the residuum of your estate to Friends Village.
GIFTS OF LIFE INSURANCE. If you own life insurance policies that are no longer needed for their original purpose, the cash value of such policies may be a source from which to make gifts that can provide welcome tax savings today and may also result in significant state and/or federal tax savings in the future.
GIFTS THAT PROVIDE INCOME FOR YOU OR OTHERS. There are also a number of ways to make gifts today that provide you or others with increased income, current and future tax savings, and other benefits for your lifetime or other period of time you choose. One of these options is a Charitable Gift Annuity. A charitable gift annuity is a contract (not a "trust"), under which a charity, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals, for their lifetime. (American Council on Gift Annuities)
For more information about Charitable Gift Annuities, visit the Council’s website at http://www.acga-web.org/.
You can make meaningful and cost-effective charitable gifts by carefully planning their timing and the property used to fund them.
We will be pleased to provide more information to you and/or your advisors as you act to develop and complete your plans. For more information contact the Friends Village Development Office at 856-823-0778 or email: email@example.com.
Additional information to help donors think about charitable gift options is available through the Association of Fundraising Professionals website: www.afpnet.org/GivingHeart. Friends Village subscribes to the AFP Donor Bill of Rights.
The official registration and financial information of Friends Village at Woodstown may be obtained from the Attorney General of the State of New Jersey by calling (973) 504-6215. Registration with the Attorney General does not imply endorsement.