Contribute to Mayan Families’ future by planning for a special kind of gift. You can create a trust while you are living, include us in your will or donate stock. These are often very efficient ways to also lower your tax liability. Read below different types of planned giving options that are available and contact email@example.com if you need more information.
Bequest: A gift to charity at death.
A bequest is the simplest type of planned gift to make and one of the easiest to implement. Many people want to donate goods to a particular charity but are unable to donate property while they are alive. For example, a donor may have property that is needed during life to cover living expenses or rising health care costs. A donor can retain ownership and use of the property during life and then leave it to a charity at death.
Donors have also left us specific amounts of cash or a fractional amount, percentage or undivided percentage of a particular asset.
Charitable Remainder Trust
This type of trust receives cash or property from a donor, makes payments for a life, lifetimes or term of years and then distributes the remainder to charity. This can be useful if a donor wants to turn appreciated property that produces little or no income into a productive asset without paying capital gains tax on the sale of the property. A donor then contributes the appreciated property to a charitable remainder trust that will sell the property tax free and then make payments for life or a term of years.
Charitable Lead Trust
This can be useful if a donor wants to reduce taxes payable on their estate after they pass away. This is done by donating to charities from the estate until all taxes are reduced. Once this is accomplished, the estate is then transferred to the beneficiaries, who typically will face lower taxes.
This involves a contract between a donor and a charity, whereby the donor transfers cash or property to the charity in exchange for a partial tax deduction and a lifetime stream of annual income from the charity. When the donor dies, the charity keeps the gift. A portion of each gift annuity is tax-free.
Life Estate Reserved Gift
This is where a charity accepts a gift of property and the donor retains the right to use of the properly for his or her lifetime.
Donate Appreciated Stock
If you are looking to sell stock that you have owned for more than one year and it has appreciated since you purchased it, you can save on the capital gains tax by donating the stock to Mayan Families. This will also entitle you to an income tax deduction for the full current market value of your gift.
You can also deduct stock donations equal to an amount of up to 30 percent of your adjusted gross income and any excess deductible amount can be carried over for as long as 5 years to offset income or capital gains taxes.
Another option for using your "long-term" appreciated stock is to donate the stock to Mayan Families and either repurchase the shares on the market or diversify your assets by purchasing securities of an equal value in different sectors and industries. Not only will you be able to claim a charitable deduction for the fair market value of your gift, you will also minimize any capital gains tax when you eventually sell the replacement shares.
Donate Depreciated Stock
If you took a loss in the stock market, you can still help Mayan Families while offsetting your taxable income! By selling stock at a loss and then making a donation of the same amount of money that the stock was sold for, you will be able to do the following:
- Claim a charitable deduction for the gift.
- Deduct the stock's decrease in value from your other income, thereby reducing the taxes you pay
- Deduct up to $3,000 ($1,500 if you are married filing separately), but any amount of loss above that can be carried over to future years until completely deducted
If you would like more detailed information about any aspect of Planned Giving options with Mayan Families please contact us at firstname.lastname@example.org
Charitable Lead Trusts or Charitable Remainder Trusts
In the case of charities you'd like to benefit, charitable lead or charitable remainder trusts may be considered to create tax benefits today while also benefiting the organization. A charitable lead trust donates a portion of the trust's income to charities today, leaving the remainder to your specific beneficiaries. A charitable remainder trust provides you income throughout your lifetime, leaving the remainder to a charity upon your death.
Important note: The information above is intended as an introductory outline of planned giving methods available to US citizens and we do not provide financial, tax, or legal advice. Prior to making any financial commitment we recommend that you consult with your independent financial, tax, and legal advisor for specific help with your particular situation.
For commonly asked questions around planned giving option please also visit our FAQ page.