Can Your Generosity Actually Save you Money?

You can save money and still give to CHOC in a couple of ways. You can save taxes by knowing taxfriendly ways of giving, and you can invest in yourself through gifts that produce income to you.

LIFE INCOME GIFTS
Charitable trusts. Various types of charitable trusts provide tax benefits and income to the donor. A trust can be established with a modest gift with additions made later, or you can fund it all at once. You can have immediate income, or the trust can be set up to grow now and only distribute income at a later time, like at retirement.

Gift annuity. A gift annuity is a contract with a charitable organization that agrees to pay you (and another beneficiary, if you wish) a fixed amount annually in return for your contribution. Rates remain fixed and are based on your age when you set up the gift annuity. You also get a charitable deduction for part of your contribution. Note: Charitable gift annuities are not available in all states or from all organizations.

TAX-FAVORED GIFTS
Appreciated securities. Instead of making your gifts in cash, consider using an asset of equivalent value like shares of stock or a mutual fund. If the shares have increased in value since you purchased them, you will have to pay capital gains tax when you sell them. Donate them to a charitable organization and you will avoid the capital gains tax and still receive an income tax deduction.

Depreciated securities. If you have shares of stock that have decreased in value since you purchased them, sell them and record the loss for tax purposes, then give the cash proceeds to a charity and take a deduction. You can carry forward any unused deductions for up to five years.

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