The following list may be helpful as you determine which gift is most appropriate for you. Please consult with a tax advisor regarding current applicable income tax regulations.
Outright Gifts
Following are some of the ways you can make an outright gift:
Cash. Of the gifts made to Jesuits West, most will be paid through cash, check or credit card. Cash is the easiest gift for a donor to make and for the organization to receive. If you itemize your deductions, you may be entitled to an income tax deduction for all contributions in a given year of up to 50 percent of your adjusted gross income with a five-year carry-over period for the excess.
Donor-Advised Funds. Donor-Advised Funds (DAF) are a great way to support Jesuits West and provide good tax incentives for donors. With a DAF, which serves as a charitable savings account, you can recommend how much and how often money is granted to Jesuits West and other qualified charities. You can recommend a grant or recurring grants today to make an immediate impact or use your fund as a tool to plan future charitable gifts. A DAF can be used at Jesuits West for annual gifts but cannot be used to fulfill written pledges.
Stocks and Bonds. Such assets are a great way to give. You may save on capital gains tax and may get a charitable income tax deduction for the full fair market value. You may take the income tax deduction up to 30 percent of your adjusted gross income and still carryforward any excess up to five years.
Real Estate. Over the years, most real estate has appreciated faster than the rate of inflation and, therefore, can offer great potential for a charitable gift. Jesuits West will consider accepting a gift of a home, vacation property, condominium, apartment complex, undeveloped land, or other real estate. Any such properties cannot have loans on them or the loans must be paid before the gift is made.
Tangible Personal Property. Gifts of assets such as, cars, jewelry, and boats are welcomed. You may claim an income tax deduction based on the full market value of the gift, avoid capital gains taxes and eliminate certain costs associated with the transfer of real property—assuming the gift is considered for a related use.
Paid Up Life Insurance. If you own an insurance policy that is no longer needed for its original purpose, you can give it to Jesuits West, which will then become the owner of the policy.
Charitable Lead Trusts. Through a transfer of cash, securities or real estate into a Charitable Lead Trust, Jesuits West will receive income from the trust for a set number of years. The trust principal is returned to the donor or the donor’s designee at the end of the term of the trust.
Matching Gifts. Many corporations demonstrate their support to nonprofit organizations by matching—often dollar for dollar—or multiplying their employees’ gifts up to a set amount. Please note that each company has its own guidelines and policies regarding its matching gifts program. Before pledging your gift, ask whether your employer participates in such a program. Certain restrictions apply to matching gifts. Please consult your company’s personnel office for more information.
Gifts-in-Kind. You may wish to contribute a personal possession of special interest—including equipment or other items—or needed services. To determine the interest of the Province, please contact Rev. Samuel P. Bellino, SJ, Director of Legacy Planning, at (408) 884-1639.
Planned or Deferred Gifts
You may give a substantial asset to Jesuits West and still reap income from the asset to maintain your standard of living through one of the following instruments:
Charitable Remainder Trust. A Charitable Remainder Trust will pay you a lifetime annuity, allow you to avoid immediate capital gains taxes and give you an income tax deduction at the same time. If married, both spouses may be included as income beneficiaries. Funding such a trust with highly appreciated stock will enable you to deduct the fair market value of that stock without having to immediately pay the capital gain tax on its appreciation. Real estate is also a good asset to use, as is cash. You save immediate capital gains taxes on highly appreciated assets such as stocks and real estate that you put into the trust. The amount you will be able to deduct each year will be limited to a percentage of your adjusted gross income. However, you will be able to carry over any excess deduction for up to five additional years. The annuities paid from a Charitable Remainder Trust will be taxable income if the income of the trust would otherwise be taxable. Because the assets go to Jesuits West at your passing, you may want to consider an asset replacement option (sometimes called a “wealth replacement trust”), funded by life insurance and paid for by tax savings and increased income from the trust. At your passing, a properly structured life insurance trust will allow the life insurance proceeds to go to your heirs, free of estate tax and probate expenses.
Gifts from Retirement Funds – IRA and 401(k) Funds. When individuals withdraw funds from their IRA or 401(k) fund(s) during their lifetime, income taxes must be paid. At death, any amount remaining in such plans is potentially subject to two taxes: income and estate taxes. Donors are invited to consider designating Jesuits West as a partial or full beneficiary of their retirement plans.
Other planned gift options, such as a Charitable Gift Annuity or a Charitable Remainder Unitrust are available. To learn more about these and other gift options, please contact Fr. Sam Bellino, SJ, Director of Legacy Planning, at (408) 884-1639.
