- What assets can I use to make a gift to the Augustana Foundation?
- What gift plans return income to me?
- What tax deduction will I receive for my gift?
- I want to set up a life insurance policy, name the Foundation as the beneficiary, and retain ownership of the policy. Can I deduct the premium payments?
- I’ve heard that transferring gifts of retirement-plan assets to charity is advantageous. Why?
- I'd like to donate a fine painting. Will the Foundation determine its value for my income tax deduction?
- I'm interested in establishing a charitable gift annuity. What financial provisions will the Foundation make for income payments to me and my spouse?
- If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
- What is legal name of the Augustana Foundation?
What assets can I use to make a gift to the Augustana Foundation?
During your lifetime you can make an outright gift of cash, securities personal property, real estate, and business interests. You may use your will or make a distribution from a retirement plan or life insurance policy, to make a gift to the Foundation.
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What gift plans return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals. Income-producing strategies include a charitable gift annuity, a charitable remainder unitrust and an annuity trust.
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What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. Here are some general guidelines:
- Outright gifts generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains—a great tax benefit!
- Gifts of personal property, like fine art and collectibles, are fully deductible so long as they are relevant to the Foundation’s mission. A financial advisor can guide you on this point
- Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
- Similarly, life insurance distributions to the Foundation are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments.
- The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
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I want to set up a life insurance policy, name the Foundation as beneficiary, but retain ownership of the policy. Can I deduct the premium payments?
No. The IRS would not consider that a "completed gift." The Foundation must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.
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I’ve heard that transferring gifts of retirement-plan assets to charity is advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes. The tax will be paid at some point — by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support the Foundation!
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I'd like to donate a fine painting. Will you determine its value for my income tax deduction?
The IRS requires that donors of collectibles secure an independent appraisal of the items to establish fair market value.
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I'm interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse?
Your charitable gift annuity will be treated as a general obligation, backed by the Foundation’s assets.
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If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through annual gifts and we greatly appreciate and encourage any annual support you may want to consider.
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What is legal name of the Augustana Foundation?
The legal name is The Augustana Foundation.
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