Ways to Contribute — Bibles for America

Ways to Contribute

The federal government recognizes the value of our country’s charitable giving tradition and provides significant tax benefits to those who make gifts to qualified charities. Described below are several common ways to make charitable donations. These descriptions are provided for informational purposes only and not intended to be exhaustive. Since each way to contribute may not necessarily be suitable for all individuals, Bibles for America (BfA) strongly encourages all potential contributors to consult with a qualified investment and tax professional to determine whether a particular way would meet their specific goals and objectives.

Cash Donations

Cash donations are the most straightforward and popular way to give, and can be made by check, money order, or credit card. Certain limits on the amount one may deduct in any given tax year may apply.

Stocks and Other Securities

Among the different ways of giving, gifts of stocks or other securities can provide some of the greatest tax advantages to the contributor. If a stock or mutual fund share has been owned for more than one year, the full fair market value of the security may be deducted as a charitable contribution, while bypassing capital gains tax that would normally apply. As with cash donations, certain limits on the amount of deductions a taxpayer may take in any given tax year may apply.

For more information regarding how to make a charitable gift of stocks or other securities, please write to us at [email protected].

Real Estate

Gifts of appreciated real estate are similar to gifts of appreciated stocks or other securities. If the property has been owned for more than one year, the fair market value may be deducted in full, thus bypassing applicable capital gains taxes. As with gifts of stocks or other securities, significant limitations may apply.

If you are considering a gift of real estate to Bibles for America, please consult with a qualified investment and tax professional.

Insurance

Life insurance is a unique way to give to charity. To qualify, the charity needs to become both owner and beneficiary of the life insurance policy. No “incidents of ownership” can be retained by the contributor.

If the policy is paid up, the charitable contribution is generally the lesser of the replacement value or cost basis of the policy. Ongoing premiums paid on a gifted life insurance policy also qualify for charitable deductions.

If you are considering a life insurance policy as a gift to Bibles for America, please consult with a qualified investment and tax professional.

Unitrust

The unitrust provides a slightly more sophisticated way to give, offering substantial tax savings while providing an additional benefit: annual income to the contributor and family members.

The unitrust is funded with an asset—typically appreciated real estate or securities. Once the assets are within the unitrust, they can be sold and the proceeds reinvested to produce a greater yield for the trust’s beneficiary(ies).

The income paid to the contributor or family members is usually a fixed percentage (not less than 5 percent) of the net asset value of the trust, which is typically revalued on an annual basis. If the value of the trust increases, so does the income payout.

The benefits of a unitrust include: 1) a one-time, immediate income tax deduction at the time of asset transfer; 2) possibly bypassing all long-term capital gains taxes; and 3) variable, and often increasing, income for life.

If you are interested in setting up a unitrust to benefit you and/or your family as well as Bibles for America, please consult with a qualified investment and tax professional.

Gift Annuity

A gift annuity is a contract under which a charity, in return for a transfer of cash, securities, or other assets, agrees to make fixed payments to one or two individuals for life. The amount of the payment depends on a number of factors including annuity rate, the age(s) of the beneficiary(ies), and the date upon which annuity payments commence. The annuitant enjoys a tax deduction in the year the gift is made, plus the benefit of tax-free payments for life (which are treated as return of principal for tax purposes). Applicable capital gains tax is deferred to the extent the annuity is funded with appreciated assets.

If you are interested in setting up a gift annuity to benefit you and/or your family as well as Bibles for America, please consult with a qualified investment and tax professional

We are pleased to provide the above information as a courtesy to our contributors and to provide any assistance necessary as you consider your participation in charitable giving. For any questions, please write to us at [email protected]

Many of the charitable gift transfers described above are sophisticated tax transactions. Not all of the tax or financial benefits or detriments have been fully described, presented, or disclosed. The purpose of the list above is not to provide tax advice but simply to provide basic information on ways charitable donations can be made. It is important and strongly recommended that you obtain the advice of a competent and experienced tax professional before entering into any transaction in which income or other taxes could be a significant component or factor.

IRS Circular 230 disclosure: To ensure compliance with requirements imposed by IRS, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.