Methods of Giving

Methods of Giving

Gifts of Cash: An outright gift of cash by a donor, for which the donor receives an income tax deduction as prescribed by current law. Pledging your gift over a three- to five-year period may allow you to make a more substantial gift while affording you the opportunity to adjust the timing and amount of each payment to achieve the most beneficial tax treatment.

Gifts of Appreciated Publicly-Traded Securities: A gift of stocks or bonds which are (or will be) readily marketable. The deduction for outright gifts of appreciated long-term securities (held more than 12 months) is equal to the fair market value of the securities on the date the donor relinquishes control of the assets to The Campaign for the Basilica of the Assumption, and none of the appreciation is taxable for capital gains purposes. Please note: Do not sell the stock; you must transfer the securities to the Campaign to achieve the most advantageous tax treatment.

Gifts of Closely Held Stock: A gift of stock of a private corporation. The donor may avoid capital gains on appreciation of closely held stock while attaining a tax deduction based on the stock’s fair market value. As with publicly traded stock, the donor may obtain an immediate tax deduction of up to 30% of adjusted gross income. If the gift amount exceeds 30% of adjusted gross income, the remainder of the deduction generally can be carried over for up to five years.Bequest/Living Trust: A gift of cash, securities, or real property, made upon the donor’s death, through provisions in his/her will or living trust. The amount of the gift is exempt from estate taxes.

Charitable Remainder Unitrust:
An irrevocable transfer of assets to a trust, naming the Basilica of the Assumption as the only ultimate beneficiary or as one of several qualified charitable beneficiaries. The donor receives annually a life income of a set amount or a fixed percentage, based on the wishes of the donor and the trust’s value each year. A donor generally receives an immediate partial tax deduction and may add to the principal of Charitable Remainder Unitrust in future years. If the donated assets consist of appreciated securities, capital gains taxes also may be avoided.

Charitable Gift Annuity: An irrevocable gift placed in trust in exchange for a guaranteed fixed income for life, which is calculated to take account of both the size of the gift and the donor’s age at the time of the gift. Upon the donor’s death, the assets of the trust are passed to the campaign. A current charitable deduction is available based on the IRS annuity tables. Here, too, if the donated assets consist of appreciated securities, capital gains taxes may be avoided.

Deferred Income Buildup Plans: Designation of the Basilica of the Assumption as the beneficiary of the donor’s qualified pension plans, IRA, Keogh, commercial deferred annuities, or employee stock option plans. This allows the donor the use of the assets during the donor’s lifetime, while providing the donor with the opportunity to make a large future gift and reduction to the donor’s taxable estate.

Charitable Lead Trust: An income-producing asset placed in a trust, the income of which is contributed to The Campaign for the Basilica of the Assumption for a designated period of time, after which the trusted asset is returned to the donor or non-charitable beneficiaries named by the donor. The donor may gain immediate tax advantages or may reduce gift or estate taxes when the assets are passed to children or grandchildren.

Gifts of Real Estate:
Almost any type of real property – from personal or vacation homes and commercial buildings to farms or ranches and even undeveloped lots. The property may be donated outright; serve as the corpus of a trust arrangement; or, if it is the donor’s personal residence, the donor and/or spouse may gift the property with the right of lifetime tenancy. An immediate tax deduction is available and capital gains taxes may be avoided.

Gifts of Tangible Property:
Many types of new and used equipment. If the Basilica uses a donated asset (for example, a computer system), the donor is entitled to a charitable deduction equal to the fair market value of the asset. If the Basilica does not use the donated asset, the charitable deduction is set at your cost basis in the property.

Gifts of Life Insurance: Designation of the Basilica of the Assumption as the owner and beneficiary of a policy. For a new policy, this allows the donor to classify the regular premium payments as charitable tax-deductible contributions. For existing policies, particularly those a donor no longer needs, a donor can generally deduct the entire replacement value of the policy plus any premium payments that the donor subsequently makes. If the policy is not completely paid up, its approximate cash value plus future premium payments are usually fully deductible.

Cashless Employee Stock Options Exercise Programs:
An exercise of stock options tied to a donation of the stock to The Campaign for the Basilica of the Assumption. Individuals can realize a tax write-off while the Basilica benefits from the difference between the sale price and the exercise cost. In the past, individuals who wished to donate all or a portion of their options were required to commit prohibitive amounts of money up front or assume market risk during the time the stock changed hands. Recently, a number of firms have designed programs in which they handle the transaction by establishing an account for the donor’s preferred charity and facilitating exercise of the options on a cashless basis. Such a program requires no money from the donor or from the Basilica (which receives the proceeds net of the exercise price) and entails no risk of loss.

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