Planned Giving

Q: Which is better — donate stock to a charity or donate the proceeds from selling the stock?
A: It depends on whether you’ve gained or lost money on the investment.

If the stock has increased in value since you bought it, then you’re better off donating it to charity instead of selling it. That way, you’ll avoid the capital-gains taxes on the profit. Say you bought 100 shares of a stock at $10 and it’s now worth $40 per share. If you give the stock to charity, you won’t have to pay the capital-gains taxes on the $3,000 in profit. If you held the stock for more than a year and are in the 15% long-term capital gains tax bracket, that move will save you $450 in taxes, which you’d owe if you sold the stock first. And if you’ve owned the stock for more than a year, you’ll still be able to deduct its current market value — $4,000 — as a charitable contribution on your taxes if you itemize, like you would whether you gave stock or cash. (If you held the stock for one year or less, then you’d only be able to deduct the original $1,000 purchase price.)

If the stock has decreased in value, though, it’s better to cash it in first so you can deduct the loss. If that 100 shares of stock you bought at $10 is now worth $4, for example, you’ll be able to write off the $600 loss if you sell the stock before giving the money away. If you held the stock for more than a year and are in the 15% long-term capital-gains bracket, for example, that move can save you $90. And you’ll still be able to deduct the value of the gift as a charitable contribution — $400 in this case.

If you own property that is fully paid off and has appreciated in value, an outright gift may be the simplest solution. You can deduct the fair market value of your gift, avoid all capital gains taxes and remove that asset from your taxable estate. Or, through your will you can give another person your home if that person survives you, if not, the property passes to us.

For detailed information on giving real estate, please reference this Gift of Real Estate PDF 

Life insurance can provide liquidity for paying taxes and other expenses at death. However, some of the most satisfying uses for life insurance policies are connected with charitable giving!

If you have a life insurance policy you no longer need, consider contributing it to a charitable cause you believe in. Or, you can purchase a new policy and naming The GOD’S CHILD Project as beneficiary. Before making a purchase of new insurance, please contact The GOD’S CHILD Project.
If you are considering a sizable bequest to The GOD’S CHILD Project provided your family’s future inheritance is not affected, life insurance can play a part in meeting this goal, too, by replacing for your heirs the amount donated.

Life insurance’s versatility makes revisiting its uses a good idea. For detailed information on giving life insurance, please reference this Gift of Life Insurance PDF

The accumulation of assets in your retirement plan is the basis for a financially secure future. To preserve your retirement assets after your lifetime, consider the benefits of using them in an alternative way.

Retirement accounts are often exposed to income and estate taxes at a combined marginal rate that could rise to 65 percent or even higher on large, taxable estates. Many of these taxes can be avoided or reduced through a carefully planned charitable gift.

Other considerations when deciding to use retirement plan assets for charitable giving include:

• Passing your account to a charitable organization as your primary beneficiary.
• Transferring it to a deferred giving arrangement that will provide a lifelong income for a family member, after which the remaining assets pass to the organization.
• Or, a deferred gift that is designed to provide a lifelong income for yourself.

For detailed information on giving retirement assets please reference this Gift of Retirement Assets PDF

1. Log on to your airline’s frequent flyer miles program on the airline’s website to see the number of frequent flyer miles you have accumulated. Some airlines, like Continental, will allow you to donate as many miles as you would like. Other airlines have a minimum amount you can donate. United Airlines, for example, has a minimum donation amount of 1,000 miles, meaning that you won’t be able to donate any miles if you don’t have at least 1,000 in your account.
2. While still logged into your account, click on the link that will allow you to donate your miles. On the U.S. Airways website, for example, the “Donate Miles” link is located in your Toolbox on the right side of your account information. That will take you to a page that lists the charities the airline is partnered with. To donate miles through the airlines you have to donate to a charity they are partnered with. If you want to donate your miles to an organization not working with your airline, you will have to contact the charity directly and work with them to donate an awards ticket using your miles.
3. Choose The GOD’S CHILD Project and amount of miles you want to donate. Some of the airlines, like U.S. Airways, will allow you to donate online, where you simply click the charity and the amount you would like to donate, and submit. Others, like Delta Airlines, require you to send an email, fax or postal mail with your name, account number, the organization you wish to donate to and the amount you wish to donate. You can also donate miles through their OneSource Automated Telephone System. Once you have chosen the amount and submitted your donation, it will be deducted from your airline mileage account, although it may take a few days or weeks to reflect on your account depending upon the airline.