A gift by check or credit card is a simple and popular way to support the Scholarship Foundation. Your gift may be tax deductible, and the amount of tax savings depends upon your income tax rate.
Giving appreciated stock provides multiple tax benefits while supporting the Scholarship Foundation. A gift of appreciated securities provides a charitable income tax deduction for the full fair market value of the stock and no capital gains tax is due on the appreciation. These benefits reduce the real cost of making a gift.
Charitable IRA Rollover
For individuals age 70½ or older, the Charitable IRA Rollover is a tax-wise way to contribute to the Scholarship Foundation. If you are required to take annual withdrawals from an IRA account, gifting these otherwise taxable distributions can satisfy your annual Required Minimum Distribution (RMD) and exclude these funds from your taxable income. The transfer must be made directly from the IRA administrator to the Scholarship Foundation, and you can make such a gift up to $100,000 per year.
Estate or Deferred Gifts
Naming the Scholarship Foundation in your will or trust is an excellent way to perpetuate your commitment to the Foundation’s mission. The Foundation may be designated as a direct recipient in your estate plan or as a contingent beneficiary of your bequest.
A life insurance policy provides a relatively inexpensive way to ensure financial support for our spouse, children, or other dependents when we die. But when an existing policy is no longer needed to satisfy the original purpose (children are grown, spouse is well provided for), the policy can be an ideal asset to fund a charitable gift larger than anything you thought possible during your lifetime. The Scholarship Foundation can be named owner and beneficiary of the policy, which provides several tax benefits. Alternatively, the Foundation can simply be named as beneficiary of the policy to be used for the purpose that you designate.
Charitable Gift Annuity
Establishing a charitable gift annuity is a great way to make a gift to the Scholarship Foundation while receiving income for life. In exchange for your contribution of cash or appreciated stock, you, and/or a loved one, receive fixed payments for life. A charitable gift annuity provides an immediate income tax deduction as well as tax-free income over the life expectancy of income recipients.
Charitable Remainder Trust
A charitable remainder trust can provide substantial income to you during your lifetime, during the life of one or more named beneficiaries, or both. After making a contribution to fund the charitable remainder trust, you receive an income stream during your lifetime as well income tax benefits and potential estate tax benefits. After the passing of all named income beneficiaries, the trust remainder is then transferred to the Scholarship Foundation to be used as you designate.
Retirement Plan Beneficiary
There are many incentives that encourage saving for retirement through such plans as a 401(k),403(b), and a traditional IRA. The federal government, however, places a heavy tax burden onqualified retirement plans at the time of your passing if those assets are not transferred to a surviving spouse. If there is no surviving spouse or you seek to pass your retirement plan assets to your heirs, your family could receive significantly less due to the potential double taxation of income tax and estate tax. Naming the Scholarship Foundation as beneficiary prevents this possible double taxation, while leaving you with the opportunity to benefit heirs through other assets.
Contact us: 574 259-0522 or 3515 N. Main Street, Suite C, Mishawaka, IN 46545