Gifts Of Stock
You can support the Federation through a gift of long-term appreciated stock. Giving appreciated stock offers you a two-fold tax saving. First, you avoid paying any capital gains tax on the increase in value of your stock. In addition, you receive a tax deduction for the full fair market value of the stock on the date of the gift.

Gifts Of Real Estate
If you have owned your home, a vacation home, acreage, or a farm for many years, a charitable gift of that real estate can be especially tax-advantageous. The property may have so appreciated in value over the years that its sale could result in a sizable capital gains tax. If given outright to the Federation instead, you avoid the tax and, at the same time, realize a charitable deduction for the full fair market value of the real estate.

You may also wish to consider a gift of your personal residence or farm, reserving the right to continue to live in the house or farm the property for life (and, if applicable, the lifetime of your surviving spouse). Through such an arrangement you will be entitled to a current income tax deduction for a portion of the fair market value of the property.

Gifts Of Life Insurance
If you own a life insurance policy that is no longer needed, consider it as the perfect vehicle for a charitable gift! To receive a charitable deduction, name the Federation as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction approximately equal to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.

It is also possible to establish a new insurance policy in which the Federation will be both the owner and beneficiary of that policy. The premiums which are payable will be fully tax deductible.

Life Income Gifts
Your gift of cash or stock to the Federation, made in the form of a "life income gift," can actually increase your income, depending upon current money market rates and stock dividend payments. A life income gift allows you to transfer assets over to the Federation now, and yet continue to receive the income for the cash, stock, or other property contributed. A life income gift can allow you to: (1) increase your income for life; and (2) receive a generous charitable gains tax on the appreciation.

A life income gift is often made through a trust arrangement called a "unitrust" or an "annuity trust." With a unitrust, you and/or your spouse (or an other beneficiary) receive annually a fixed percentage of the fair market value of the assets in the trust. The income received will vary from year to year, based upon how the trust's investments perform. With an annuity trust, you and/or your spouse (or other beneficiary) receive a fixed amount from the trust. This amount is agreed upon when you create the trust; it stays constant, no matter what happens with the stock market or interest rates.

Bequests
While you're considering your tax savings, this may also be a good time to consider long-term tax savings, too. The federal estate tax can easily take 37% to 55% of one's estate at the time of death. That's a higher tax bite than the income tax! It definitely pays to do some advance planning with your attorney and other professional advisors. The Federation would be very appreciative if you were to establish a charitable bequest to it in your will while you save tax dollars at the same time. It can be named as beneficiary in a will in any one of a number of simple ways. An outright giftt of funds (either a designated dollar amount or a percentage of the estate) or property could be specified. You could also name a remainder beneficiary to receive funds only after specific sums have been paid to individual beneficiaries.

You should check with your accountant, tax attorney, or other tax advisor for additional information on how the above situations will apply to you.

©2001 Jewish Federation of Lane County