There is no easier way to garner a charitable deduction and show support at the same time than by simply making a cash donation. These donations are fully deductible for income tax purposes and you see the benefit immediately on your tax return. The Foundation qualifies for a tax credit as well as a charitable deduction.
Gifts of Life Insurance
If you own a life insurance policy that is no longer needed, it may be the perfect charitable gift to the Children's Village.
Naming Children's Village as the owner and beneficiary of a paid life insurance policy entitles you to a deduction equal to your cost basis in the policy or the replacement cost, whichever is less.
You also might consider purchasing a new policy and naming Children's Village as owner and beneficiary. By donating the money required for the premium payments directly to the foundation, you could receive a full tax deduction for these annual gifts.
In both cases, you can stipulate that the proceeds from the policy be directed toward Children's Village.
Gifts of Securities
Giving appreciated stock offers you a two-fold saving. First you can deduct the full-fair market value of the stock from your income tax upon the date of the gift. Additionally, you avoid paying capital gains on the increase in value on the stock.
You can also benefit from contributing stocks and bonds that have decreased in market value.
If you sell the securities and give a cash gift, you can deduct your capital loss to offset capital gains realized during the year of your gift. You also may report the cash gift as a charitable deduction.
Gifts of Real Estate
Gifting almost any type of real property; whether a personal residence, vacation home, farm, commercial building or undeveloped parcel of land, can be tax-advantageous.
If the property has appreciated in value, its sale will result in a sizable capital gains tax. When you donate the real estate, you avoid capital gains tax, and at the same time, realize a charitable deduction for the full fair market value of the real estate.
You can also arrange to live in a personal residence, farm or vacation home for the remainder of your life or spouse's life.
An interesting approach to giving may be the contribution of a gift-in-kind. These gifts may include anything from works of art to a piece of equipment. An independent appraiser must determine the value of this deduction if the value is over $5,000. The charitable tax deduction is based on the value of the gift. You can plan to give at a later date through a planned gift.