The easiest way to make a contribution to Madera Rescue Mission is by donating cash, appreciated securities or property. You will receive a full fair market value tax deduction, and you can avoid any associated capital gain tax in the process.
GIFTS OF SECURITIES
Even during periods of stock market turmoil, many people own publicly traded securities with long-term appreciation (held longer than one year). These assets are often the best to donate as they provide a greater tax benefit. In order to preserve maximum tax advantages, you should transfer the actual securities to us rather than the proceeds from a sale. - (If you have stock losses, generally you should not contribute the stock, but rather sell the stock yourself to realize the loss for tax purposes. You can then contribute the proceeds and take a charitable deduction.) Mutual fund shares can provide the same tax advantages as gifts of appreciated stock. Mutual fund transfers often require several days, so plan ahead and initiate the transfer well before December 31.
When making a gift to a charitable organization, real estate is sometimes the best gift of all. Many people reach a stage in life where they simply don’t want the management responsibility that goes with property ownership. Outright gifts of real estate assets–or through a life income arrangement–can produce multiple tax advantages to the donor. If you have rental apartments, commercial buildings, a farm or vacation property, you may be able to avoid capital gains, taxes and depreciation recapture taxes as well.
The charitable gift annuity is one of the most popular forms of life income gifts and offers many advantages:
- Income for Life – at attractive payout rates for one or two lives
- Tax Deduction Savings – a large part of what you transfer is a deductible charitable gift
- Tax-Free Payout – a large part of your annual payment may be tax-free
- Capital Gains Tax Savings – when you contribute securities to fund a gift annuity, you avoid any taxes on your “paper profit”
If you are experiencing a low return on CDs, money market accounts, treasury notes or bond funds, a gift annuity can be an excellent alternative. Returns are based on annuity tables and vary by age.
Helping hurting men, women and children in need can also reduce your tax liability.