Ways of Giving

Gifts to the Foundation can take many forms. Below are some examples.

Immediate Gifts

Cash Gifts

• Tax deductible as allowed by law.
• Up to 50 percent of adjusted gross income can be deducted in any one year.
• Excess can be deducted over the next five years.
• Actual savings depend on tax rate.
• The higher the tax rate, the greater the savings.  

Pledges

• Payable over a three- to five-year period.
• Deductible in the year in which payments are made.  

Matching Gifts

• Takes advantage of programs offered by many employers.
• Leverages donors' gifts to a higher level.  

Appreciated Property and Stock

• Long-term capital asset property (held at least a year and a day), should be given outright.
• Avoids capital gains tax payable if property were sold.
• Deduction given for full value of property, limited to 30 percent of adjusted gross income.
• Excess beyond 30 percent can be carried forward for five years.  

Real Estate

• Possible for donor to make gift of residence, farm or vacation home, reserving right of occupancy as long as donor and spouse live.
• Irrevocable gift qualifies for immediate tax deduction based on present value of remainder interest.
• Assign directly to the organization or, preferably, transfer through broker.
• Amount of contribution is fair market value on the date of transfer.  

Closely Held Stock

• Provides a current tax deduction equal to fair market value of the stock.
• Corporation may redeem shares of the stock from your organization.
• Could reduce liability for accumulated earnings tax.

Deferred Gifts

Charitable Gift Annuity

• Provides a fixed income for the lifetime(s) of one or two annuitants.
• Amount paid determined by the rates recommended by the American Council on Gift Annuities.
• The older the annuitant, the higher the level of income.
• Portion of gift and income are tax deductible. a 

Deferred Gift Annuity

• Offers increased income and tax benefits.
• All basic features and benefits of a gift annuity.
• Income delayed until a future date chosen by donor.
• Rate of return and tax deduction dependent on length of income delay.

 Life Income Trusts

• Trust assets are funds or property contributed by donor (usually $100,000 or more).
• Flexibility in type of property that can be donated.
• Real estate and municipal bonds may be used.
• Provides a fixed amount of income (Charitable Remainder Annuity Trust).
• Provides a variable level of income (Charitable Remainder Unitrust).  

Charitable Lead Trust

• Donor provides assets for use for a limited period of time.
• Funds are invested to provide income to Immanuel St. Joseph 's - Mayo Health System.
• Assets returned to donor or to estate at end of designated period.
• Can fulfill a pledge while reducing estate and gift taxes that might otherwise be due on assets given outright to heir.

For other options, or to discuss details of each of these options, please contact Immanuel St. Joseph's Foundation Director Bob Weiss at 507-385-2932.