Ways to Give
Leverage your assets for greatest impact
An Outright Gift of cash is the simplest method of giving. You can deduct this type gift amount from your federal income tax return up to 50 percent of your adjusted gross income. If the gift total exceeds the gift ceiling for one year, you can carry over the remainder of the deduction up to five succeeding tax years until it is exhausted.
SECURITIES AND REAL ESTATE
Giving long-term appreciated securities offers you two tax savings. First, you avoid paying capital gains on the increase in value. Second, you receive a tax deduction for the full fair market value on the date of the gift. Gifts of securities are deductible up to 30% of your adjusted gross income and you can carry over any remaining deduction up to five succeeding tax years.
The property may have so appreciated in value over the years that its sale would result in a sizeable capital gains tax. If the property is given outright, you’ll avoid any tax on the gain, reduce your taxable estate by the value of the gift, and receive a charitable contribution deduction for 100 percent of the fair market value of the property.
With its flexibility and expertise, South Carolina Christian Foundation can receive contributions of complicated assets requiring consideration and careful planning. Limited liability corporations (LLC), limited partnership interests (such as investment or business partnerships), or family limited partnership interests may be used to fund an account at SCCF. Donors receive a tax deduction for the appraised fair market value (up to 30% of Adjusted Gross Income) and can use the value of their contributions to support their favorite causes. (Special rules apply to shares of sub-chapter S corporation stock.)
When people have paid up life insurance policies but no longer need the insurance, they can give the policies to SCCF and take a charitable deduction equal to the cash value of the policy. If annual premiums are still to be made and you continue to pay them, those premiums will become tax deductible each year.
Life insurance gifts are also appealing to younger people because they are able to make large donations with a modest premium payment. You can either keep the policy and name SCCF as the beneficiary or you can give the policy to SCCF.
CHARITABLE REMAINDER TRUST
With a Charitable Remainder Trust, you can make a gift and receive income. You give assets (usually $100,000 or more) to a trust specifying either a fixed amount or a fixed percentage of the trust’s value each year will be paid either for lifetime to a beneficiary or for a specified period of time not to exceed 20 years. At the same time you specify the remaining principal at the end of the trust term will go to charity.
By naming SCCF to receive the remaining principal, you can create a fund in your name that will become your permanent legacy to the community. You can use the remaining balance to establish any fund with SCCF. The Charitable Remainder Trust is especially good for people who have accumulated appreciated assets with a low yield, want to increase current income without incurring capital gains taxes, who want to reduce estate taxes, or who want to make significant future charitable gifts.
CHARITABLE LEAD TRUST
If you want to make a gift to SCCF now but also want to keep the fit property for your children or grandchildren, you can set up a Charitable Lead Trust. You make your gift, perhaps land or stocks, to the trust now and the income goes to your named fund at SCCF for a designated number of years. Your gift and estate taxes are reduced and the property passes to your family at the end of the designated period. Community ministries benefit during all those years and your family may receive much more than they would otherwise by reducing your estate tax.
After you have taken care of your family and loved ones, an easy way to make a gift to SCCF is through a bequest in your will. Since a bequest does not become effective until your death, the assets remain yours to use during your lifetime. Your taxable estate at death is reduced by a 100 percent deduction for the amount of the bequest. Types of bequests include specific sums of money, specific assets like real estate and stock, life insurance, or a designated percentage of your estate.