Types of Gifts


Types of Gifts

Elementary Graduation

Gifts of Cash

  • The simplest way to donate to the Dunn Foundation is a gift of cash providing immediate support for its many programs and providing an immediate tax deduction for you.

Gifts of Real Estate

  • Anytime is good to consider a gift of real estate. Say, for instance, you donate real estate worth $100,000, purchased for $60,000. The Foundation receives a gift of $100,000 and you receive a deduction for the same amount while avoiding capital gains tax on the $40,000 appreciation. What’s more, it’s possible to retain the use of the real estate for the remainder of your lifetime.

Gifts of Stock

  • Years-end might be a good time to consider a gift of appreciated stock. The stock can be publically traded or closely held. For example, if you donate stock worth $20,000, purchased for $10,000, the Foundation receives a gift of $20,000 and you receive a deduction for the same amount while avoiding capital gains tax on the $10,000 appreciation.

Gifts of Income

  • If you have investments that provide income you do not need for several years, you can gift that income to the Foundation and take a deduction in one year for all the income to be given in future years.

Gifts of Life Insurance

  • You may have a life insurance policy that you no longer need for estate planning purposes. You can gift that policy to the Foundation and take a deduction for the cash value.

High-School-BaccOutright Gifts

Giving through the Foundation offers two important tax benefits: A charitable income tax deduction in the year of the gift AND the reduction of future estate taxes. If you use marketable securities to make a gift, you will not pay capital gains taxes on those securities, but will receive the full fair market value of the gift as a charitable deduction.

Deferred Gifts

Bequests:  You may want to consider leaving a portion of your estate to the Foundation. A charitable bequest is one of the easiest ways to make a lasting gift to St. Peter’s School. A bequest can easily be made through a simple beneficiary designation in a will or trust and will substantially reduce state and federal estate taxes. This type of gift can save you as much as 62% in estate taxes.

Life Insurance: Often people purchase life insurance when they need protection for their family, business or estate. Later in life, they may find they do not need much insurance and find it desirable to use the policy to make a charitable gift.  One option is to name the Foundation as beneficiary. Another is to give the policy to the Foundation, take a deduction for the cash value, and make annual tax deductible gifts to the Foundation for the purpose of paying the premiums.

Life insurance enables you to make a much larger gift than you might have thought possible. Since life insurance is taxed for federal estate taxes, a gift of a life insurance policy to the Foundation would save as much as 60% of the policy proceeds at death.

Retirement Account Beneficiary: For some taxpayers, the beneficiaries of their Retirement Account will receive only 20% of its value because of state and federal income taxes and estate taxes. For those taxpayers, their Retirement Account can be contributed to the Foundation with the taxpayer‘s family losing only 20% of the retirement account’s value.

Life Income Arrangements: Retention of income for life. If you desire, you can make a gift to a charitable trust and remain an income beneficiary for life and have the gifted assets remaining at your death be distributed to the Foundation.

Pooled Income Fund: This Fund is composed of assets donated by many contributors co-mingled to form one investment pool. Donors contribute an irrevocable remainder interest to the Foundation. As a donor, you retain the right to receive your share of the Fund’s income for life. The rate of return varies each year depending on the overall performance of the Fund.

The Fund accepts cash and marketable securities though the law prohibits the Fund from receiving tax-free securities. A portion of the gift qualifies for an income tax deduction. Income to donors is taxed as ordinary income. A donor may designate one or two beneficiaries. Upon the donor’s death, the balance of the contribution is distributed to the Foundation.

elementary-studentsGift to a Charitable Remainder Trust (CRT)

The gift is made now to the CRT. You, and possibly a second beneficiary, will receive income for life (or joint lives) from the CRT. At the time of your death or the death of the joint beneficiary, the assets in the CRT are distributed to the Foundation. You receive a current income tax deduction for the value of the remainder interest going to charity at the time of your death.

Gift of Real Estate with Retained Use for Life

The gift is made now to the Foundation. You, and possibly a second beneficiary, will retain the use of the real estate for life (or joint lives) from the Foundation. At the time of your death or the death of the joint beneficiary, the real estate is owned by the Foundation.