Options for Giving

"I'd like to make a gift. What may I give?"

Cash.
If you give cash, you will be eligible for a deduction for the full value of your gift. This deduction may be used for up to 50 percent of your Adjusted Gross Income (AGI); any unused portion may be carried forward for up to five additional tax years. Cash gifts may be fulfilled with currency, by check or credit card.

Securities.
If you gift stocks or bonds you have owned for at least one year, you will be eligible for a deduction for the full mean market value of the security on the date the securities are received by the UCC. This deduction may be utilized for up to 30 percent of your Adjusted Gross Income (AGI) and any unused portion may be carried forward for up to five additional tax years.

Real Estate.
Real estate offers a powerful way to make a significant gift to your church while enjoying tax and income benefits. You may give either all or a share of the property. A gift of real estate may help you to reduce the amount of income, capital gain, and estate taxes for which you might otherwise be liable. Finally, depending on how your gift of real estate is structured, you may be able to receive income.

Your primary or vacation home, commercial property, building lot, undeveloped land, family farm are just some of the types of real estate that you may give.

Tangible Personal Property.
Did you know that artwork, antiques, stamps, coins, and jewelry may be subject to estate taxes? Your exposure to taxes can be reduced by donating this kind of property during your lifetime.

Gifts of tangible property directly related to the mission of your church (or UCC entity you wish to support) qualify for an income tax deduction for the full fair market value of the property. (Please note: the value of the property must be determined by an independent qualified appraisal.) Gifts unrelated to the mission of the church still qualify for a deduction, but one based on the cost basis of the property. There are instances when tangible personal property with an unrelated use to the church's mission may be used to fund a UCC-managed life income gift. While such gifts will not qualify for an income tax deduction, they can provide income to you.

Life Insurance.
Life insurance offers a flexible way to make a major gift to your church. An income tax deduction may be available at the time of your gift, depending on the type of policy you give. Also, future premium payments may be tax-deductible.

Qualified Retirement Plan.

Possibly the best asset to leave to your church or other charity is your qualified retirement plan. This is because your estate will avoid all income and transfer taxes; if your children were to receive this asset as a legacy they could be liable for both income and estate taxes, leaving them will as little as $.30 on the dollar! Alternatively, if you leave this asset to your church, the entire amount will be available to support the work of the organization you care about.

All you need to do to leave your pension to your church or another charity is change the beneficiary designation (you can get the appropriate paperwork from your HR or Benefits Office). (Note: if you live in Massachusetts, your spouse will also need to sign the paperwork.)

Another option is leave your heirs as beneficiaries of your plan but also include a charity for a portion. When you die, the plan administrator can "cash out" the charity's share of your plan without any affect on the portion of your account that goes to your heirs.