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Cash
This gift is for you if...
- You want a charitable deduction to offset the largest possible amount of your taxable income.
- You have few appreciated, low-cost-basis securities or other assets to contribute.
- You enjoy surplus cash flow after meeting your expenses.
Gifts of cash can be deducted against a larger portion of your taxable income than can gifts of appreciated assets.
Cash is the simplest donation and provides us immediate benefits. Your gift can be made outright or fund one of our life income arrangements.
The IRS allows you to claim charitable deductions for gifts of cash up to 50 percent of your adjusted gross income ("AGI" – the figure at the bottom of the first page of Form 1040).
Alternately, if you use appreciated property instead of cash to make your gifts, you can claim deductions up to only 30 percent of AGI.
Although excess deductions may be claimed over the five years after the gift is made, if you are looking for substantial immediate tax deductions you may be better served giving cash instead of property.
Example
Note: This example is based on income tax rates that can change yearly. Contact us for a personal illustration based on the latest rates.
| Gift of Cash | Gift of Appreciated Assets |
|
|---|---|---|
| Donor's AGI | $300,000 | $300,000 |
| Amount of gift | $200,000 | $200,000 |
| Asset donated | Cash | Stock |
| Total charitable deduction | $200,000 | $200,000 |
| Deductible against % of AGI | 50% | 30% |
| Deduction in 1st year | $150,000 | $90,000 |
| Net taxable income, 1st year | $150,000 | $210,000 |
| Net tax in 1st year @35% rate | $52,500 | $73,500 |
| Carryover deduction | $50,000 | $110,000 |
For More Information
Complete the personal illustration form or contact us so that we can assist you through every step of the process.
This is not professional tax or legal advice. Donors must consult their tax and legal advisors regarding their specific situation.