1. Gift of Cash: You can deduct annual cash gifts (checks, credit card, etc.) up to 39.6 percent of adjusted gross income annually. On a $10,000 cash gift in the 28 percent tax bracket, you save $2,800 in taxes.
2. Multiple-Year Gift Pledge: You can deduct cash pledged over a period of years, up to 50 percent of adjusted gross income for the portion given each year. On a $30,000 cash gift over three years ($10,000 each year) in a 28-percent bracket, you save $2,800 in taxes that each year.
3. Appreciated Stock: Appreciated stock (held more than one year) makes an excellent gift. You avoid all capital gain taxes which are 20% and receive a charitable tax deduction on the entire value of the stock. The gift is valued on the day that it is signed over to the Food Bank. The stock must be signed over before it is sold or the donor loses significant tax benefits.
4. Bonds, Mutual Funds: Bonds and mutual funds are similar to cash in their tax treatment. State, Municipal, and U.S. Government Bonds are welcome.
5. CD’s, Saving Accounts, Brokerage Accounts, and Checking Accounts with P.O.D. provisions: The P.O.D. stands for Payable on Death. You retain full ownership and full control during your life. At your death, the account balance is paid to your named beneficiary (nonprofit) immediately and without probate.
6. Charitable Gift Annuity: In exchange for a gift of cash, stock or securities, the organization will pay you, you and your survivor, or another person you name, a guaranteed income for a period of years. You receive a substantial tax deduction in the year of the gift and a portion of the income is tax-free. Upon your death, the gift remainder supports the Food Bank.
7. Deferred Gift Annuity: Similar to a gift annuity except that payments begin at a future date determined by you – retirement for example. Your tax deduction and annual rate of return increase the longer you wait to start payments. This is a very effective retirement planning vehicle.
8. Bequest made in a Will: One of the simplest way to give is the gift of your estate. You can make a gift bequest, after others have been provided for, of a dollar amount, specific property, a percentage of the estate, or what is left (remainder) to the Food Bank.
9. Gift of Life Insurance: A simple way to make a significant future gift is to name the organization beneficiary to receive all, or a portion of the proceeds of an existing life insurance policy. You will receive a tax deduction for the cash surrender value, thus reducing your tax liability in the year of the gift.
10. Purchase a New Life Insurance Policy Naming the Arkansas Foodbank Owner and Beneficiary: You receive a charitable income tax deduction for each premium payment made and provide a major gift to the Food Bank with a modest annual payment.
11. Personal Property (Art, jewelry, books, guns, coins, royalty rights, etc.): Gifts of personal property are always welcome, including collections, royalty, and mineral rights. Charitable tax deductions are available in the year of the gift. The Food Bank liquidates gifts of this nature and invests the proceeds at the Food Bank.
12. Outright Gift of Real Estate: One of the most overlooked gift forms is real estate. We will be happy to discuss the possible gift of land, a house, or vacation home. You will receive a tax deduction for the full fair market value, as well as avoiding all capital gain taxes. The Food Bank liquidates these gifts and invests the proceeds at the Food Bank.
13. Real Estate with Life Tenancy, also called a Life Remainder Interest Deed: Receive a substantial income tax deduction by giving (deeding) your home or farm to the Food Bank now. You continue to live there, maintain the property as usual, and even receive any income it generates. At your death, the Food Bank will sell your property to support the Food Bank.
14. Pooled Income Fund: This is similar to a mutual fund and you receive a portion of the fund’s annual income. You receive a substantial current year tax deduction and can avoid capital gain taxes if the gift is made with appreciated securities. Additions can be made easily. Upon your death, the fund is available to the Food Bank.
15. Charitable Remainder Trusts (Irrevocable) (Annuity and Unitrusts): Donors can select the rate of return from these income arrangements and also choose a fixed or fluctuating annual payment. Capital gain taxes are avoided and you will receive a tax deduction based on the age of the income recipient and the rate of return.
16. Charitable Lead Trust: In a charitable lead trust assets (cash or securities) are transferred to a trust that pays income from the fund to the organization for a predetermined number of years. At the end of the time period, the trust terminates and the assets are given back to the persons you name. The income tax deduction is for payments made annually to the organization.
Chief Development Officer
Phone: (501) 565-8121