Gifts & Support

Forms of Gifts

Cash

Stock

Life Insurance

Mutual Funds

Qualified Retirement Plan Assets

Planned Giving

Cash

Cash, usually in the form of a check is the most common form for a charitable gift. Cash gifts enable you, the donor, to claim income tax deductions of up to 50 percent of your adjusted gross income in the year the gift is made with a five year carry–forward period. The actual savings from gifts of cash will depend on the individual donor’s tax bracket. The higher the tax bracket the less the cost of the gift.

Stock

Donors who contribute long term appreciated securities to the Dominican Sisters receive a double federal tax benefit. Gifts of appreciated stock are deductible at their full market value if held longer than 12 months. Fair market value is the mean between the high and low trades on the date of the gift.

The capital gains tax on the stock’s appreciation (the difference between the property cost basis and its present fair market value) is completely avoided.

The fair market value of the donated securities can be deducted up to 30 percent of the donors adjusted gross income, with a five year carry-forward if required.

Donors who have stock that has not appreciated or which they no longer care to hold may find a charitable donation of the stock to be a better option.

Closely Held Stock

Closely held stocks are shares in a privately owned business. The shares are usually owned by family members, top management and the corporation itself.

The stock can be contributed outright to the Dominican Sisters, and the donor is entitled to a deduction for the appraised fair market value. The donor avoids the potential capital gains tax on any appreciation in the value of the stock.

Subsequent to the gift, the congregation may sell the stock to the corporation or to other shareholders for cash. There can be no prior agreement between the charity and a potential buyer before the gift is made.

The donor is entitled to a deduction for the full value of the stock up to 30 percent of his or her adjusted gross income. A “qualified appraisal” is required if the claim exceeds $10,000.

Life Insurance

In considering a charitable gift, life insurance is a common resource that is often overlooked - and a convenient gift. You may have an individual policy that has outlived its original purpose or have group life insurance as a benefit through your employer. Using an existing policy or purchasing a new one is an easy way to make a significant gift to the Dominican Sisters of St. Mary of the Springs

• Add the Dominican Sisters as a beneficiary.
Regardless of the reason why you have life insurance or whom you have chosen to receive the proceeds, you can always add the Dominican Sisters as an alternate beneficiary to a new or existing policy. If the individual named as the beneficiary of the policy does not survive you, the Dominican Sisters automatically become the recipient of the insurance proceeds.

• Include the Dominican Sisters as one of the primary beneficiaries if your current beneficiary will not need the entire amount of the policy.
For example, you could designate that your existing beneficiary will receive 60% of the insurance proceeds and name the Dominican Sisters as the beneficiary of the remaining 40%.

HOW: To add the Dominican Sisters as a beneficiary to an existing policy, simply contact your insurance agent and ask for a “change of beneficiary” form. Then complete the form to include the “Dominican Sisters” as a beneficiary and return it to your insurance company. While no income tax benefits are available for naming the Dominican Sisters as a beneficiary, any funds that are finally paid to the Dominican Sisters will be deductible as a charitable gift for federal estate-tax purposes.

• Give an existing policy.
Perhaps you purchased an insurance policy for a specific purpose, but now find that the need for the policy no longer exists. In that event, you may want to consider giving the old policy to the Dominican Sisters.

HOW: A gift can be accomplished by simply completing an “assignment of policy” form obtained from your insurance agent. Because you are transferring the ownership of the policy to the Dominican Sisters, you are entitled to a current charitable deduction for federal income-tax purposes. The amount you can deduct is the “interpolated terminal reserve” value of the policy which your insurance agent can calculate for you.

• Buy a new policy.
You may be able to make a significant gift to the Dominican Sisters by purchasing a new life insurance policy with the Dominican Sisters as the beneficiary. If you name the Dominican Sisters as the owner of the policy as well as the beneficiary, the yearly premiums you pay are tax deductible.

WHY: the premiums are deductible as a charitable contribution. For example, if you purchase a single-premium life insurance policy for $5,000 and name the Dominican Sisters as the owner and beneficiary, you would receive an immediate income-tax deduction of $5,000. The policy begins to earn interest on the cash value plus interest in addition to the face amount of the insurance. In this way, you can ultimately make a very substantial gift to the Dominican Sisters.

Mutual Funds

Mutual Funds can be excellent assets to contribute to the Dominican Sisters. The fair market value of a mutual fund share is its public redemption price on the valuation date. Gifts of mutual funds are deductible at their fair market value up to 30 percent of the donor’s adjusted gross income.

Qualified Retirement Plan Assets

Retirement plan assets can make an excellent charitable gift. Qualified retirement plans enjoy favorable tax treatment prior to retirement but are severely taxed at the death of the plan participant.

Primary among the incentives in the CARE Act recently passed by Congress is the IRA Rollover, which would allow individuals to transfer funds tax-free from an Individual Retirement Account or other qualified retirement vehicle to a charitable organization. Under the provision, funds folded into a planned gift could be transferred when the donor reaches age 59½. A direct contribution to a charity could be transferred when the donor reaches age 70½.

Planned Giving

You can arrange to Leave a Legacy gift through your estate planning. Some planned gifts, like charitable gift annuities, can provide income to the donor during their lifetime, while the residual goes to the Dominican Sisters at the death. The Dominican Sisters follow the suggested rates of the American Council on Gift annuities. For more information see American Council on Gift Annuities.