Many people, considering charitable giving think only of cash gifts. However, there are many kinds of gifts that do not require a gift of cash to be beneficial both to the Westview Foundation and to you, the giver.
Gifts of Cash
When a person gives cash, they help provide for the immediate needs that the Foundation satisfies. They help support efforts through providing funding for operational expenses associated with delivering food to hungry children and other programs undertaken by Westview. Gifts of cash can produce tax savings for the giver since they are deductible.
Gifts of Property
Real Property
Real property would include property such as land, houses, and buildings. There are many benefits associated with gifts of real property for both the donor and the charity.
Gifts of Life Insurance
Many people have life insurance policies that they no longer need because their situation has changed. For example, they may have purchased a policy to provide for the financial well-being of young children should tragedy strike. Now the children are grown with families of their own, the policy was fully funded years ago, and the reason for originally obtaining the policy no longer exists. Others have policies that were fully funded by their place of work before retirement, they have no plans for that policy and actually have no need for it.
These are wonderful gifts. If you were to choose to give them now, you could remove them from your estate prior to your time of passing. This could produce substantial benefits in avoiding estate taxes on the value of these policies. In addition, by giving such gifts, you ensure that even after your passing, your love can continue to live in the lives of others. To find out how you can give gifts of life insurance, contact us for more information.
These gifts allow a person to give sizeable gifts with a lower basis in cost (original cost to them, the owner). These gifts allow the giver to avoid capital gains taxes. These gifts can produce substantial tax saving benefits as deductible gifts based on current value as opposed to original costs.
Personal Property
Personal property consists of goods and items. They can range from household gifts that can be used in the children’s homes that we support; to vehicles that could be used for transporting the children for whom we provide care. Personal property can also include farm equipment that could be used in the boys’ ranch agriculture program. Art work, is another gift some consider giving from time to time that would fall under this category. If you have items that you would consider giving, and would like to know if they could be put to use within the programs we support, please feel free to contact us.
Gifts of Appreciated Stock
From a giving stand point, few gifts are more beneficial to the giver and charity than gifts of appreciated stock. Through giving gifts of appreciated stock, a person can provide a substantial gift at a lower cost to himself while avoiding capital gains taxes and getting the benefits of the face value of the stock as a tax deductible gift.
Which is better for the giver, gifts of Cash or Gifts of Appreciated Stock? Consider the example below
| Cash | Appreciated Stock | |
| Current Value | $10,000 | $10,000 |
| Original Cost | $10,000 | $2,000 |
| Benefits | Tax Deductible Gift | Tax Deductible Gift Avoidance of Capital Gains Taxes Lower Original Cost |
| *The numbers used in this table are for illustrative purposes only and do not represent any specific stock gift benefit, in that such benefits can vary from day to day depending on the markets. | ||
If a person has a choice between giving two equal gifts, cash or appreciated stock, as in our example above, here is what we would recommend:
Give the gift of appreciated stock.
Why would we make such an interesting recommendation? Using our example above, the giver provides a gift that actually accomplishes several things:
- He or she has provided a gift that had a lower cost than its current value, where as cash never changes in face value.
- He or she has avoided capital gains by achieving a “step up in basis” through doing things this way.
- The tax deduction is the same for $10,000 cash or appreciated stock.
Gifts of appreciated stock can be a very attractive option for those with charitable intent.
Key Benefits of Charitable Giving
- Helps Bring Renewed Hope to Young Lives While Making a Difference in Their Lives Today and Tomorrow.
- Substantial Tax Benefits Today
- Substantial Tax Benefits for the Future
- Gifts of Appreciated Assets can Help You Avoid Capital Gains Taxes