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You're considering an outright gift made
during your lifetime > You want to maximize your charitable
deduction > You want to deliver benefits to your church
and/or other Baptist causes immediately
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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 immediate benefits. Your
gift can be made outright to fund an endowment or donor advised
fund or to 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 – your total taxable income for the year). 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:
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Gift of
Cash
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Gift of Appreciated
Assets
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Donor's AGI
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$100,000
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$100,000
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Amount of gift
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$75,000
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$75,000
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Asset donated
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Cash
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Stock
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Total charitable deduction
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$75,000
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$75,000
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Deductible against % of AGI
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50%
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30%
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Deduction in 1st year
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$50,000
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$30,000
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Net taxable income, 1st year
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$50,000
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$70,000
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Net tax in 1st year @30% rate
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$15,000
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$21,000
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Carryover deduction
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$25,000
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$45,000
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If you are considering a gift of cash to fund an endowment fund
or life income arrangement, email
us, complete the personal illustration
form, or call us at 502-489-3533 or Toll Free: 1-866-489-3533 (Kentucky
Only) so that we can assist you through every step of the process.
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