Gift of Cash
Use a direct gift of cash or check to make a gift to Temple Beth Sholom.
Claim a deduction against up to 50% of your income and help Temple Beth Sholom immediately.
Gift of Appreciated Property
Make a gift of property that has appreciated in value to Temple Beth Sholom, like stocks, bonds or other assets.
Claim a deduction against up to 30% of your income and also avoid any capital gains tax on the appreciation.
This allows you to make a gift that costs you less than the benefit it delivers to Temple Beth Sholom.
Bequest*
Leave a bequest to Temple Beth Sholom in your Will or Revocable Living Trust.
It is a gift you make today that costs you nothing and helps Temple Beth Sholom later, and your estate receives a deduction against any estate taxes due.
Charitable Lead Trust*
Establish a charitable lead trust (CLT) whereby an amount is paid to Temple Beth Sholom, annually. The term of the CLT is a set number of years, which could be the life of one or more individuals. When the CLT ends, the remainder of the trust is distributed to non-charitable beneficiaries.
There are different types of charitable reminder trusts: grantor or non-grantor, providing fixed amounts annually or variable amounts, etc. The CLT can be structured to save gift and estate taxes or income taxes.
The IRS rules and the different choices in structuring a charitable lead trust are very complex. Please be sure to meet with your financial advisor/attorney to ascertain if a CLT meets your personal and charitable goals.
Charitable Remainder Trust*
Establish a charitable remainder trust (CRT) whereby you or another non-charitable beneficiary is paid income for a set number of years or for life. At the end of the term, the remainder of the trust is paid to Temple Beth Sholom.
You receive an income tax deduction for the computed value of the amount paid to Temple Beth Sholom. There is also an estate tax reduction, where applicable.
To determine the term of the trust, the type of trust (annuity or unitrust), the beneficiaries of the trust, etc., please meet with your financial advisor/attorney to go over the potential tax consequences of the CRT and to ensure the proper administration of the CRT.
IRA Charitable Rollover Update
REF: IRA Qualified Charitable Distribution (QCD)
On July 17, 2014, the House of Representatives approved H.R. 4719, The America Gives More Act, which aims to increase charitable giving. This is of particular importance for those interested in making an IRA Charitable Rollover gift this year and in future years. H.R. 4719 includes both a retroactive and permanent extension of the IRA Charitable Rollover provision of the tax code which expired on December 31, 2013. Congressional action is still required to revive the law for 2014 and beyond. Observers think it is unlikely the Senate will pass H.R. 4719 in its current form. Rather, the Senate is likely to take up the IRA Charitable Rollover extension as part of a larger tax bill and possibly only approve a 2 year extension.
Until Congressional results are certain, how can you decide whether or not to give from your IRA? Depending on your individual circumstances, it may make sense for you to go ahead and make the charitable gift from your IRA assets. Here’s why:
If the provision is extended and you have complied with the requirements noted above (and they remain essentially the same), then the IRA gift could be made without incurring income tax on the distribution. (Of course a charitable deduction would not be allowed since the distribution would not be included in the donor’s gross income.)
Alternatively, if the law is ultimately not extended for 2014, the IRA distribution would not qualify for exclusion from gross income but the gift would qualify for an income tax charitable deduction, subject to the standard limitations on charitable deductions. Thus, if you need to take your required minimum distribution for 2014 in any event and want to make a charitable gift of that amount, then arranging for it to be directly contributed to your favorite charity in accordance with the above requirements should not adversely impact you and may be beneficial if the tax code provision is extended for 2014.
* Temple Beth Sholom will arrange to have the legal documents drafted for any individual making a bequest by Will or Trust at no cost to the donor.
For help with creating an endowment or more information, contact Marty at Endowments@tbshamden.com