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Charitable Donations
You Can Make a Difference
Many people who support our mission say they derive great satisfaction from their generosity and would like to do more. We can suggest creative ways to support us that you might not have considered. If you are interested in any of these ideas, please feel free to call us to discuss them in greater detail. It is now possible to make charitable contributions to hospice using a credit card.
Some Old Favorites
Nothing could be easier than making a gift of cash to a charitable organization. It is the most common gift and the one you probably think of first. All cash donations are deductible if you itemize in the year of contribution and up to a limit of 50% of your adjusted gross income. Any excess deductions can be carried forward for the next five years. There are several types of cash contributions you can make.
- Annual or year-end gifts. Many people make once-a-year charitable donations frequently near the end of the year.
- "In Memory of" gifts. You can make a gift in memory of a friend or loved one. This can be done at the time of death or on the anniversary of a significant date, such as a birthday or a holiday.
- "In honor of" gifts. A cash donation can be made in honor of anyone you choose on the occasion of his or her birthday, graduation, anniversary of other opportunities. It is the perfect gift for someone who has everything.
- Gifts "In lieu of flowers." You may decide to make a gift to us in lieu of flowers when someone you know has died, because that person appreciated our work or had some connection to us. Sometimes the family of a donor requests that donations be made to us instead of sending flowers arrangements.
- Life Insurance. Do you have life insurance policies that are no longer needed? You may either donate the life insurance policy to us, or simply name us as the beneficiary of a life insurance policy. For the gift of a paid-up policy, you will be entitled to an income tax deduction equal to the lesser of the cash value of the policy or the total premiums paid. To qualify for the federal charitable contribution deduction of a gift of an existing policy you must name the charity owner and beneficiary. Even if you are still paying premiums on your policy you can give it away, and future gifts to us to pay the premiums will be tax deductible. Of course, the easiest way to use life insurance for charitable giving is to simply name us as the beneficiary of a policy. There are no current tax benefits to this arrangement because it is not irrevocable, and it is only partial interest in the policy; however, it provides a very generous gift with attractive tax benefits upon your death.
- Bequests. Have you made provisions in your will to benefit us? Bequests are the most popular type of planned gifts. Anything you leave to charity will reduce the size of your taxable estate while helping a good cause. You can leave a specific bequest of a specified sum of money or a particular piece of property to us. Other options are to leave a percentage of your estate or a percentage of the residue to us after making provisions for family or friends. For instance, you could leave us a specific bequest of $10,000 or you could leave us 10 percent of the residue of your estate.
- Appreciated securities. Property that has risen in value and that you've held for more than one year should be transferred directly to us. You pay no capital gains tax on this transaction and you can deduct the full fair market value. Fair market value is calculated using the average of the high and low share price on the gift date.
- Depreciated securities. If you have stock losses, sell the stock yourself to realize the loss and take the deduction for tax purposes. Then generate a charitable contribution deduction by donating the cash proceeds of the sale to us.
Other Considerations
A gift of real estate offers you the opportunity to make a significant contribution to charity with a tax friendly outcome. There are several ways to donate real estate depending on your situation.
- An outright gift. If you own property that is fully paid off, has appreciated in value and that you no longer need or use, such as a second home or vacation property, an outright gift may be the simplest solution. You can deduct the fair market value of your gift and avoid all capital gains taxes. Plus, you no longer have to worry about the carrying costs of continued ownership, and you have removed that asset from your taxable estate.
- A retained life estate. Did you know that you can transfer the deed of your personal residence or farm to us now and keep the right to use the property for your lifetime and that of your spouse? You will receive a current charitable deductions in an amount that is based upon your life expectancy and the value of the property.
- A bargain sale can be used to generate a gift that is less than the full fair market value of the property. In this scenario you agree to sell the property to a charitable organization at less than its fair market value. With this type of charitable gift, the difference between the sale price and the fair market value is the amount that determines your charitable deduction. While the tax rules relating to a bargain sale are somewhat complex, the net result is often more favorable than selling the property at fair market value and making a charitable contribution from the realized capital gain.
For More Information
The array of gift-giving options and the ways you can incorporate them into your estate plan are as varied as the circumstances they serve. We are always available to provide you with further information and suggestions on gifts that fit with your lifestyle and philanthropic goals.
If you would like to make a charitable contribution to Hospice of Salina, please mail to:
Hospice of Salina, Inc.
730 Holly Lane, PO Box 2238
Salina, KS 67402-2238
If you have questions about making a charitable contribution to Hospice of Salina, Inc., please call (785) 825-1717 and ask to speak to the CEO of the Hospice program.
P.O. Box 2238
Salina, KS 67402-2238
(785) 825-1717
Hospice@srhc.com