Gifts of Cash
If you want to make a gift today and maximize your charitable deduction, you’ll surely want to consider a cash gift. Cash is the simplest donation and provides immediate benefits. Your gift can be made outright or fund many of our life income arrangements. Gifts of cash include currency, personal checks, money orders, credit cards and wire transfers.
Are there benefits to using cash to fund a charitable gift?
Yes. First, you are entitled to a charitable income tax deduction. Second, this deduction counts against a larger portion of your taxable income than with a gift of appreciated assets. Here’s why: The IRS allows you to claim charitable deductions for gifts of cash up to 50% of your adjusted gross income but only up to only 30% for gifts of appreciated assets.
What if I like the security of having cash on hand?
Your gift can be used to fund a life income arrangement. Life income arrangements are charitable gifts in which you receive an income in return for a gift, either for your lifetime or a term of years.
How it Works
- You transfer securities to Roman Catholic Diocese of Albany.
- The Diocese sells your securities and uses the proceeds for its programs.
- You receive gift credit and an immediate income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
- You pay no capital gains tax on the securities you donate.
- You can direct your gift to a specific fund or purpose.
- You can have the satisfaction of making a significant gift now or funding a life-income gift that benefits the Diocese later.
Gifts of Real Estate
Gifts of real estate frequently save you thousands of dollars in income or estate taxes. We accept gifts of residential, commercial, or undeveloped real estate. Gifts of real estate secure a charitable income tax deduction for you, based on the fair market value of the property, with no capital gains liability for the transfer.
What is a gift of real estate?
If the property is a long-term asset (held for over one year), you receive a charitable income tax deduction based on the appraised value. You may apply the deduction for up to 30 percent of your adjusted gross income and carry it forward for up to five additional years. Furthermore, you are freed from paying real estate taxes, maintenance costs, insurance, and capital gains taxes on the property’s appreciation. You also avoid capital gains taxes on the transfer and remove the asset from your taxable estate.
What if I’m still using my real estate?
You can irrevocably deed a residence (such as your home, cabin, or farm) to us but reserve the right to use it during your lifetime. This arrangement creates an immediate income tax deduction and a federal estate tax deduction.
What if I need income?
Your real estate gift can generate income for you by funding a life income gift, such as a charitable remainder unitrust.
Another option is a bargain sale. In this case, we consider purchasing property from you for a price lower than its appraised value. We receive the property, and you receive cash plus a tax deduction.
What we need from you.
We will gratefully review your gift possibility and evaluate the condition and marketability of the property.
- You will need to obtain a philanthropy title report and an independent appraisal.
- Our advisors will inspect the property and complete an environmental checklist. We may need to conduct a phase one environmental study in some cases.
- The IRS requires an independent appraisal to establish the fair market value of the property. We can assist you in following the IRS procedures.
Gifts of Business Interests
How it Works
- You give shares of closely-held stock to Roman Catholic Diocese of Albany.
- The Diocese offers the stock back to your company for redemption or re-purchase and uses the proceeds for its programs.
- You receive gift credit and an immediate income tax deduction for the appraised value of your shares, even if their original value was close to zero.
- You pay no capital gains tax on any appreciation that has taken place in the shares.
- Under certain conditions, you may be able to use closely-held shares to fund a life-income arrangement, such as a FLIP Unitrust.
- You can have the satisfaction of making a significant gift that benefits both you and the Diocese during your lifetime.