Ways to Give
The information shown here is not exhaustive and is meant to outline the various types of gifts and to stimulate further inquiry. It is anticipated that donors will consult with their own financial advisor before finalizing a gift. It is important for donors to consult with their financial advisors and/or accountants to determine what types of gifts are appropriate to their tax situation and to be certain all protocols are followed.
CURRENT GIFTS: Types of gifts that can be timed to benefit Wagner Community Memorial Hospital-Avera immediately, and are gift vehicles that could benefit the Capital Campaign.
- Tax deductible if donor itemizes deductions.
- Up to 50% adjusted grow income can be deducted in any one year.
- Excess can be deducted over the next five years.
- Actual savings depends on tax rate.
- The higher the tax rate, the greater the savings.
- Payable over a three to five year period.
- Deductible in the year a payment is made.
- Takes advantage of programs offered by many employers.
- Leverages donor’s gift to a higher level.
- If qualified as a long-term capital asset (a year and a day) property should be given outright.
- Avoids payment of capital gains tax due if property were sold.
- Deduction given for full value of property, limited to 30 percent of adjusted gross income.
- Excess beyond 30 percent can be carried forward for five years.
Property That Has Lost Value:
- Donor sells property, takes loss for tax purposes, then contributes the cash received from sale.
- Deduction given from both the loss and the charitable gift.
- Possible for donor to make a gift of residence, farm or vacation home, reserving right of occupancy as long as donor and spouse live.
- Irrevocable gift qualifies for immediate tax deduction based upon present value of remainder interest.
- Assign directly to the organization or, preferably, transfer through a broker.
- Amount of contribution is fair market value.
Gifts of Grain or Livestock:
- Transfer legal ownership of the commodity to Wagner Community Memorial Hospital-Avera before it is sold to minimize taxes through avoiding capital gains and taxes on income that would have been realized.
- Tax savings may be realized on federal income tax, state income tax and self-employment tax, depending upon the producers specific circumstances.
- The cost of producing the commodity can be written off as well as taking a charitable tax deduction.
- Please notify the Wagner Community Memorial Hospital-Avera in advance to the sale if you would like to make a gift of commodities, as there are a few simple procedures that need to be followed to obtain the desired tax treatment of the gift of grain or livestock. Among those requirements are that there must be documented evidence of transfer of title and the Wagner Community Memorial Hospital-Avera must be in control of the sale.
Closely Held Stock:
- Produces a current tax deduction equal to fair market value of the stock.
- Corporation may redeem shares of stock from the organization.
- Could reduce liability for accumulated earnings tax.