Gifts
of Appreciated Securities and Other Assets
How
does a gift of Appreciated Securities benefit me?
In giving appreciated stock or bonds held longer than
one year to JAPA, you can deduct their full fair market value at the
time of the gift regardless of what you originally paid for them. In
addition, you pay no capital gains tax. Your total deduction is
limited to 30% of your adjusted gross income in any year, but you can
take any unused deduction over five succeeding tax years. These
tax savings make the actual cost of your gift less than a cash gift.
What
steps do I need to take to make this kind of gift?
Donors should contact the JAPA Executive Director,
Linda Belle, by phone at 212-682-8830 or by email: japa@igc.org.
Gifts
of other tangible assets
JAPA will review offers of tangible assets such as real estate or
art work on a case-by-case basis, and may accept these assets as
gifts if it is determined that the benefit of the gift outweighs the
cost of handling its sale.
Bequests
What
is a bequest?
A bequest simply involves including JAPA in your will or revocable
trust. You may identify a percentage of your remaining estate
or a specific amount of cash, securities, retirement plan balances,
or insurance as your gift. The value of your bequest will
be deducted from your estate for estate tax purposes. Also,
your heirs avoid capital gains or federal income taxes that would
be due if the asset(s) had been passed to them.
Language, samples of which follow below for an unrestricted
and restricted bequest, would need to be inserted into your will
to establish the bequest. It is helpful, but not necessary,
to inform JAPA of your decision.
Unrestricted Bequest:
"I hereby give the Jane Addams Peace Association, an
Illinois non-profit corporation located at 777 United Nations
Plaza, New York, NY 10017 (the sum of $______), (a specific
asset), (______shares of_____________), or (______% of the rest,
residue, and remainder of my estate) to be used for its general
purposes."
Restricted Bequest:
"I hereby give the Jane Addams Peace Association, an Illinois non-profit
corporation located at 777 United Nations Plaza, New York, NY 10017 (the
sum of $______), (a specific asset), (______shares of_____________), or (______%
of the rest, residue, and remainder of my estate) to be used for (insert
purpose(s) for which the gift is to be used here)." If,
in the opinion of the Board of the JAPA or their successors, the
need for funds for the purpose described above no longer exists,
at some future date the Board, or their successors, are authorized
to use these funds in the best interest of the Association in
a manner that will most nearly accomplish my wishes."
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Life
Insurance
There are two ways you can put your life insurance
policy to work for peace and for you.
1. Designate JAPA as the beneficiary of a new or existing policy. After
your lifetime, the proceeds are removed from your estate for tax purposes
and given to JAPA. This is known as a revocable gift because you continue
to own the policy and can change the beneficiary at any time.
2. Make
an outright gift of the policy. If you no longer need life insurance
to provide for dependents, you might consider an outright gift of the policy
to JAPA, which would receive the proceeds after your lifetime. This
is known as an irrevocable gift because you transfer ownership of the policy
to JAPA at the time of the gift. In exchange, you receive an immediate charitable
deduction for the cash surrender value of the policy. Also, for any
additional premiums paid towards the policy you would receive a charitable
income tax deduction assuming you itemize your deductions.
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Qualified
Retirements Plans
If you have accumulated significant assets
in a qualified retirement plan or IRA due to capital gains,
you might want to consider making JAPA the beneficiary of
your plan or IRA in order to reduce estate and income taxes
that would otherwise be owed by your heirs. These taxes
can be significant since the income that accumulates in these
retirement plans is tax-deferred, NOT tax free.
Because the JAPA is a 501(c)3 organization, your donation is
tax-deductible under U.S. I.R.S. code.
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