How to make a Tax Deductable Donation to our 501c3 Foundation - Carmel Valley Kiwanis Foundation, Inc.
How You Can Receive a Tax Deduction and Support the Community...A Win, Win!
In 2011 the Carmel Valley Kiwanis established itself as a 501c3 non-profit corporation called the Carmel Valley Kiwanis Foundation, Inc.. Our purpose in establishing the Foundation was to allow donors to make tax deductible gifts that are 100% distributed to the Carmel Valley Community. That's right, no overhead, no administrative expenses, no fund raising expenses - your entire contribution ends up benefiting Carmel Valley and its residents.
1). A Cash Contribution is the simplest, by writing a check or using a credit card. If you itemize your deductions and make a $100 contribution, your actual taxes, if you are at the maximum tax rates, will be reduced by approximately $45.00 and you get that "feel good" feeling by helping out your community.
2). Donate Appreciated Property such as securities and real estate. Generally speaking it works like this: If the donor donated the stock to the Kiwanis Foundation, no tax is due and the donor will get a tax deduction for the full $28,000. That will result in a tax SAVINGS of approximately $12,600 if the donor is in the highest tax rates. The Foundation can then sell the stock, pay no tax and, once again, 100% of your donation will be put right back into your community and there's that "feel really good" again.
3). A Special Trust is a form of donation set up for particularly large donations, such as a uni-trust or annuity trust. Under this arrangement, generally speaking, the donor gets a significant tax deduction, a stream of income until the donor's demise, and, in some instances, use of the property until the donor's demise.
Lets say the donor has 1,000 shares of stock that cost $5,000 and is worth $28,000. If the donor sold the stock he would pay taxes at approximately 25% on the difference between the cost and market value. That would be a tax bite of $5,750.
4). A Bequest is a method where the donor specifies certain assets (or an entire estate) is to be bequeathed (given) to a charitable organization, such as the Kiwanis Foundation, upon the donor's death. While this donation has no effect on the donor's current taxable income, it is a deduction from the donor's estate and thus will save taxes.
5). Life Insurance Beneficiary donation can be made by naming the Foundation as the beneficiary of a life insurance policy or of a retirement plan such as a 401(k), IRA, Keogh, annuity, or pension of profit-sharing plan.
The foregoing is a general discussion and should not be construed as tax advice. Please consult with your tax adviser before making any significant charitable contribution.
501(c)(3) organizations exist strictly for “charitable purposes” and are given tax exempt status by the IRS. By contributing to a 501(c)(3) nonprofit organization, you are making a positive difference in your community while taking advantage of a tax deduction for the contribution. There are positive tax implications for gifts you make in your lifetime as well as gifts you make through your estate.
So, make sure to talk with a professional adviser about how you might include the Carmel Valley Kiwanis in your estate plans and consider a generous gift today as well.