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The Tax Benefits of Charitable Giving
Posted by abeContentEditor on May 18, 2018 in categoryFacts & Research



Tax season isn’t a favorite time of year for many people, but in the world of charitable giving, some may have a different perspective. Donors who make planned gifts to the charities they are passionate about benefit by receiving additional income and capital gains tax relief. All parties benefit:

  • the donor gets to make a charitable contribution
  • the nonprofit gets to strengthen the relationship with that donor
  • the donor gets a tax break for the gift
  • the nonprofit secures funding, resulting in furthering their missions

Contributing securities, real estate, and other investments can be very beneficial planned gifts. By contributing appreciated property, a donor receives a charitable deduction for the full market value of the contributed asset and pays no capital gains tax.

Additionally, donors who establish a life-income gift receive a tax deduction for the full, fair market value of the assets contributed, minus the present value of the income interest retained; if they fund their gift with appreciated property they pay no upfront capital gains tax on the transfer.

Bequests and beneficiary designations in life insurance policies and retirement accounts can also provide tax benefits. Such gifts to charities upon the donor’s death enable the donor to be exempt from estate tax.

Planned Giving for Adult Literacy

A planned gift to ProLiteracy allows us to invest in resources to increase adult literacy efforts worldwide. This allows us to help adult learners overcome the challenges of having low literacy and achieve high school education, U.S. citizenship, and employment. 

Planned gifts can include bequests, retirement gifts, stocks and securities, real estate, life insurance, and gift annuities. For more information on establishing a legacy so that your passion for literacy will continue to make an enduring impact, please visit ProLiteracy.org/Get-Involved/Planned-Giving, or contact Wallace Barkins at 1-888-926-7323.



 





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