Ways to Give

Charitable gifts reward donors in many ways. There is the satisfaction of supporting an important cause, the excitement of seeing your gift lead to positive change, and, in many cases, tangible financial benefits to you and/or another beneficiary, through tax advantages and the receipt of a lifetime income stream from the donated asset. An overview of some of the ways to give is provided here. For more information, please contact us at the numbers listed below.

CHARITABLE GIFTS OF CASH OR APPRECIATED SECURITIES

Charitable gifts made during lifetime do double duty. The asset is removed from the donor’s estate for estate tax purposes and the gift generates an income tax charitable deduction for the donor.  Donors who make leadership commitments may choose to make a pledge for payment over a period of years.

Gifts of Cash
Cash gifts are deductible for federal income tax purposes up to a limit of 50% of your adjusted gross income if you itemize deductions. When cash gifts exceed this limit, you may carry over the excess deduction for up to five additional years.

Gifts of Cash from your IRA – A new opportunity
New legislation, The Pension Protection Act of 2006, was recently passed and allows an individual age 70½ or older to make a cash gift from their Traditional or Roth IRA directly to a charity, such as Johns Hopkins. The donor does not claim the distribution as income and is allowed to make distribution gifts up to $100,000 in both 2006 and 2007. 

Gifts of Stocks and Bonds
Many donors to Johns Hopkins make outright gifts in the form of appreciated securities rather than cash. Since you avoid paying a tax on capital gains that you would owe if you sold the securities, giving appreciated securities to Johns Hopkins creates additional tax advantages. 

Gifts of securities are deductible for federal tax purposes up to a limit of 30% of your adjusted gross income each year. If you itemize, you are entitled to a charitable income-tax deduction for the full value of your gift, provided you have owned the securities for more than 12 months.

GIFTS OF CLOSELY HELD STOCK 

Owning stock in a closely held corporation creates a unique gift planning opportunity. While special planning considerations are needed, under certain circumstances you can use such stock to make a valuable gift to Johns Hopkins.

GIFTS THAT PROVIDE INCOME

You may wish to make a substantial gift to Johns Hopkins but feel you cannot afford to give up the annual income produced by the asset. Our life-income gift program offers several ways to help you make such a gift, while retaining an income for your lifetime or a term of years.

The benefits to the donor vary, but all these arrangements have the following attractive features:

• Income for life or a term of years is paid to you and/or another beneficiary, such as your spouse or another family member;
• Increased income if a gift is made to a life income plan that produces a higher yield than the donated asset;
• An immediate federal income tax charitable deduction is available for a portion of the value of the gift; and
• Favorable treatment of capital gains if the asset given is in the form of securities or real estate that have appreciated in value.

We will be pleased to discuss the variety of options that you may wish to consider when planning an income producing gift.  For more information visit http://jhu.plannedgifts.org/index.php    

GIFTS OF REAL PROPERTY

As with outright gifts of appreciated securities, no capital gains tax is due when you donate appreciated real estate. You are entitled to a federal income tax charitable deduction in the amount of the appreciated value of the real estate and you avoid estate taxes on the appreciated asset.

Johns Hopkins is willing to accept real estate that is:

• Free of hazardous waste and environmental concerns
• Marketable
• Free of debt or liens
• Free of donor conditions

GIFTS THROUGH BEQUESTS

The value of a bequest to Johns Hopkins is fully deductible for estate tax purposes. A bequest can be made through a Will, Trust, Retirement Account or Insurance Policy. We would be happy to provide you with sample bequest language and encourage you to contact us to discuss making a bequest. 

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