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1. |
What are the assets I can use to make a gift to
Samaritan's Purse?
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Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).
Through your will or with a distribution from a retirement plan or life insurance policy, your gift can be designated to Samaritan's Purse in accordance with your wishes.
You also have the option of making a gift that returns lifetime income to you, your spouse or other individuals, such as a charitable gift annuity, charitable remainder unitrust or annuity trust.
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2. |
What sort of assets can I use to make a gift? |
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Almost anything: cash, publicly traded securities, life insurance, the balance of your retirement account. Other assets can be very valuable but are more complicated to administer and must be reviewed by Samaritan's Purse before we can accept them as gifts: real estate, closely held stock, artwork and collectibles.
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3. |
What tax deduction will I receive for my gift? |
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Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:
- Outright gifts to Samaritan's Purse generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains -- a great tax benefit!
- Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission. We can advise you on this point.
- Bequests do not generate a lifetime income tax deduction. They do provide estate tax savings, however.
- Similarly, life insurance distributions to Samaritan's Purse are not income-tax deductible, but do provide estate tax savings. If you have made Samaritan's Purse the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 4 below).
- The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
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4. |
I want to set up a life insurance policy, name Samaritan's Purse as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make? |
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No. The IRS would not consider that a "completed gift" – and would say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for gifts offsetting premium payments to be deductible.
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5. |
I have heard that transferring gifts of IRA assets to charity are advantageous. Why? |
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Qualified retirement plans such as IRAs, 401(k), 403(b) and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75% or even higher on large taxable estates. The tax will be paid at some point—by your estate and your heirs…unless contributed to charity (as a result of its non-profit status). In other words, by making a gift of retirement assets to charity you are, in essence, receiving double benefits. Your estate and heirs will not be taxed on the portion that goes to charity, and you will provide support to Samaritan's Purse.
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6. |
Can I transfer my IRA to Samaritan's Purse to set up a life-income gift, and avoid income tax on the transfer? |
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Under present law, any lifetime distributions from an IRA are included in your taxable income, even if these funds are transferred to us. You do, however, receive a current charitable deduction when you establish a life income gift, which would partially offset the amount included in your taxable income. Proposed legislation would make the transfer tax-free, however. Watch our Website for updates.
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7. |
I would like to donate a painting. Will you determine its value for my income tax deduction? |
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The IRS requires that donors of artwork and collectibles secure an independent appraisal of the items to establish fair market value. The appraisal has to be related to the gift, too -- an insurance appraisal would not suffice. We can assist you on this point.
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8. |
I am interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse? |
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Your charitable gift annuity will be treated as a general obligation of Samaritan's Purse, backed by all of our assets. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our financial policies.
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9. |
If I create a bequest or life-income gift, will you continue to ask me for annual contributions? |
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Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today's efforts are supported through your annual gift and we greatly appreciate and encourage any annual gift you may consider. If you would like to be removed from any future communication, please let us know.
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