Ways of Giving
What Kind of Assets Can I Use to Make Charitable Gifts?
Cash
Yogi Berra says, “Cash is almost as good as money.” And, indeed, it is. Cash (or a check) is the most common asset used to make a charitable gift. A gift of cash is deductible at its full value; e.g. an outright gift of $1,000 is deductible as $1,000 provided that no goods or services were received for the gift.
Stocks and mutual funds
Publicly traded securities, like stocks and mutual funds, which have been held for more than one year, are deductible at their fair market value on the date of the gift. There is no capital gains tax when appreciated securities are given to a qualified public charity like the Land Trust. Securities held less than one year and a day can be donated, but the deduction will be limited to the donor’s tax basis. If the donor were to sell a short-term security for a gain, the gain would be taxable as ordinary income, NOT at the capital gains tax rate. Securities that have depreciated in value can be sold by the owner, and the proceeds given to the Land Trust as a tax deductible charitable gift. The donor can claim the capital loss and also claim a charitable deduction for the amount contributed to the Land Trust.
Real Estate
For tax purposes, gifts of land and other real property are treated similar to securities. A gift of appreciated real estate to the Land Trust is deductible at its appraised (fair market) value at the time the gift is made, and the donor is not subject to any capital gains tax on the gift to charity. Transferring a gift of land demands due diligence by the landowner(s) and the Land Trust; if you are contemplating a gift of land, please contact us well in advance so that we can make sure we are in a position to accept the gift. Click here for more information about gifts of real estate.
Donor-Advised Funds
If you’ve created a Donor Advised Fund, you can advise gifts from the Fund to the Land Trust at a time convenient to you.
Retirement Plan Benefits
IRA’s, 401-k’s, 403-b’s and other pension plans and retirement accounts are great resources for charitable giving. The Land Trust may be named as a beneficiary of all or any part of a retirement plan. After the owner of the retirement plan dies, the designated benefits will be paid to the Land Trust. Because the Land Trust is tax-exempt the benefits are completely free of income tax, and the donor’s estate gets an estate tax charitable deduction. The donor’s estate would then have other less tax-disadvantaged non-retirement assets to leave to family members. Using retirement plans for the charitable giving portion of an estate is a “win-win” for the donor, the family, and the Land Trust.
The Aldo Leopold Society
In 2006, the Board of Directors of the Finger Lakes Land Trust inaugurated the Aldo Leopold Society in an effort to raise significant unrestricted gifts for the conservation work of the Land Trust. Unrestricted support for conservation programs is essential for the Finger Lakes Land Trust to maintain ongoing outreach to landowners and technical assistance to local municipalities.
The Leopold Society recognizes Land Trust members who make a gift of $1,000 or more. The Society also offers the benefit of a formal reception to recognize members of the Society, and an occasional outing on a property protected by the Land Trust.
The Society is named for the father of Carl Leopold, Founding President of the Finger Lakes Land Trust. Aldo Leopold was an ecologist, forester and environmentalist who developed the philosophy of the land ethic for wilderness preservation.
For more information about Ways of Giving or the Aldo Leopold Society, contact the FLLT office at (607) 275-9487.
