A Gift Through Your Corporation
If you are a business owner, your business can make the donation and receive the tax deduction. A business you work for may either make a donation directly or match a donation you make. In some cases, corporate tax rates will be higher than individual tax rates; therefore, having the business make the contribution will give you bigger tax savings.
A Gift of Appreciated Property
By appreciated property, we are talking about assets that have gone up in value, and when sold, you would have to pay tax on the gain. The most common types of appreciated property are stocks, bonds, and mutual funds; however, appreciated property can also include real estate, art, jewelry, antiques, and collectibles. By making a gift of appreciated property, you receive an income tax deduction for the market value of the appreciated property and avoid paying income tax on the gain. As an example, you bought a stock 5 years ago for $5,000.00. Today the stock is worth $10,000.00. If you sold the stock you would pay capital gains tax on the $5,000.00 gain. By gifting the stock to Bethany Academy, you would receive a tax deduction of $10,000.00 and avoid paying capital gains tax on the gain.
Additional Gifting Opportunities
There are ways to give by bequests made in a will, gifting a life insurance policy, or establishing a trust where Bethany Academy receives the money, and you receive an income. Everyone’s situation will be different so please consult with your financial or tax advisor to determine the best way to give based on your circumstances.