All cash donations to the Salem Parks Foundation are tax deductible, up to 50% of your adjusted gross income. Cash gifts are the most common form of giving and simply involve writing a check to the Salem Parks Foundation. Checks can be mailed to PO Box 5764, Salem, OR 97304.
The tax benefits available for gifts of appreciated real estate are virtually identical to those for gifts of appreciated securities. First, you avoid capital gains tax on your profit. Second, you receive an income tax charitable deduction for the full fair market value of the property you contribute. Gifts of appreciated real property, such as undeveloped land, farms or personal residences may be transferred by deed with no liability for income or estate taxes on the appreciation.
If marketable securities have grown in value, the tax laws allow for donations at a low after-tax cost. A gift worth $100,000 could cost as little as $32,400. A lifetime donation of appreciated securities often qualifies for income tax deductions associated with charitable gifts and avoids the long-term capital gains tax on your paper profit. If appreciated securities are given to a qualified charitable organization, there is no tax on your gain, even though your "profit" is counted as part of your charitable deduction.
Antiques, paintings and other "collectibles", such as patents and copyrights, can be valuable assets for giving. In many cases, the same favorable tax rules apply to these gifts as apply to securities and real estate.
If your family has grown and you find you no longer need a life insurance policy for its original purpose, the cash value of the policy can be donated to the Salem Parks Foundation. By making the Salem Parks Foundation owner and beneficiary of the policy, as you continue to pay the premiums, you will gain additional tax deduction savings for the premiums you pay in future years. These savings can be passed on to your beneficiaries to benefit Salem Parks. If you are interested in this option, contact your insurance company for the forms to change both the beneficiary and the ownership designations. The policy should then be sent to the Salem Parks Foundation, PO Box 5764, Salem, OR 97304.
Temporary Gifts
It's possible to contribute merely the income from securities or other property temporarily and enjoy substantial income tax or gift and estate tax benefits. This option is also known as a charitable lead trust. You transfer income producing property to a trust for a number of years, and later the property either comes back to you or goes to family members or other beneficiaries. The trust income is paid to the Foundation while the trust is in force.
Suppose Dorothy, age 50, is the beneficiary of a trust created by her parents. The trust is worth $100,00, and Dorothy receives about $8,000 a year in trust income. She keeps only $5,520 a year after taxes in her 31% income tax bracket. She would prefer that the income be paid for the parks benefit. She has two alternatives. She could simply give the Parks Foundation the trust income each year and deduct the $8,000 as a charitable contribution. Or, the second alternative is to transfer the life income interest to the Foundation, and it would receive the trust income until her death.
Charitable Remainder Unitrusts
A unitrust is an arrangement in which you place money or property with a trustee, and give instructions to pay someone income for life. The income will be a set percentage of the trust's value, which may change from year to year. When the person receiving the income dies, the property remaining - the "remainder" - can pass to a named charity.
You can make a gift for the Parks future benefit and retain fixed lifetime annuity payments for yourself and others.
If you own your own home, farm, or even a vacation home you may be able to make a gift of property, obtain an immediate income tax deduction and still continue to use the property for as long as you wish. Simply give the property to the Parks Foundation, but retain the right to use it for your life. You can continue to live there just as before. Only after your death will the Foundation assume usual ownership rights in the property.
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