MAKE A GIFT
Gifts of Cash
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You're considering an outright gift made during your lifetime > You want to maximize your charitable deduction > You want to deliver benefits to the AADC immediately |
Gifts of cash can be deducted against a larger portion of your taxable income than gifts of appreciated assets. Cash is the simplest donation and provides immediate benefits to Associate Alumnae of Douglass College. Your gift can be made outright or can fund one of our life income arrangements.
The IRS allows you to claim charitable deductions for gifts of cash up to 50 percent of your adjusted gross income ("AGI" -- the figure at the bottom of the first page of Federal Income Tax Form 1040. See Glossary for full definition.) Alternately, if you use appreciated property instead of cash to make your gifts, you can claim deductions up to only 30 percent of AGI. Although excess deductions may be claimed over the five years after the gift is made, if you are looking for substantial immediate tax deductions you may be better served giving cash instead of property:
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Gift of |
Gift of Appreciated |
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Donor’s AGI |
$300,000 |
$300,000 |
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Amount of gift |
$200,000 |
$200,000 |
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Asset donated |
Cash |
Stock |
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Total charitable deduction |
$200,000 |
$200,000 |
| . |
Deductible against % of AGI |
50% |
30% |
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Deduction in 1st year |
$150,000 |
$90,000 |
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Net taxable income, 1st year |
$150,000 |
$210,000 |
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Net tax in 1st year @35% rate |
$52,500 |
$73,500 |
| . |
Carryover deduction |
$50,000 |
$110,000 |
If you are considering a gift of cash, email us, complete the personal illustration form, or call us at 732-246-1600 so that we can assist you through the process.
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