WHY NOT GIVE DIRECTLY TO A CHARITY?
With the many solicitations being made by mail, phone and door to door to our local citizenry, it is difficult for the average person to determine what is a worthy or viable charitable organization. None of us want the frustration of contributing hard earned money only to later find the donee is now defunct. Nor do we want to find out after making a contribution that only a small percentage actually went to the cause. Gifts to the Foundation seek to avoid this problem.
Perhaps
the questions and answers that follow will be os some assistance in help
you make your decision.
QUESTION:
I have stocks and income
producing real estate that are worth a great deal more than I paid for
them. Should I sell them and give the proceeds to the Foundation or give
the properties directly to the Foundation?
ANSWER:
The latter is better. If you
sell your stocks or real estate and give the proceeds to the Foundation,
you will have to pay approximately one-fourth of the increased value in
capital gains tax. But if you transfer the assets directly to the Foundation,
you will not have to pay that tax and your entire capital sum is a deduction
for you.
QUESTION
May I give my home to the Foundation; yet reserve the right to live in
it during my lifetime?
ANSWER:
Yes, indeed. And you may also elect to give it in installments, so as
to get your maximum charitable deduction each year.
QUESTION:
Which of the several types of giving would be best for my particular circumstances?
ANSWER:
See your attorney or accountant or permit an officer of the Foundation
to discuss this matter with you. Laws are too complex and situations vary
too much to state general rules.
After the bequests in my Will are taken care of, an indefinite amount of money will be left over. Is it possible to will the Foundation that indefinite amount?
ANSWER
Yes. The Foundation may be named "contingent remainderman" by
providing that any portion of the estate not disposed of under provisions
of a Will or testamentary trust shall be distributed to the Kiwanis of
Oceanside Pacific Foundation, Inc.