The Tax laws intentionally encourage charitable giving. Because of the income tax charitable deduction, anyone who makes a gift by December 31, and itemizes, can reduce the anguish of taxes come April 15. So, as you consider your year-end tax planning, we hope you will consider making good use of your income tax charitable deduction to support our on-going activities.
Giving of course is much more than tax deductions. Your gift will help to create real changes in the lives of Baja's orphaned and impoverished children. The task at hand is larger than any one Genesis Program, we want to help all these children become contributing members of their society. To accomplish this we need your help.
No one site can tell you everything you need to know about year-end gift opportunities and which method would be best for your situation. Genesis International Orphanage Foundation is not in the business of rendering tax advice, therefore you should consult your accountant, tax attorney, or other tax advisor for counsel.
Gifts of Cash
If itemized, your outright gifts are fully deductible for federal income tax, up to 50% of adjusted gross income. Any additional over the limitation can be carried forward for up to five years.
Gifts of Stock
A gift of long-term appreciated stock offers a two-fold tax saving benefit. You will avoid paying capital gains on the increase of the stock when it is gifted before you sell it. You will receive the full market value of the stock on the day of donation. The gift can be deducted up to 30% of adjusted gross income, with a five year carry forward.
Gifts of Real Estate
The gift of a home, farm or acreage that has been owned for many years may be of special tax advantage. If the property is given out right you can avoid paying capital gains on the appreciated value of the property. You would still receive a deduction for the full fair market value of the property.
Charitable Remainder Trust (CRT)
When a charitable remainder trust is established, a gift of cash or property is made to an irrevocable trust. The donor (and/or another non-charitable beneficiary) retains an annuity (fixed payments of principal and interest) or a fixed percentage of the fair market value of the trust for a specified number of years or for the life or lives of the non-charitable beneficiaries. At the end of the term, the qualified charity specified in the trust document receives the property in the trust and any appreciation. The donor to the trust receives a charitable donation in the year the trust is funded for the calculated present value of the charitable remainder interest. A qualified Attorney should be used to create the trust.
Gifts of Life Insurance
If you have a policy that is not needed any more, give it to us. Name Genesis Expeditions as owner and beneficiary of the policy. You can deduct about the equal amount of the cash value of the policy at the time of donation. If you continue to pay premiums, those Premiums become tax deducible each year.
Gifts of Life
Income With a life income gift, you can transfer assets over to Genesis and still receive income for the gift. These gifts can increase your life income, help you avoid capital gains tax, and give you a generous deduction.
Bequests
We hope you will consider a bequest in your will. This can save up to 55% in federal estate tax. Genesis can be named as a beneficiary of your will in any number of simple ways. Most of the time a simple amendment can be done, thus a redraft of your will is not necessary.
Material Property
If you have a used or new car, boat or other form of luxury item that you no longer need and could use a tax credit more than cash, consider donating it to Genesis. Large ticket items can be converted into all kinds of useful resources for Genesis.