More Ways to Contribute
Appreciated securities are securities that are worth more today than when they were acquired. Capital gains are the difference between a security’s current value and the original security’s cost, the value it had when it was acquired. Your gift of securities entitles you to a donation receipt for the full market value of your contribution. Your contribution will result in a non-refundable tax credit that will reduce your income taxes. You can use it in the year of your contribution or apply it for up to five additional years.
Bequests are gifts which are a part of a will or trust. A bequest may be made to a person, or it can be a charitable bequest to a nonprofit organization like Cops Direct. Bequests can be simple, “I bequest $10,000 to Cops Direct” or with conditions regarding how the bequest may be utilized.
Charitable Gift Annuities
A contract between a donor and Cops Direct. As a donor, you make a sizable gift to Cops Direct using cash, securities or other assets. In return, you become eligible to take a partial tax deduction for your donation, plus you receive a fixed stream of income from Cops Direct for the rest of your life.
Offering a discount off a sale price and the seller donating in the name of the buyer. (i.e., Sale price of home is $500,000. The seller donates a portion of the profit to Cops Direct).
Donor Advised Funds
A charitable investment account, for the sole purpose of supporting Cops Direct. When you contribute cash, securities or other assets to a donor-advised fund at a public charity, you are eligible to take an immediate tax deduction. Then those funds can be invested for tax-free growth and you can recommend grants to Cops Direct. When you give, you want your charitable donations to be as effective as possible. Donor-advised funds are the fastest-growing charitable giving vehicle in the United States because they are one of the easiest and most tax-advantageous ways to give to Cops Direct.
A Charitable Lead Trust (CLT) is a gift of cash or other property to an irrevocable trust. Cops Direct receives an income stream from the trust for a term of years. Depending on how the trust is structured, Cops Direct receives income, gift, or estate tax deduction on the donated assets.
NOTE: Irrevocable Trusts refers to a type of trust where its terms cannot be modified, amended, or terminated without the permission of the grantor’s beneficiary or beneficiaries. Irrevocable trusts are set up to minimize estate taxes, access government benefits and protect assets.
Life Insurance Policies
Charitable giving riders pay a specific percentage of the policy’s face value to Cops Direct. Gifting a life insurance policy can cut the donor’s taxable estate. Naming Cops Direct as the beneficiary of your life insurance policy is the simplest way to provide Cops Direct with the death benefit proceeds from a policy.
Cops Direct can accept diverse types of personal property. Cars, boats, office equipment, re-sellable assets, etc. are all acknowledged as donations as a tax deduction as a gift-in-kind.
Pooled Income Funds
A type of Charitable Trust established and maintained by Cops Direct. A Pooled income fund is a type of charitable mutual fund created from securities or cash donated by an individual, a family or a corporation to Cops Direct, which is invested to provide dividends for both the donor and Cops Direct. The donations are irrevocable and tax-deductible and must be from personal assets. Donor’s may qualify for an immediate partial tax deduction, based on their life expectancy and anticipated income stream, but they must pay income tax on the income stream from the fund each year.
Qualified Charitable Distributions
A Qualified Charitable Distribution is a direct transfer of funds from your IRA custodian, payable to Cops Direct. The donation may be counted toward satisfying your Required Minimum Distributions (RMDs) for the year if certain rules are met. In addition to the benefits of giving to Cops Direct, a Qualified Charitable Distribution excludes the amount donated from taxable income, which is unlike regular withdrawals from an IRA. This keeps your taxable income lower and may reduce the impact to certain tax credits and deductions, including Social Security and Medicare.
You can deduct the full fair market value of the donated property. Your charitable contribution deduction is limited to various percentages of your adjusted gross income. Excess contribution value may be applied for up to five years.
Charitable Remainder Annuity Trusts
A Charitable Remainder Annuity Trust (CRAT) is a type of tax-exempt gift transaction in which a donor contributes assets to a charitable trust which subsequently pays a fixed income to Cops Direct. After the trust term ends, Cops Direct receives the remainder of the assets in the trust. The year you establish the CRAT, you receive an income tax charitable deduction.
A Charitable Remainder Unitrust (CRUT) provides income to a named beneficiary during the grantor’s life and then the remainder of the trust to Cops Direct. The donor or members of the donor’s family are usually the initial beneficiaries.
Retained Life Estates
A gift plan which allows an individual to donate her home or farm to Cops Direct while retaining the right to live in it for the rest of their life.
Donate your IRAs, 401(k)s and 403(b)s, by cashing them out, paying the income tax attributable to the distribution and then contributing the proceeds to Cops Direct. There is little to no tax benefit associated with this type of donation. However, a direct contribution of retirement assets to Cops Direct as part of an estate planning strategy can be very tax efficient. In some situations, it can mean more funds for Cops Direct and your heirs. There can be significant tax advantages to donating retirement assets to Cops Direct as part of an estate plan. When done properly, charitable donations of retirement assets can minimize the amount of income taxes imposed on both your individual heirs and your estate.