Gifts of Stock
Are you thinking of selling some stocks or bonds? You might want to consider using them to make a charitable gift... here’s why:
Appreciated Stocks and Bonds
A charitable, tax-exempt organization can accept gifts of appreciated stocks and bonds and sell them without triggering capital gains taxes. This can benefit you in two ways:
You can make a gift that is worth more than it cost you to produce. Example: You purchased stock for $100 that is now worth $500. Your $500 stock gift only cost $100 to produce.
You can take an itemized charitable tax deduction for the full value of the gift.
Depreciated Stocks and Bonds
You can also use stocks and bonds that are now worth less than you paid for them to make a charitable gift and still be in a "win-win" situation. If you sell the stock or bond and donate the proceeds to High Plains Public Radio, you will get an itemized charitable tax deduction for the full value of the gift, and you may also be able to take the capital loss on the asset.
Life Insurance
Naming High Plains Public Radio as a beneficiary of a new or existing life insurance policy is a straightforward, readily understood way to channel financial support to us. By designating a portion of your life insurance for charitable purposes you can make a significant investment in the future of High Plains Public Radio without taking any assets or current income away from yourself or your family! The real beauty of this method is that it works with whatever type of policy you have, whether it’s a privately owned policy or group insurance from your employer.
Estate Planning
This can include many things... wills, trusts, and investments to name a few. The charitable trust provides you and your family a lifetime income by taking cash or capital assets such as stocks, real estate and second homes and putting them to work for you. Your other investments might actually be working against you. Why? Because the charitable trust protects the full value of your asset since it bypasses the requirement to pay capital gains taxes.
Here's how it works . . .You transfer cash, stock or real property to your private charitable trust. As the trustee, High Plains Public Radio sells any non-cash asset in the trust and invests all the cash to make an income. Each year for life, you and the other designated beneficiaries of the trust are paid either: an exact sum (fixed annuity), or a percentage of the value of the trust (variable annuity).
When the last beneficiary has passed away, the trust principal passes to High Plains Public Radio to continue our mission of bringing quality public radio to the citizens of the High Plains. In addition, the IRS allows you to take a charitable income tax deduction for the present value of the trust in the year that you establish it. If you have transferred a capital asset to the trust, you will not be required to pay capital gains taxes on the appreciation because the trust is tax-exempt.
