Appreciated Securities Making a Difference Frequently Asked Questions The Decision-Making Process Setting up a Gift of Securities This information is of a general nature only. For specific legal advice
and assistance, you should contact your own attorney. Have you ever wondered if you could make a gift other than cash to support the ministry
of evangelism? You can give almost any kind of property and do it in many different ways.
But some of the greatest tax benefits will be available to you if you give securities
worth more than you paid for them. Giving can be a rewarding experience for you and for us at the Barakel Foundation, Inc.
(Barakel). Your gift gives you the satisfaction of supporting an organization that
is actively involved in evangelism. Also, it is encouraging to us because part of
our ministry is devoted to helping people like you discover and enjoy the stewardship of
giving wisely and effectively. Because we are devoted to helping people give wisely and effectively, we understand
that effective giving means careful planning. It makes a difference to you and to us
because your tax benefits and our ministries are affected by the way you plan your giving.
What you give and how you give are important questions to answer. Therefore, to better
understand how a gift of securities may affect you and Barakel, let's begin by answering
these questions. Frequently Asked Questions You can give almost anything you want to give: certificates of deposit, stocks, bonds,
mutual funds, real estate, collections, your home, a farm, or other items of value. The gift of appreciated securities may offer significant tax advantages that
other assets may not provide. Generally, when you sell securities that have gone up in value, you pay a tax on the
profit. However, when you give those securities to Barakel, you don't pay any tax
on the profit. You also get a charitable contribution deduction on your tax return for the
entire value of those securities if they are considered long-term gain assets. Here's how this works: Suppose you bought 50 shares of a stock ten years ago for $1,000. Now that stock is
worth $5,000. If you sell it and give the $5,000 cash to Barakel, you'll get the $5,000
charitable contribution deduction but you'll also pay income tax on your $4,000 profit. There is a better way! Don't sell! If you simply transfer ownership of the securities to Barakel, you get the same $5,000
contribution deduction and you don't pay any tax on the gain! You can also give corporate bonds, government bonds, and other securities besides
common stock. If the value of these securities has gone down instead of up, then sell before giving
your gift of the proceeds to Barakel. You get a deduction for your capital loss plus a
charitable contribution deduction for the sales proceeds. If you gave the securities to
Barakel rather than selling first, you would not get the capital loss deduction. You can give as much as you wish! However, the tax law does specify exactly how much of
your contribution you can deduct from your income. Generally, you can deduct up to 50% of your adjusted gross income in any one year. If
you give more than that, you can carry over the excess up to five years. However, if you give appreciated securities held long term, your contribution is
generally limited to 30% of your adjusted gross income. The carry-over rules apply here
also. If you need the income your securities provide yet you want to give those securities to
Barakel, you can retain an income for life in return for your gift. Here's how... With A Gift Annuity Go to Gift Annuity Section With A Charitable Revocable Living Trust With A Charitable Remainder Unitrust or Annuity Trust Go to Unitrust Section 5. How Can I Give Securities at My Death? If you prefer to control and manage your securities and other property and give them to
Barakel at your death, you can make that gift either through your Will
or through a "Payable on Death" account at some security brokerage firms. You will not receive a charitable contribution deduction on your income tax returns,
but you will certainly reduce the amount of your estate that may be subject to tax. Assets
in a "Payable on Death" account will also avoid probate. You can be assured that
Barakel will eventually be able to use your gift for the ministry of evangelism. What are the primary considerations in making a gift of securities? One consideration is assessing whether you need the income your securities now provide.
If so, there are a number of ways you can give securities to the Barakel Foundation, Inc.
and retain a life income in return for your gift. Once you've determined whether you need the income your securities provide, the next
step is selecting the plan that would be best for you. Because selecting the right plan
depends on your individual situation, you may want to ask yourself a few questions. Would
it be meaningful to have a plan by which the income is retained for you or a loved one?
Would you benefit from claiming a charitable contribution deduction on your income tax
return or would you need to have access to the principal? A second consideration is the need to give a gift to support something you believe in.
A gift of securities is a unique opportunity to give a gift--other than cash--that will
make a difference in accomplishing the work of God through this ministry. Do you desire to
make a difference, and do the ministries of the association connect with this need you
feel? Would you be blessed to know that your gift enables others to come to know Christ? If this is your desire, we want to be of assistance to you in making a gift of
securities. Selecting the right plan depends upon your individual situation. We would be
happy to help you and your advisors explore the available options in charitable gift
planning. If you have questions and would like to talk to one of our representatives about
a Real Estate Gift, please contact our office via mail or e-mail at: The Barakel Foundation, Inc. email: info@barakel.com The purpose of this section is to provide information of
a general nature only. For specific legal advice and assistance, you
should contact your own attorney. |