You can donate cash in a lump sum. Alternatively, you can make cash donations as pledged, quarterly or monthly. If you wish, we can set up an automatic donation, made directly from your credit card, on a regular basis. In accord with your plans, we can also set up an automatic charge directly to your bank account, on a similar, recurring basis.
Your contribution to American Catholic Press is tax deductible in the year in which it is paid. (As you may know, your deduction for the current year is limited to 50% of your adjusted gross income. Any cash donation in excess of 50% of your adjusted gross income can be treated as a carry-forward deduction, to be used up in the following five years.)
To encourage charitable giving, many employers offer matching gifts. You may wish to check with your Human Resources Department at work, to see, for example, if you can double your donation and do twice as much good.
The most common form of appreciated property given to charities is marketable securities: stocks, bonds, or shares in a mutual fund. If you give appreciated securities to American Catholic Press, you can claim a deduction for the full fair market value of the securities on the day your gift is made, up to 30% of your adjusted gross income. Again, by this means, you can increase the value of your donation. Although an alternative minimum tax may be applicable, you pay no capital gains tax on the appreciation of your securities. In this way, you also save on taxes.
As you wish, you can also donate a car or other motor vehicle to American Catholic Press. The IRS has special rules governing such a donation. Probably, unless it is vintage, a used car will have depreciated in value, as you know.
This is a common method of support. American Catholic Press is especially grateful to those who have remembered our work in this way. As you wish, you may specify a given sum or a percentage of your beneficiary estate, as you think best. You can also name American Catholic Press as a contingent beneficiary if your heirs predecease you. For estate tax purposes, the value of your bequest to American Catholic Press is fully deductible.
We have three brochures to help you make a bequest: Giving beyond Living, How to Make a Will that Works and How to Put American Catholic Press in Your Will. You can request these brochures from us at [email protected] or (708) 331-5485.
Gift of Residence with Retained Life Interest
In this case, you donate to American Catholic Press your personal residence, farm, cottage, condominium, or a partial interest in such property. At the same time, you retain a life interest for yourself or for your spouse and yourself. You continue to live at your home and maintain the property, as you would anyway.
Such a gift can have several advantages for you, for both income tax and estate tax. For one thing, you receive a charitable deduction in the year you donate the property to American Catholic Press. For another advantage, for estate tax purposes, the property is removed from your taxable estate. When both you and your spouse are deceased, the property passes to American Catholic Press directly.
When you make a gift of a whole life policy that is fully paid, your charitable deduction is measured by the policy's replacement cost or your cost basis, whichever is less. If the policy is not fully paid, your deduction is approximately its cash surrender value; the deduction, however, cannot exceed your cost basis.
Normally, you can deduct future payments on a policy named to American Catholic Press as the owner and beneficiary.
If you want to guarantee a major gift and want to make it over a period of years, you can purchase a new insurance policy with American Catholic Press as the owner and beneficiary; you would then pay the premiums each year. This plan makes it possible for you to make a major, deferred gift to American Catholic Press, with a predictable annual payment.
Your attorney can advise you, with regard to charitable remainder trusts, charitable lead trusts, and testamentary trusts.
If you have an Individual Retirement Account (IRA) or a Roth IRA Account, you can name American Catholic Press as a primary or contingent beneficiary. Also, a percentage of death benefits can be designated as payable to American Catholic Press. The same is true of pension plans and profit sharing plans, subject to the rights of your spouse. You can also, as you wish, remember American Catholic Press in your 401k plan.
The legal name of ACP is "American Catholic Press," a not-for-profit corporation of the State of Illinois. (The three words, not the "ACP" acronym, are the legal name.) Our federal tax identification number is 36-2755136. You don't have to add "Inc." or any other suffix of that nature.
On the one hand, the federal tax code encourages such donations. Any gift you make may result in substantial tax benefits to you, as a donor. On the other hand, the nature and extent of any such benefits depend on the manner in which your gift is made. Your greatest reward for your kindness will be in the kingdom of heaven.