Tax Advantages Available Through Giving to
The Center for Advancing America's Heritage
For the past few years our National Society has been raising funds for a new facility to house our Gallery, Outreach Education Department, Genealogical Library and H1/18/2009eadquarters of the Sons of the American Revolution.
The Center for Advancing America's Heritage (The Center) will be more than just a building. It is anticipated that it will be a center for learning. We envision that the Sons of the American Revolution will become the guardians of our history and heritage for future generations. At this point we anticipate the need to raise six million dollars to move forward on the renovation of the building we have just purchased. We have approximately 2.6 million in hand towards this goal.
Please consider this information as both a sincere request that you dig deep into your pockets, and a listing of some ways to take the sting out of your gift.
CASH : The simplest way to participate is to make a cash contribution, for which you will receive a tax deduction for your charitable contribution, as we are a 501(c)(3) nonprofit charitable corporation. Total contributions may not exceed 30% of adjusted gross income in any given year. Many members pledge to make payments over a period of five years, thereby making it easier to make a substantial gift.
Appreciated securities : As we watch the current stock market carefully, remember that in late October 2006, the Dow reached record breaking highs. Many of you have stocks and bonds or mutual funds that were purchased several years ago which are still worth substantially more than you paid for them. When you sell these stocks you will be forced to pay a capital gains tax on the profit. If you donate these appreciated securities you have owned for a minimum of 12 months you will benefit in two ways: 1) You will avoid paying the capital gains tax and 2) You receive a tax deduction for the full market value of the security on the date it is donated. Some tim es, you make money on the transaction. If the value of the proposed gift is more than 30% of your adjusted gross income, the gift can be set up over two or more years to help you maximize the tax advantages of the gift. If you live in a state with an income tax, you may receive similar benefits on your state tax return.
Appreciated Coin and Stamp Collections and Works of Art : The same rules apply as to gifts of appreciated securities. If you are downsizing, or if your children are not interested in your collections, consider donating them to the SAR Foundation. You should have the objects' to be donated professionally appraised to nail down the amount of your donation. The Foundation may then sell the collection and donate the proceeds to The Center project.
Appreciated Real Estate : Although the same tax rules apply to the donation of real estate, the transaction must be consummated by execution of a deed by you to the SAR Foundation. It would also be prudent on your part to have the property appraised by a licensed real estate appraiser immediately prior to the gift. This can be residential land, vacant city lots, commercial property, farm or ranch land etc. The SAR would benefit from the sale of the land.
Life Insurance : Here you simply make the SAR Foundation both the irrevocable owner and beneficiary of an existing whole life insurance policy. The deductible amount is the cash surrender value of the policy at the time of the gift. You may also deduct the full amount of any premiums you pay on the policy after the donation.
IRA Funds : You can once again transfer funds from your IRA to the SAR Foundation without paying any taxes on those dollars. Recently passed by Congress, this provision is retroactive to January 1, 2008 and extends until December 31, 2009. So, if you are 70 1/2, you can make plans now to rollover a maximum of $100,000 through 2009.
By contributing directly, the donor avoids recognizing the donated amount as income, thereby avoiding including the amount in adjusted gross income which reduces the value of itemized deductions.
Last Will and Testament : Even if your estate will not be subject to Federal Estate Tax, it may be subject to your state's inheritance tax. By leaving a bequest in your will to the SAR Foundation, Inc. you may receive a deduction from the applicable inheritance tax plus your estate will be allowed the same deduction from your final income tax return for the year of your death. What better way to show that you are a loyal SAR member? You don't have to go to the expense of completely redrafting your will. Your bequest could be handled in a simple Codicil to your will. Many SAR lawyers in your state would probably draft that Codicil for you free of charge, or for a nominal fee.
In addition to your tax deduction, please keep in mind that naming right opportunities will be available for those pledges fulfilled.
Please note that the material above is not intended to be legal, tax or accounting advice. For most of these types of contributions you will wish to contact your trusted financial advisor to set in motion, however if you have any questions please contact Laurie Anne Roberts, Development Director for the SAR Foundation at 502.315.1777 or firstname.lastname@example.org
With your help we will have our new Center and our National Headquarters up and running in no time. Please make your donation now!
Judge Ed Butler, NSSAR Secretary General