How to ContributeWhen most people think of making a gift, they think of writing a check or giving cash, but other assets may provide greater advantages in terms of tax avoidance, net cost, and eventual charitable impact.
In this section, we provide information that can answer some frequently asked questions regarding making gifts to the Foundation. In addition to reading the information offered here, we encourage you to consult with your financial advisors and the Foundation Office to determine the most advantageous ways for you to fund a gift. |
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Kinds of Assets to Give
There are many kinds of assets you can give to the Foundation, including cash, securities, property, retirement funds, and insurance. Each kind of asset offers unique benefits and has slightly different procedures for donation.
There are many kinds of assets you can give to the Foundation, including cash, securities, property, retirement funds, and insurance. Each kind of asset offers unique benefits and has slightly different procedures for donation.
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Cash
A gift of cash may be made as either a one-time contribution to The Tuomey Foundation, or as a pledge to be paid on a schedule determined by the donor. If you want to make a commitment to a gift in the future and would like a gentle reminder at that time (Next December? The end of your fiscal year?), please indicate. Checks may be made out to: The Tuomey Foundation 102 North Main Street Sumter, S.C. 29150. Credit card gifts may be made over the phone by calling the Foundation office at (803) 774-9014. |
Retirement Funds
Retirement funds seem to be the best-kept secret in gift planning. Gifts from these assets often make better financial sense to the donor than gifts of cash, securities or property. As always, talk with your advisor and the Foundation office before making a gift. In the years since IRAs, 401Ks and other personal retirement plans were established, many people have deposited significant funds. Your retirement funds may well be a very significant part of your estate now. In your estate, those funds will be taxed more heavily than others and it may make good sense to commit those to your favorite charitable institutions instead of other funds. In some estates, retirement funds can face taxes as high as 80%, leaving little for heirs. You are encouraged to seek advice from an attorney or CPA not only about what to give away, but also about which assets are better to keep in the family. |
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Securities
Many people find it preferable, from a tax standpoint, to make gifts of securities (stocks or bonds) which have risen in value since the time they were purchased. Such "appreciated securities" have two advantages: you can deduct the full value on the day they are given, and you will avoid capital gains tax on their growth. If you have some shares you are reluctant to part with (a favorite old holding, a family company), talk to us about how to give them, take your deduction, and buy them back later at a stepped-up basis to decrease your tax exposure. There are two ways to make gifts of securities: you may have your broker or mutual fund company transfer them directly to The Tuomey Foundation’s account, or you can mail them (unendorsed) to the Foundation office. In either case, you may want to contact a tax attorney and/or your financial advisor before you call the Foundation office to ensure the transfer is done safely and effectively. We can be reached at (803) 774-8664. |
Property
Personal property that has gained in value since you acquired it (such as real estate, works of art or rare books) can be an especially effective way to make a gift. The tax rules supporting such gifts are a bit more complicated than those for cash or securities, so please call us in the Foundation office so we can work closely with you and your advisors to help you make a choice that feels good and works well. Many people make important gifts this way, especially of real estate. Here is a creative way to make a wonderful gift: you can give your home to The Tuomey Foundation, take a substantial tax deduction right away, stay in your home for the rest of your life, and designate the future use of your gift for the project of your choice. If you are interested in further information, please call (803) 774-8664. |
Insurance
Have you reached a point in your life where you don't need your life insurance anymore? The insurance coverage you have developed over the years may now be valuable enough to cause some large estate taxes which, if you still own the policy, will be expensive to your heirs. A gift of a life insurance policy provides a particularly appealing way of making a substantial gift to The Tuomey Foundation. It allows us to acknowledge and recognize the donor now, it allows the donor to make a larger gift than would normally be possible from current income, and it puts to good use assets that are becoming less important to you. To make this gift deductible, it must be irrevocable and The Tuomey Foundation must be named the owner and beneficiary of the policy. If your gift is of a paid-up (with no additional premiums to be paid) life insurance policy, you will receive an immediate income tax deduction generally equal to the sum of the premiums you have paid. If it is a policy on which you are still paying premiums, your deductions will be different but still very advantageous. As always, we encourage donors to discuss with us the future uses of their gifts and their choices for naming opportunities.
Here is another important use for life insurance in your charitable decisions: wealth replacement. If you make a substantial gift to charity, you are often reducing the amount of your assets that will go to your heirs. Increasingly, major donors are using some of their tax savings (from their charitable deduction) to purchase an insurance policy on their own life and make their heirs the owners and beneficiaries of that policy. When properly constructed, this wealth replacement strategy can permit both a larger gift and a larger legacy for your children. Please give us a call to discuss this and other charitable strategies (803) 774-8664.
Have you reached a point in your life where you don't need your life insurance anymore? The insurance coverage you have developed over the years may now be valuable enough to cause some large estate taxes which, if you still own the policy, will be expensive to your heirs. A gift of a life insurance policy provides a particularly appealing way of making a substantial gift to The Tuomey Foundation. It allows us to acknowledge and recognize the donor now, it allows the donor to make a larger gift than would normally be possible from current income, and it puts to good use assets that are becoming less important to you. To make this gift deductible, it must be irrevocable and The Tuomey Foundation must be named the owner and beneficiary of the policy. If your gift is of a paid-up (with no additional premiums to be paid) life insurance policy, you will receive an immediate income tax deduction generally equal to the sum of the premiums you have paid. If it is a policy on which you are still paying premiums, your deductions will be different but still very advantageous. As always, we encourage donors to discuss with us the future uses of their gifts and their choices for naming opportunities.
Here is another important use for life insurance in your charitable decisions: wealth replacement. If you make a substantial gift to charity, you are often reducing the amount of your assets that will go to your heirs. Increasingly, major donors are using some of their tax savings (from their charitable deduction) to purchase an insurance policy on their own life and make their heirs the owners and beneficiaries of that policy. When properly constructed, this wealth replacement strategy can permit both a larger gift and a larger legacy for your children. Please give us a call to discuss this and other charitable strategies (803) 774-8664.
