IRA Charitable Rollover: Individuals age 70-1/2 or older can roll over up to $100,000 from their IRA directly to not-for-profit organizations. The IRA charitable rollover rules allow taxpayers age 70-1/2 or older who are required to withdraw money from their IRAs to give directly to a charity to satisfy their minimum distribution requirements for the year. While you won’t receive a tax deduction for a direct rollover gift, you also won’t pay any income tax on the transfer. Note this only applies to IRAs and not to other retirement accounts like 401(k) plans.
Recurring donation: Become a guarantor of the Handel Choir by setting up a recurring donation on a monthly or annual basis. Call Cynthia Bell at (667) 206-4120 to learn more.
Make a bequest: Bequests are gifts left by will. This is the most common type of deferred gift. Most bequests are written for a specific amount, a percentage of the total estate, or the remainders after specified conditions are met. A bequest may include cash, securities and other assets of the donor’s choice.
Make a gift of securities: When you own securities (including mutual funds) with a long-term capital gain and donate them to Handel Choir, they are received at the current fair market value. The full fair market value of the securities may be deducted as a gift on your federal income tax return, avoiding all capital gains tax.
Property (real or personal): You may donate real estate outright or retain a life-estate contract. If a life-estate gift is irrevocable, you may obtain certain immediate tax benefits, and you can continue to live on the property for the rest of your life. Other types of property include rental or business real estate (either as an outright gift or retained life income); business inventories, assigning royalties for minerals, inventions, or copyrights, agricultural resources, antiques and paintings and other works of art.
Make a pledge: Outright pledges of cash, securities or property to Handel Choir of Baltimore may be paid over a five-year period to take advantage of maximum charitable deductions and income tax provisions or extended over a longer period as agreed between the donor and Handel Choir.
Life insurance gifts: The most common type of life insurance gift is an assignment of an existing policy that is currently in force or paid up. The donor names Handel Choir of Baltimore owner and beneficiary. The benefits to the donor are both in the gift and estate tax considerations. In a gift of a policy that is not paid up, later premium payments are also deductible for tax purposes.
Create a charitable income lead trust: The donor transfers money or property to a trustee who makes payments for a specified number of years. Then the principal is returned to a designated non-charitable beneficiary, usually a family member. Gift and estate tax charitable deductions take effect if the trust takes the form of either a unitrust or an annuity trust.
Create a charitable remainder unitrust: Created by a donor transferring cash, securities, or other assets to a trustee in exchange for the trustee’s agreement to pay Handel Choir of Baltimore income that is equal to at least 5% or more of the net fair market value of the trust assets as determined annually. The trust will terminate at the death of the last of the beneficiaries, and the corpus and accrued income will be distributed to Handel Choir of Baltimore. An immediate income tax charitable deduction is allowed for the remainder value.
Create a charitable remainder annuity trust: Established by a donor transferring cash, securities, or other assets to a trustee in exchange for the trustee’s agreement to pay a fixed sum of money to named beneficiaries, said amount to be at least 5% or more of the initial fair market value of the trust assets. The rate could be higher-an amount agreed upon by the donor and the trustee. Once established, the annual amount never changes. Payments are made to the donor/beneficiary or to anyone designated for life or a period of time not to exceed twenty years. At the death of the last beneficiary or the expiration of the term of years, the trust will terminate and the assets will be distributed to Handel Choir of Baltimore. An immediate income tax charitable deduction is allowed for the remainder value.
Handel Choir of Baltimore is a 501(c)(3) non-profit organization. Donations are tax deductible to the extent allowed by law. A copy of Handel Choir’s current financial statement is available by calling (667) 206-4120 or writing to the address below. Documents and information submitted under the Maryland Charitable Solicitations Act are also available for the cost of postage and copies by calling (410) 974-5534 or writing to: Maryland Secretary of State, State House, Annapolis, MD 21401