Tax-Wise Planning

IRAAssets

A Gift of IRA Assets

For several years donors who were 70 ½ or older could make a direct gift from their IRA account to the Society of the Little Flower as part of their required minimum distribution.  As of yet, that law has not been renewed.  However, it can still make sense to use an IRA distribution for charitable giving.

Although, at present, the distribution would be considered ordinary income, making a direct gift to the Society with these funds would allow you a full charitable tax deduction, helping to offset the taxes owed.  If the law is renewed, you won’t have to claim the gift as ordinary income (although, if the past law is renewed as-is, a tax deduction would not be allowed). 

Our planned giving office is happy to answer any questions you might have.  Contact Dan Pritchard at dan.pritchard@littleflower.org or Janice Rutecki at janice.rutecki@littleflower.org or call 1-888-996-1212 for more information. 


GiftAnnuities

Charitable Gift Annuities

With bank rates remaining quite low, a charitable gift annuity can be an extremely attractive gift arrangement:  one that helps both you and the Society of the Little Flower.  Understanding how a gift annuity works is as easy as 1-2-3.

  1. You make an irrevocable gift of $1,000 or more to the Society;
  2. In return, we make payments to you for the rest of your life, at a fixed rate that is tied to your age;
  3. You also receive a charitable tax deduction for a percentage of the face value of the gift AND a portion of your payments is tax-free each year through your life expectancy.

Gift annuities can be created to benefit one or two people.  Payments can begin immediately or deferred to a later time (for example, when you retire).  Charitable gift annuities are typically funded with cash, but by using appreciated securities, additional tax advantages are available. 

If you are at least 60 years of age, gift annuities can be funded just for yourself, for you and someone you love, for a parent, for someone you care about—even if they are not related to you, and even for someone through your estate plan. 

To learn more about how to create a charitable gift annuity, including requesting a free gift illustration, contact Dan Pritchard at dan.pritchard@littleflower.org or Janice Rutecki at janice.rutecki@littleflower.org or call 1-888-996-1212 for more information. 


Securities

Gifts of Securities

Making a gift to the Society of the Little Flower by donating shares of stock or a mutual fund is tax-wise!  As long as you’ve owned the asset for longer than a year and it has appreciated in value, this is a terrific way to support the Carmelites and our beloved St. Thérèse. 

For example, by making a gift of 100 shares of XYZ stock, you are entitled to a charitable deduction for the full fair market value of the stock on the day we receive it.  Be sure you transfer the stock directly to us (rather than selling it on your own first).  By doing so, you avoid tax on all the capital gain and make a gift of great significance for potentially a small out-of-pocket expense.

Here’s an example

Mary bought 100 shares of XYZ stock for $25 a share in 2003 (a $2,500 purchase).  The stock is now valued at $100 a share, or $10,000.  If Mary sold the stock, she would have to pay tax on $7,500 of capital gain ($1,125 if she is in the 28% tax bracket).  This reduces the proceeds of the sale to $8,875. 

However, if Mary donated the stock directly to the Society of the Little Flower, she would be making an outright gift of $10,000 for an out-of-pocket expense of $2,500 (what she paid for the stock).  In addition, she would be entitled to claim a charitable deduction of $10,000.  For someone in the 28% tax bracket, this deduction saves $2,800 on his/her tax return.

We’ll be happy to provide you with the details you will need to make a gift of securities.  Dan Pritchard and Janice Rutecki in our planned giving office will be happy to guide you through the process.  You may contact Dan at dan.pritchard@littleflower.org or Janice at janice.rutecki@littleflower.org, or call 1-888-996-1212 for more information.  


As an important part of the Carmelites, the Society's Office of Planned and Major Gifts is here to help you. We would be happy to provide you with sample language, tax calculations, and informational literature. Since our information and calculations are only intended to serve as a general guide, we would be very happy to meet with you and your advisor by phone, or in person.

You may call us toll-free, 1-888-996-1212 and we will be happy to answer any questions you might have, provide you with sample calculations, or help you with your application. We believe that you should have all the relevant information necessary to make an informed decision. We are here to serve you!