Need a simplified method of giving? Our Gift Deposit Account is a unique tool designed to enhance your charitable giving. This account operates like a personal checking account for charitable donations: you make deposits, the Foundation writes the checks and all transactions support non-profit ministries. Experience the convenience of contributing funds to a church or charitable cause of your choice through a plan that offers more tax benefits for you.
Three Easy Steps to Charitable Giving
- Contribute — Open a Gift Deposit Account with the Foundation by contributing cash, stocks, bonds, mutual fund shares, or any asset that holds a fair market value. The Foundation will sell any non-cash asset on your behalf and deposit the sale proceeds into your account. You have the freedom to make additional contributions to your account at any time.
- Recommend — As the donor, you serve in an advisory role to recommend the distribution of funds from your account. At your convenience, you may request a donation to any church or charitable organization that has established its exempt status under Section 501(c)(3) of the Internal Revenue Code. Use distribution vouchers, which are received at the time your account is opened, to make recommendations. (Recommendations are subject to final approval from the Foundation.) Do you wish to donate funds anonymously? The Gift Deposit Account makes it simple and easy by marking ‘anonymous’ on your distribution voucher.
- Distribute — After your voucher is received, a check is mailed to the suggested recipient(s) within five business days. Each check is sent with a letter explaining the gift and indicating the donor and designation, if applicable. You receive a copy of the letter and a receipt to confirm the mailing of your distribution request.
Your contribution can make a difference for congregations, mission organizations, relief efforts, and church agencies and institutions worldwide.
Why should I use a Gift Deposit Account for my charitable giving?
- Tax benefits — Use your Gift Deposit Account as an effective tax-planning tool.
- Obtain an immediate tax deduction for a deferred gift — You receive an income tax deduction for any contributions to your account during the year your contribution is made, even though you may identify the recipient(s) of your gift at a later date. If you want additional tax deductions during a given year, make a deposit during a high-income year and decide later how you want to distribute the gift. In order to qualify for a full tax deduction, all contributions are considered irrevocable and must be made without restrictions.
- Avoid capital gains tax — When you sell appreciated property—such as securities or real estate—the increase in fair market value over your cost is taxable as a capital gain. If you contribute your appreciated assets to a Gift Deposit Account, the Foundation makes the sale to convert your assets into cash and you avoid the capital gains tax. By using this strategy, more funds become available for charity.
Reports to Donors
The Foundation makes it easy to keep track of your charitable giving. A report of your account activities, including deposits and disbursements, is sent to you semi-annually. An additional status report may be requested at the end of any calendar month. Even better, ask for a user id and password and access your account online.
The Foundation invests your deposit with other funds from our Trust Division so your account generates income. Earnings are not recorded as income to you, but the amount available for donation increases.
Contact Dave Strausser for more information.
(717) 796-4788 ext. 5418