There are numerous ways to make contributions to the Beth Shalom Foundation and enjoy tax benefits. Everyone knows that contributions can be made in cash. Other ways include gifts of stocks or life insurance policies.
If you have a stock that has appreciated in value and you sell it, you will pay approximately 19% in Federal and South Carolina capital gains taxes. If you intend to make a donation to the Foundation with this money, you will only be left with 81% of each dollar to contribute. You can contribute the stock to the Synagogue instead of selling it first and you will avoide having to pay the 19% capital gains tax. You will be entitled to a charitable contribution tax deduction based on the market value of the stock on the day that you donate it to the Foundation, which depending on your income tax brackets could save you up to 2% in Federal and State income taxes. So by donating the stock instead of selling it, it may cos you as little as 39 cents for each dollar that you wish to donate. You may use a similar strategy with real estate that you intend to sell but you will need to get an appraisal to support the amount of your charitable donation.
Existing life insurance policies can be donated to the Foundation or you may purchase a new life insurance policy and make the Foundation the owner and benficiary. If you transfer an existing policy, you can get a charitable donation for the cash value of the policy at the time you transfer the ownership. You will then get a charitable deduction each year by donating the funds to the Foundation to pay the annual premiums on the insurance policy.
The Beth Shalom Foundation’s purpose is to set aside funds to provide for the long-term future of the Synagogue. Interest earnings on unrestricted funds are given to the Synagogue every year to assist in balancing its budget. If you have any questions about the Foundation or any of these contribution ideas, please contact a member of the Foundation’s Board or feel free to give me a call.
Barry Laban, CPA
Beth Shalom Foundation