Benefits of Giving

Typically, individuals who make charitable contributions to the ABYC Foundation do so because they are confident the funds will be used wisely to improve the marine industry and ensure the boating experience is a safe one. In return, a door is opened to a number of possible benefits, and depending on the amount given and type of gift selected; a donor can expect to realize some or all of the following:

• Fulfill philanthropic goals
• Reduce income tax through a deduction for the gift
• Avoid capital-gains tax on gifts on long-term appreciated assets
• Reduce costs and time in estate settlement
• Retain a stream of payments for life for the donor and for other beneficiaries
• Increase spendable income
• Eliminate federal estate tax on property passing to charity upon the donor's death

By making a charitable contribution with gifts of cash, appreciated securities, real property or through an estate gift you are ensuring continuity of educational excellence for future marine professionals. Gifts to the Foundation can be made through a number of different vehicles listed below, but please consult with your own tax and legal advisors to maximize your tax benefits.

Cash

Cash is the easiest, simplest, and most popular type of charitable gift. Most of the gifts to the ABYC Foundation are in the form of cash, from people simply writing a check! If you itemize, your outright gifts of cash are fully deductible for federal income tax purposes, up to 50 percent of the donor's adjusted gross income (AGI). If your total gifts should exceed this limitation, the excess may be carried forward for tax purposes for up to five additional years. This tax advantage can make the net cost much less than the actual amount of the gift.

Life Income Gifts

A life income plan allows you to make a substantial gift to charity while still providing for your personal financial needs. With many investments providing low rates of return, your gift of cash or stock to us, made in the form of a "life income gift," can actually increase your income! A life income gift allows you to transfer assets to the ABYC Foundation now, and yet continue to receive the income from the cash, stock or other property contributed. A life income gift...

• Increases your income for life
• Receive a generous charitable contribution deduction, and
• If you contribute stock, avoids any capital gains on the appreciation.

Securities and Real Estate

Popular alternatives to cash are gifts of appreciated property, such as securities and real estate. If you have owned your home, a vacation home, acreage, a farm or stocks for many years, a charitable gift of these assets may be very advantageous. The property or security could have so appreciated in value through the years that its sale would result in a sizable capital gains tax. If given to the ABYC Foundation, you receive an income charitable deduction for the full, fair-market value of the property plus you escape a potential tax on any capital gains. Should you wish to continue living in your home or farm for life (or for the life of your surviving spouse), you may donate the property, continue living in it and take a current income tax deduction for a portion of the fair market value of the property.

Life Insurance

If you own life insurance that may no longer be needed or may increase your estate taxes upon your death, consider making the ABYC Foundation both the owner and the beneficiary of the policy. Any cash value in the policy can be deducted as a charitable contribution. If annual premiums are still required, and you continue to pay them, those premiums will become a tax deduction as well. Additionally, many individuals of modest means are establishing life insurance policies with the charity as beneficiary. They may not have a lot of money to contribute, but they can afford the relatively modes annual outlay of the premiums, in order for the charity to significantly benefit upon their death.

Bequests

Each year, many individuals designate a portion of their assets by bequest to benefit charitable organizations. Bequests take many forms such as directing the ABYC Foundation to receive a specific piece of property, or specific dollar amount. Additionally, your will may establish a unitrust or annuity trust to benefit the ABYC Foundation and/or a surviving spouse. Because of the estate-trust charitable deduction, a bequest in any of these forms can significantly reduce the tax burden of your estate. If, for example, you are subject to the top estate rate of 55 percent, a $100,000 charitable bequest saves $55,000 in taxes. Gifts under wills are becoming an important part of the American philanthropic tradition because they allow individuals to make significant gifts that they may not have been able to make while living.

Charitable Remainder Annuity

The annuity trust shares many features of the unitrust, but with an annuity trust, you and/or your spouse (or other beneficiary) receive annually a fixed amount from the trust. this amount is agreed upon when you create the trust. It stays constant, regardless of what happens with the stock market or interest rates.

Both of these trusts can provide significant tax advantages to the donor, income for life and support to the ABYC Foundation while the donor is living. Please call for further details.

Charitable Remainder Trusts

Often called a "unitrust," this trust arrangement provides you and/or your spouse (or other beneficiary) annually, a fixed percentage of the fair market value of the assets of the trust. The income will vary from year to year depending upon how the investments perform.