Cash, Stocks, and Insurance
"The quickest and easiest method of end-of-year donation is sending a check or transferring stock to the charity of your choice," says Carla B. Gale, vice president and trust officer of the Charitable Trust Services Team for Regions. "You can transfer stock or other securities and receive the full fair market value on the date you make the gift as a charitable deduction. The charity can sell the security and won't have to pay the capital gains tax."
Another option is to transfer a paid-up life insurance policy to charity, naming the charity as beneficiary of the policy after your death. This strategy makes the most sense for people of advanced age or those who no longer need a particular policy.
Don't forget about cash donations. They're easy to make, and you'll get a tax deduction for the amount transferred to charity.
Most charities will automatically give you a receipt for a donation, but if not, it's always a good idea to request one, even if the gift was in the form of a check.
Charitable Trusts
You can establish a personal trust as a safe place to deposit assets, such as securities or real estate, to benefit you or your spouse during your lifetimes and then pass to a charitable beneficiary upon your death. A trustee - someone with investment knowledge - manages the trust on your behalf. You can designate multiple charitable beneficiaries, and if you set up the trust during your lifetime, you receive a charitable deduction in the year of establishment that can carry forward for five more years. If you include such a trust in your will, your estate receives the charitable deduction for the value of the trust assets.
Help Needed
In these turbulent economic times, your generosity is needed more than ever. Charities are often the first places to suffer when the economy hits a rough patch, meaning those who need help the most are left out in the cold. Find time this holiday season to give a little bit of yourself - and your wealth - to those less fortunate.
No matter how you plan to make a charitable donation, do your homework and be certain the method you choose is right for you. Call Regions Morgan Keegan Trust at 615-748-2922 or 205-326-5382 and we'll help you find a trust manager in your area to discuss your philanthropic goals.
Trust services are provided by Regions Morgan Keegan Trust, a trade name of the trust division of Regions Bank. Securities and insurance products offered through Regions Morgan Keegan Trust are not FDIC-insured, not a deposit, may go down in value, not bank guaranteed, and not insured by any Federal Government Agency.