Bequest

Appreciated Assets

You can save on income taxes if you contribute highly appreciated stocks, bonds or mutual funds to the church. Contributing these vehicles results in a double tax benefit to the donor. 1) if you held the asset longer than one year (long term property), you avoid paying capital gains tax on the appreciated asset; and 2) the full market value of the investment is a charitable tax deduction.

Life Insurance

You can irrevocably give the ownership and beneficiary of a paid-up life insurance policy to Calvary. You can take a charitable tax deduction equal to the value of the cumulative premiums or the cost of a comparable replacement.

IRA Required Minimum Distribution (RMD)

If you are 70 1/2 years or older, you can gift all or part of you IRA’s annual RMD directly to the church. If you choose this way to contribute: 1) you avoid paying ordinary tax on the gifted RMD; 2) your capital gains tax rate may be impacted; 3) you can deduct the amount of the RMD as a charitable deduction; 4) the percentage of your Social Security benefits subject to tax may be lower; and 5) it may reduce your exposure to the Medicare surtax. If you decide to contribute you RMD; your IRA custodian MUST make the check payable to Calvary Lutheran Church, NOT to you.

Real Estate

Gifts of real estate may save you income, estate and capital gains taxes. You will receive a charitable contribution deduction based on the fair market value of the property, with no capital gains liability on the transfer. There are some limitation and substantiation requirements for such gifts.

Personal Property