FINANCIAL CORNER -- CHARITABLE GIVING

Since the charitable contribution season is going to be upon us soon, I thought the Charitable Giving would be an appropriate topic for this month’s issue.

There are a number of ways to donate to a charity, including outright gifts and charitable trusts. The following are just a few ideas, which do not take a lot of time or money to accomplish, for your reference:

- Donate Appreciated Property
By donating appreciated stock, the charity is not required to pay the capital gains tax and you receive the benefit of tax deduction if you file an itemized tax return.

- Donor-Advised Fund
A donor-advised fund (DAF) offers an easy way for a donor to make significant charitable gifts over a long period of time. A DAF is relative easy to set up and maintain.

- Charitable Contribution from IRAs
If you are 70 1/2 or order, you can transfer as much as $100,000 directly from an IRA to a qualified charity without having to pay income tax on that money and the transfer counts toward your required minimum distribution. This provision is set to expire on 12/31/07.

- Donate Existing Life Insurance Policy
To donate your policy, you must assign all rights in the policy itself to the charity. In other words, you give up all control of the policy forever.

- Name Charity as Beneficiary of Your Life Insurance Policy
You, as the owner of the policy, simply designate the charity to be the beneficiary of your policy. There is no immediate tax benefit since you still retain the control of the policy.

By Lily M. Hazelton, CLU, ChFC, CFPR of Brecek & Young Advisors, Inc.

The information contained herein is not intended as a substitute for direct financial or legal advice. Brecek & Young Advisors, Inc. does not provide tax advice. Please contact a tax or financial professional for further information.