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Gifts of Cash    

Gifts of cash are the most simple way to make a major gift to The Servants of Mary.

If you itemize deductions on your tax return, the initial benefit of making a cash gift today is an income tax deduction for the full value of the gift, in most cases. Any reduction in income tax lowers your net cost of the gift in return. And, if you are subject to state and/or local income taxes in addition to federal taxes, the combined marginal rate (after the federal deduction for those income taxes paid) can be taken into account in determining the gift's net cost.
 

If you don't normally itemize deductions, you may want to consider it for any tax year in which you make a sizable charitable donation. Many people who have few deductions to itemize try to vary their giving levels in alternating years with lower giving in years where they take the standard deduction, and more when they can itemize.

Remember, if you expect your estate to be subject to estate tax upon your death, you may receive a federal gift tax charitable deduction for the value of gifts of cash made during your lifetime. Since this value also is subtracted from the value of your future estate, it can completely eliminate your federal estate tax exposure. Remember, this savings reduces the net cost of your charitable gifts.

Example:
The net cost of a $1,000 cash gift is $720 if your combined state and federal marginal income tax rate of 28%.
It's calculated by taking the percentage amount of your tax bracket multiplied by the amount of the gift, then subtracted from the total amount of the gift.

i.e., 28% x $1,000 = $280
$1,000 - $280 = $720 


For additional information on gifts of cash, please contact Fr. Lawrence Choate at 800-778-4400.