Careful planning of your gift to Birmingham Group Health Services can help maximize the benefits to you and to the organization.  Federal income, estate, and gift tax laws encourage individuals and their families to make gifts to charity by offering tax savings, credits and deductions.  The following are some ways that you can make a significant gift to Birmingham Group Health Services and take advantage of these tax savings.

Outright Gifts

If you make an outright gift to Birmingham Group Health Services (BGHS) of cash, appreciated securities, real estate, or personal property, and your total deductions exceed your maximum permitted federal deduction for one year, you can claim the excess as deductions on your federal tax returns in the five subsequent years.  Below is an explanation of the tax benefits for making the following gifts:

A.  Cash Gift

The full amount of a cash gift, up to 50 percent of your adjusted gross income, can be deducted for income tax purposes in the year that the gift is made.

B. Gifts of Appreciated Securities

If you donate appreciated securities to BGHS, you can avoid capital gains tax on the difference between the price you paid for the securities and their current market value the date the gift is made.  You can also deduct the current market value of your securities gift, up to 30 percent of your adjusted gross income.

C. Gifts of Real Estate

If you donate appreciated securities to BGHS, you would be credited with a contribution valued at the fair market value of the real estate, which is ordinarily ascertained by a real estate appraiser.

Deferred Gifts

A. Life Income Gifts

With a life income gift, you assign cash, securities, or other assets irrevocably to BGHS.  They are then invested to pay a lifetime percentage or fixed amount to you, to succeeding beneficiaries, or to whomever you designate.  Income is paid monthly, quarterly, semi-annually, or annually and is taxable to the beneficiary.  Upon the death of the last surviving beneficiary, the organization may use the assets either as needed or for a specific purpose for which you have designated.  A life income gift gives the donor a substantial charitable deduction against taxable income in the year that it is made, even though it continues to produce income for the donor during his/her lifetime.

B. Bequests

Gifts by will, whether in the form of cash, securities or other property, may be fully deducted in determining federal estate taxes and inheritance taxes.

C. Life Insurance

Donors who no longer require the protection of life insurance policies acquired years ago, may realize immediate tax savings by transferring them to BGHS and naming BGHS as the irrevocable beneficiary.  An alternative is to take out a new policy, naming BGHS as the owner and irrevocable beneficiary.

For more information about these or other planned giving programs, please contact BGHS' Development Department at (203) 736-2601, ext. 360 today.