Assets to Give

You can scroll down through this page to review the options if you have assets to give, or click on any of the following links to jump to an individual method of giving:..

  1. Gifts of Cash
  2. Gifts of Appreciated Securities
  3. Gifts of Business Interests
  4. Partnership Interests
  5. Retirement Assets
  6. Gifts of Life Insurance
  7. Personal Property


1. Gifts of Cash

How it works

Benefits


Gifts of Cash - Complete gift description

If you want to help Hanul Family Alliance today and maximize your charitable deduction, consider making your gift with cash. Cash is the simplest asset to donate- there is no appraisal to secure and no acceptance policies to follow. It is also the simplest asset for Hanul Family Alliance to put to good use. [new paragraph] Make your cash gift via check or money order, a credit card or a wire transfer.

There’s an extra tax benefit
You can claim the entire amount of your cash gift as a charitable income tax deduction. The IRS allows you to claim this deduction up to 50% of your adjusted gross income (AGI). If you used appreciated securities or other assets to make your gift, your deduction would be the same, but you would only be able to claim the deduction up to 30% of AGI. 

Remember
Although a cash gift can provide immediate benefit to us, you can also use it to fund a life-income plan such as a charitable gift annuity.

Gifts of Cash - Is this gift for you?
A gift of cash is for you if…


Gift example
*
For charitable gifts of cash, the IRS allows you to claim up to 50% of your adjusted gross income (AGI). However, for charitable gifts of appreciated property, you may deduct up to only 30% of AGI in any one year. The good news is that with both types of gifts, if you cannot use all of the deduction in any one year, then you may carry over any remainder for the next five years. We have illustrated this below.

GIFT OF: CASH APPRECIATED ASSETS
Donor's AGI $300,000 $300,000
Amount of Gift $200,000 $200,000
Total Charitable Deduction $200,000 $200,000
Deductible Against % of AGI 50% 30%
Deduction in First Year $150,000 $90,000
Net Taxable Income, First Year $150,000 $210,000
Net Tax in First Year at %35 Rate $52,500 $73,500
Carryover Deduction $50,000 $110,000
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* This example is based on current income tax rates, which may change.

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2. Gifts of Appreciated Securities   back to top toTopArrow

How it works

Benefits

Complete Gift Description

Give appreciated securities to Hanul Family Alliance and you shall receive- a tax break. Our government allows you to deduct these gifts as charitable donations. Moreover you avoid capital gains on the transfer. This double benefit means that you can leverage a larger donation by using appreciated securities rather than cash to make your gift. Here’s how it works:

$100,000 CASH $10,000 STOCK $15,000 STOCK
Cost Basis $500 Cost Basis $750
Charitible Deduction $10,000 $10,000 $15,000
Tax Savings at 33% Rate $3,300 $3,300 $4,950
Capital Gains Tax Saved $0 $750 $1,125
Net Cost of Gift $6,700 $5,950 $8,925
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Securities fluctuate in price - how will my gift be valued?

We take the average of the high and low prices for the security on the date of its transfer to us. If the high price was $80 and the low was $70, your gift will be $75 per share.

Creative plans for securities gifts

Use your gift of appreciated securities to fund a life-income gift at Hanul Family Alliance like a charitable gift annuity[link] or a unitrust[link]. Pay no upfront capital gains tax on the transfer, and receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result? You make a gift to Hanul Family Alliance while diversifying your portfolio and securing a stream of income.

Gifts of Appreciated Securities- Is this gift for you?

A gift of appreciated securities is for you if…

Gifts of Appreciated Securities- Important Reminders

(A.1.i.1.a) Don’t sell stock first and then give Hanul Family Alliance the proceeds. Even though you are making a gift, the IRS will impose capital gains tax on your sale, eliminating a key tax benefit of this giving technique.

(A.1.i.1.b) Don’t contribute securities that have declined in value. The fair-market deduction rule works against you: if you bought the stock for $50,000 and it’s now worth $30,000, your charitable deduction will be limited to $30,000. You won’t earn a capital loss by making the transfer to us either. It is better to sell the depreciated stock, claim the resulting loss as one deduction and then make a deductible cash gift to Hanul Family Alliance with the proceeds.

Gifts of Appreciated Securities- Details on Transferring Stock

How to contribute gifts of securities: Making gifts of appreciated securities need not be complicated. When giving securities, be sure to consult with your financial advisors and/or attorney. Additional time should be allowed for completion of such gift transactions.

Securities held by your broker: Inform your broker in writing that you wish to give appreciated securities to Hanul Family Alliance. Click here[link to form at Exhibit __] to download a sample letter for your use. Be sure to let the broker know when you’d like the transfer made. Your broker will need to call us at (773) 478-8851 to obtain pertinent account information.


3. Gifts of Business Interests   back to top toTopArrow

How it works

Benefits

Complete Gift Description

(A.1.i.1.a) Gifts of business interests:

(A.1.i.1.b) What are the advantages of contributing a business interest?

How are gifts of interests valued?

Since closely-held stock doesn’t trade publicly, a gift of such an asset requires an independent appraisal to establish its fair market value. Your charitable deduction will be based on the appraised market value of the shares, minus any liabilities you may have accrued.

Gifts of Business Interests - Is this gift for you?

A gift of a business interest is for you if…


4. Partnership Interests   back to top toTopArrow

How it works

Benefits

Complete Gift Description

Gifts of transferable partnership interests — primarily in real estate or oil and gas ventures — can benefit both you and further our mission. Gifts are usually made to us outright, but in some cases may be used to fund a life-income gift. Click here[link] to learn more about the charitable remainder unitrust.

Why should I consider contributing this type of asset?

If you invested in a partnership to gain the tax losses generated in its early years, you may want to consider donating your interest once income starts flowing to the partners. As with other gifts, you are entitled to a charitable deduction, based on the difference between your share of the fair market value of the partnership and your share of its liabilities.

What steps do I need to take to contribute a partnership asset?

Because of the technicalities involved, some precautionary steps must be taken. You should first determine if the partnership allows shares to be transferred. Because gifts of partnership interests involve Hanul Family Alliance in issues of marketability, taxation, liability, and the potential of later assessments by the partnership, the transfer must be reviewed and approved. Be sure to first consult with your attorney and accountant to ensure this is an advantageous gift for you.

Gifts of Partnership Interests - Is this gift for you?
A gift of partnership interests is for you if…


5. Retirement Assets   back to top toTopArrow

How it works

Benefits

Complete Gift Description

Did you know that your retirement plan assets will be taxed heavily when you die?

When you plan your estate it may seem natural to designate a family member as the successor beneficiary of your retirement plan, and use other assets to make a charitable gift. But using retirement assets to make your donation and leaving other assets to your heirs often enables you to give more to your heirs.

Since we are a non-profit organization, we won’t pay income tax on the distribution (nor will the gift be subject to estate tax). The entire amount comes to us and your heirs will benefit from a reduced estate tax burden.

Planning points

Gifts of Retirement Assets - Is this gift for you?

A gift from your Retirement Account is for you if...


6. Gifts of Life Insurance   back to top toTopArrow

How it works

Benefits

Complete Gift Description

Your financial projections may indicate that you won't accumulate large blocks of capital during your lifetime, or that your family will have first call on your estate. You want to make a significant gift to Hanul Family Alliance, but wonder if you'll find the resources to do so.

Life insurance uses manageable payments made from income — the premiums — to create a large future gift for Hanul Family Alliance. You can build our long-term financial strength without diminishing your own.

Make the gift by taking out a new policy on your life, naming Hanul Family Alliance the owner as well as beneficiary (this arrangement makes the gift complete in the eyes of the IRS.) We will receive the premium notices, and you will make annual donations to offset our payments. These gifts will, of course, be tax-deductible. There is no deduction for setting up the policy itself.

Besides creating a new life insurance policy, you can also donate an existing policy. This gift will generate an initial tax deduction: the lesser of the policy's fair market value — we can guide you in determining this — or the total of your net premium payments. If premiums are still payable, we will ask you to make tax-deductible contributions offsetting our payment of those premiums. We do reserve the right to keep such a policy in force during your lifetime, or to terminate it sooner for its cash-surrender value.

Is this the gift for you?

A gift from of Personal Property is for you if…

Important Reminders

DO: It is important that you name Hanul Family Alliance as the owner of the policy and not just its beneficiary. If you retain ownership of the policy, the IRS will not allow you to deduct your premium payments, even though you are making them on our behalf.

WATCH OUT: If you have borrowed against a life insurance policy, a gift of the policy with the loan still outstanding will create taxable income for you in the amount of the loan balance.


7. Personal Property   back to top toTopArrow

How it works

Benefits

Complete gift description

Not all gifts have to be cash or securities. Many individuals opt to make donations to us of personal property that has value. For example, you may choose to contribute artwork, collectibles, equipment and other items that help us advance our mission.

If you are considering such a gift, please call us first, as what you choose to donate may impact the amount of your charitable deduction.
You will need to secure an independent appraisal to establish the amount of your deduction.

Is this the gift for you?

A gift from of Personal Property is for you if…

Related Use Requirements

To obtain a full market value deduction for a gift of personal property, the use by Hanul Family Alliance must be related to its charitable purposes or functions. If not, the deduction is for cost basis only (or, if less, fair market value). To illustrate this, a gift of a painting to a museum should clearly be a related use gift. However, if the work of art is contributed, for example, to a charity that intends to sell the piece, the deduction may be for cost basis only.