Endowment gifts can be established in a number of ways. Donors have remembered the Daughters of Penelope Foundation, Inc. in their wills, some have established trusts in the which the Daughters of Penelope Foundation, Inc. is named as the beneficiary, some have considered a life income agreement, while others have donated appreciated securities.
Before making a planned gift, we recommend that you meet with your attorney or tax advisor to discuss the financial and tax implications of your charitable contribution.
Gifts made by will are one of the Daughters of Penelope Foundation, Inc. most important sources of individual support. Bequests can be made in the form of a specific gift of cash or a percentage of the remainder of an estate.
1. Gifts of Security
Owners of appreciated assets can obtain substantial tax benefits by transferring their stocks and bonds directly to the Daughters of Penelope Foundation, Inc.
First, donors will receive an income tax deduction equal to the fair market value of the stock on the effective date of their gift. In addition, they avoid capital gains tax on the transfer.
2. Charitable Gift Annuity
The simplest gift arrangement, this is a contract between the Daughters of Penelope Foundation, Inc. and the donor, providing for the payment of life income at a fixed date. The donor receives an income tax deduction in the year of the gift, subject to the usual rules of deductibility.
The annuity has an attractive provision for the taxation of the income: a portion of each payment is treated by the IRS as the non-taxable return of the donor’s principal; another portion is taxed as a capital gain to the donor if appreciated assets are contributed; and the balance is taxed as ordinary income.
The donor may contribute cash or securities to establish a gift annuity. The annuity may have no more than two income beneficiaries.
> The minimum contribution for a gift annuity is $10,000.
3. Gifts of Retirement Assets
Careful planning for the disposition of retirement plan assets can help to avoid undesirable tax costs. In certain situations, gifts to The Daughters of Penelope Foundation, Inc. of retirement account balances can improve the donor’s overall tax consequences, increase the amounts passing to heirs and reduce income and estate taxes.
4. Life Insurance Gifts
The large cash value resulting from a relatively small premium makes a life insurance policy an attractive planned gift. A gift of life insurance may be made in one of three ways:
- Donate a fully paid up policy, naming The Daughters of Penelope Foundation, Inc. irrevocable owner and beneficiary. The donor is entitled to an income tax deduction for an amount equivalent to the cash value of the policy.
- Purchase a new policy, naming The Daughters of Penelope Foundation, Inc. irrevocable owner and beneficiary. The donor is entitled to an income tax deduction for gifts made to the foundation that are designated for premium payments.
- Donate a policy on which premiums are still owing, naming The Daughters of Penelope Foundation, Inc. irrevocable owner and beneficiary. The donor is entitled to an income tax deduction for an amount equivalent to the cash value of the policy and for any additional gifts to fund premium payments.
How can I donate to the Endowment Fund?
Please contact the President of the foundation via email or write to:
Joanne Booras, PGP
Daughters of Penelope Foundation Inc., President
PO Box 1556, Danville, CA 94526