Current gifts are often referred to as "outright gifts" and represent one of the
most common ways that donors begin their giving relationship with the Angus Foundation.
Current gifts provide immediate assistance to the Angus Foundation, while planned
or deferred gifts impart benefit at some future date.
Giving to the Annual Fund is a significant element
of current gifts that provides much-needed dollars for wide-ranging initiatives
such as educational seminars, student scholarships, Leaders Engaged in Angus Development
(LEAD), travel and leadership training for NJAA Board of Directors.
Current gifts can be in the form of cash, gifts of securities, gifts of property
or corporate matching gifts if that option is available to you to also access for
the benefit of the Angus Foundation. Furthermore, it's important to know that current
gifts can be designated for a specific Angus Foundation education, youth and research
initiative, or you can indicate that your gift is unrestricted.
1. Cash
A gift of cash is the easiest and most frequent way of giving to the Angus Foundation.
Simply make your check payable to the Angus Foundation, and mail it to the Foundation.
Your gift will be recorded and receipted promptly on behalf of the specific initiative
that you wish to support. Please include a short note with your check stating the
purpose or designation of your gift. You may also note this information on the memo
line of your check. Without designation, your gift will be recorded as unrestricted
for use as determined by the Angus Foundation. These gifts are fully deductible
for federal income tax purposes, subject to the limitations placed on charitable
gifts by the Internal Revenue Service. Gifts can also be made by Visa or Mastercard
or Discover credit cards by clicking Donate Online.
2. Securities
Common and preferred stocks, bonds, mutual funds and other appreciated securities
may be donated to the Angus Foundation. In addition to providing benefit to the
Foundation as a current gift, securities may also be part of the planned giving
process, depending on the donor's wishes and financial objectives.
A popular benefit of such a gift beyond the charitable income tax deduction is the
avoidance, in most cases, of capital gains tax on the appreciation. Regardless of
your income bracket, it is almost always to your advantage to transfer appreciated
securities to the Foundation directly, rather than selling them and giving cash.
In the case of securities having depreciated in value, in most cases it is advantageous
to sell the security, take the capital loss for tax purposes, and donate the proceeds.
You, your broker or bank trust officer should contact the Foundation to determine
the best method for the transfer of your securities to the Foundation. Instructing
the transfer agent to reissue the stock in the Foundation's name often causes delay.
This can especially be a problem when a year-end gift is involved, since the delay
could result in a different valuation or gift date than intended. For information
about gifts of stock in closely held corporations, also contact the Foundation for
assistance.
3. Gifts of Real Estate or Real Property
Donors can contribute real estate such as their residence, vacation home, farm,
ranch, commercial property or undeveloped land to the Angus Foundation. Usually,
the Angus Foundation will accept gifts of real estate if there are no restrictions
placed on selling the property. (The Angus Foundation reserves the right to accept
or refuse all property donations.) Real property can be donated to the Foundation
as a current gift by a warranty deed. Real property may also be part of the planned
giving process. The donation is worth the property's fair market value, which must
be established by an independent appraisal.
Note: When mortgaged property is donated, it is subject to bargain sale rules. According
to the IRS, a bargain sale occurs when property is sold to a charity at a price
less than fair market value or when it is mortgaged or otherwise encumbered. In
these circumstances, the donor has made a charitable gift and a sale. The sale element
of such a transaction may have capital gains consequences. These transactions, because
of their complexity, should be closely examined by the donor's tax advisor to avoid
tax problems.
4. Personal Property
Any item of personal property that has value may also be donated. Such items include
cash, securities, art, copyrights, equipment, stock of closely held corporations,
antiques, insurance policies, jewelry, furniture, rare books, manuscripts, and any
other item that has a determinable value.
Unless the donor has created personal property (for example, art work), he or she
may deduct the full fair market value of the property as a charitable contribution.
The IRS has appraisal rules to which the donor must adhere when making such a gift.
These gifts can receive the same tax treatment as gifts of securities: no capital
gains tax plus deductibility at fair market value.
5. Life Insurance
A life insurance policy can become a gift of much greater value than the actual
money expended when the policy is given to the Angus Foundation, which is named
as the beneficiary. The donor either can pay up the entire policy or make annual
contributions to the Angus Foundation for the cost of the premiums. This is a tax-deductible
gift.
In most cases, current tax advantages are available only when ownership and beneficial
interest in the policy are both irrevocably transferred to the Angus
Foundation.
Whole and universal life insurance policies may accrue cash value and are usually
assignable.
Term life insurance policies (e.g., a group term life policy provided by an employer)
may not be assignable. However, a donor (insured) may still be able to designate
the Angus Foundation as a beneficiary.
Request forms to transfer ownership or to name the Angus Foundation as beneficiary
(depending on gift type) from the issuing company or agent. Return completed forms
to insurance company for processing.
Angus Foundation staff will work with the insurance company to complete the transfer,
if necessary.
Information needed. When policy ownership is transferred to the Foundation, the
following is required:
- Donor's/insured's name and their relationship
- Policy's face value
- Premium payment information
- Current cash value of policy
- Policy number
- Name of insurance company
- Original policy documents
To name the Angus Foundation as beneficiary: Obtain the necessary documents from
insurance company or agent and send to the Foundation.