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.
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 (IRS). Gifts can also be made by Visa, MasterCard orDiscover credit cards by clicking Donate Online.
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.
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.
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.
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.
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
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.