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Cash Gifts
 The simplest and easiest gift is cash. Donors may choose outright cash, personal checks, cashier's checks, or money orders. Make it convenient to give with credit/debit cards by listing transaction information on your pledge card.
Should you pursue online giving? Some of the largest charities report that 10 to 15 percent of their fundraising comes from online donations. NetworkforGood.org offers simple ways to begin accepting online donations from your website.
As you promote cash gifts, remind your donors that the only planning required to take a charitable deduction for the gift on a certain year's tax return is that the gift must be postmarked or delivered before the end of that year. Under new tighter provisions, any gift of any amount must have a charitable receipt. In past years, only gifts over $250 required documentation to be eligible for a deduction.
Donors who itemize deductions may deduct cash gifts up to 50 percent of their adjusted gross income and carry excess deductions forward into as many as five additional tax years.
Gifts of Appreciated Assets
An outright gift may be composed of almost any asset of value. Gifts of appreciated stocks and bonds provide considerable tax advantages when transferred to your organization before they are sold. Donors who have owned these securities for more than one year may find that their gift will create an income tax deduction as well as avoid capital gains taxes.
Give your donors the option of transferring stocks from a broker's account. Mutual funds, non-marketable stock, or closely held stock can also be given. Talk with your financial advisor and have your accounts ready to receive gifts.
Donors can take an itemized deduction of up to 30 percent of their adjusted gross income for gifts of appreciated assets. Any excess deductions can be carried forward into as many as five additional tax years.
Gifts of Real Estate
Giving personal residences, second homes, income property, and vacant land offers a wide variety of tax and other benefits. Most people give away their entire interest, but it is also possible to give only a portion of the property (an undivided percentage interest).
The donor may deduct the full fair market value of the property without having to pay capital gains on the appreciation, providing they have held the property for more than one year.
Gifts of Tangible Personal Property
Donating tangible items such as rare books, works of art, and valuable collectibles is also a great way to make a gift and may offer significant tax benefits. Likewise, gifts of intangible personal property, such as copyrights, patents, and mineral rights can generate income for your center on a continuing basis.
TALK WITH YOUR
FINANCIAL ADVISOR AND
HAVE YOUR ACCOUNTS
READY TO RECEIVE GIFTS.
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If donors contribute noncash items worth over $500 during the year, they must file Form 8283 (Noncash Charitable Contributions) with their 1040. Items worth more than $5,000 require a written appraisal of the value of the item(s), and the donor must complete Section B of Form 8283. Both the appraiser and a representative of the charity must then sign the form. A qualified person must perform the appraisal no more than 60 days before the contribution is given, and the donor must have that appraisal in hand when they file their return.
Donors of big-ticket items such as used cars, boats, and airplanes can now deduct only the amount the charity receives from the sale of the item. The charity must provide substantiation of the IRS-allowed donation amount within 30 days of receiving the car or within 30 days of the vehicle's sale.
Matching-Gift Programs
An easy way to double or even triple donations is through company matching gift programs. Such programs typically match all or a percentage of employee contributions to charitable organizations. Encourage your donors to check with their employer's personnel office to see if your ministry is eligible. All the employee has to do is fill out the company's matching gift paperwork and mail it with their contribution.
Gift Pledges
With pledges, donors may complete their gifts by making regular payments over time, allowing them to give more generously than they originally may have considered. Each pledge payment is eligible for an income tax charitable deduction. Pledges are especially effective for capital campaigns when the payout period is usually scheduled over 36 months.
Retained Benefit Gifts: Donors Retain Use or Income
It is possible for donors to make gifts from their assets and still enjoy the use or income of the property for the rest of their life and/or the life of another person. Investment assets, personal or vacation residences, farms, or businesses are good candidates for these arrangements.
The donor receives an income tax deduction in the year he or she signs an agreement. Donors often benefit from an increased income stream from these assets. In many cases, the monies distributed are taxed at the lower capital gain rate instead of being treated as ordinary income.
Refer your donors to attorneys, accountants, and financial planners who are knowledgeable in these various arrangements.
Gifts of Life Insurance
Life insurance offers a unique way to make a gift. The donor simply designates your ministry as the owner and beneficiary of the policy. Donors should check with their tax advisors on how to calculate the income tax deduction.
Gifts and Long Range Planning
Charitable gifts are often a significant part of effective retirement and estate planning. The simplest way to make a long-term gift to your ministry is for the donor to make a bequest of cash or property in their will or living trust.
In-Kind Gifts
Another gift possibility includes in-kind gifts. Your center uses and needs dozens of goods and services. The possibilities are endless. Develop a list and promote in-kind gifts in your newsletter.
For noncash contributions of $250 or less, give your donors a receipt showing your organization's name, the date and place of the contribution, and a detailed description of what was given. Donors must establish the value of the contributed item and may fill in the description information for themselves.
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