Donations to PRASAD CDHP

Stocks, In-Kind Gifts & Bequests

• Stocks
• In-Kind Gifts
• Bequests

Consult with your financial planner, accountant and/or attorney to determine which categories best fit your individual and family situation.

For donation assistance please call 845.434.0376 or send an email message to development@prasadcdhp.org.

Stocks

Gifts of Appreciated Assets
There are ways of making a contribution other than by a gift of cash. For example, your assets may include appreciated securities. If sold, a substantial portion of proceeds would have to be paid in taxes. But a gift of appreciated assets to PRASAD CDHP, owned by you for more than one year, would qualify for a charitable contribution deduction equal to the full fair market value of the assets. Your gift could then be sold by PRASAD CDHP, and since PRASAD CDHP is a not-for-profit organization, the appreciation would not be taxed. In this way, more of your gift can be used in the manner you had intended.

Example: Mrs. Smith purchased 100 shares of stock 12 months ago for $5,000. The stock is now worth $20,000. She would like to use this stock to make a gift to PRASAD Children’s Dental Health Program. If she first sells the stock, pays her tax liability, and then donates the proceeds to PRASAD CDHP, her gift and the resulting charitable deduction may only be $16,000 rather than $20,000. This is because if she sells first, a capital gains tax of $4,000 will have to be paid by her (on the gain of $15,000 at a 20 percent capital gain tax rate).

A better solution is to simply donate the stock to PRASAD CDHP. Her deduction would be $20,000 and PRASAD CDHP could receive an additional $4,000 for its humanitarian purposes. (Your accountant, financial advisor or a planned giving advisor can supply information on how to make this type of gift.)

In-Kind Gifts

Many individuals and businesses may be able to provide substantial assistance by gifting goods (for example, office computers, certain medical supplies and equipment) that can be used in PRASAD CDHP’s work.

These special gifts free up funds that would have been used by PRASAD CDHP to purchase the gifted items and in many cases, the donor can purchase the goods at a lower cost than PRASAD CDHP can, given existing supplier relationships or volume purchasing arrangements. If you are considering giving an in-kind gift to PRASAD CDHP, it is important to review your plans with our office to determine if the gift can be used at this time and if it meets certain acceptance guidelines or specifications.

There are special rules surrounding the tax deductibility of goods gifted for charitable purposes. The general rule is that goods are contributed at the cost basis paid for them by the donor. For specific rules governing an anticipated contribution, you should consult with your tax or legal counsel along with the PRASAD CDHP office.

Bequests

Many donors can make their most significant contribution to PRASAD CDHP through bequests made through a will or a living trust. Donors can leave bequests in the form of cash, securities, or real property, and the estate is entitled to take a tax deduction for the full value of the bequest. Overall estate plans and the particular method of bequest will vary, depending upon the individual’s needs. Four of the most common types of bequest are:

- A specific bequest, in which a specific dollar amount or property is designated as the bequest to PRASAD CDHP.
- A residuary bequest, in which PRASAD CDHP is to receive all or part of what is left of the estate after all of the specific
  legacies of the will have been paid.
- A contingent bequest, in which PRASAD CDHP is “second in line” and receives the bequest only if a primary beneficiary
  dies before the donor.

A trust remainder bequest, in which a trust is established in the will to provide income for named beneficiaries, and in which it is stipulated that, when specific conditions are met (usually the death of or attainment of a certain age by the beneficiary), all or part of the trust assets will be given to PRASAD CDHP.

 

Consult with your financial planner, accountant and/or attorney to determine which categories best fit your individual and family situation.

For donation assistance, please call 845.434.0376 or send an email message to development@prasadcdhp.org.