In addition to a charitable deduction for the amount of a cash gift, there may be additional estate and income tax benefits from giving non-cash assets. Your tax advisor can provide you specific information about these benefits as they may apply in your particular situation.
You can give a specific asset or collection of assets including securities, real estate or other property. Gifting appreciated securities or other appreciated property to a charity, rather than selling the property and gifting cash, may provide you enhanced tax advantages. Subject to the IRS rules, you may receive an income deduction for the full value of the asset without paying income tax on the capital gain in the appreciated asset.
Giving these assets may be appropriate for donors who no longer need the asset but would like to benefit charity and receive an income tax deduction. A gift of life insurance may be made by transferring ownership of the life insurance policy to ECAS or ECAS Endowment Fund. You can also make transfers from your IRA to charity. You should consult your tax advisor before making a transfer from an IRA or gifting a life insurance policy.
Contact Carol Harrison, ecascarol@eastonchoralarts.org if you are interested in gifting non-cash assets.
