Habitat for Humanity of Nodaway County relies on contributions from local citizens, churches, businesses, organizations, corporations, and individuals.

How to Give

The federal government encourages charitable giving by providing some significant tax benefits when you make a gift to a qualified charity.

The following may be helpful as you consider the best way to make your year-end gift.

Your gift may be made in a number of ways, depending on your particular situation. Careful planning is the key to maximizing your benefits.

Cash

Cash is still the most popular way to make charitable gifts. Your gift of cash to a qualified charity prior to December 31 could cost you much less at tax filing time.

For example, if you make a $2,000 gift before December 31, and are in the 30% marginal tax bracket, your gift could save you $560 in taxes.

The federal government recognizes the contribution non-profit organizations make to society and assists in making the gift through tax deductions.

Sample Savings

* Figures assume 30% Tax Bracket

Missouri Housing Development Tax Credits

Real Estate

Securities

Gifts of appreciated securities or stock can be one of the most advantageous ways of giving. If your stock is one you have owned for more than one year, you may deduct the full fair market value of the stock as a charitable contribution, while bypassing all capital gains taxes.

An example:

• You donate qualifying long-term appreciated stock with a fair market value of $10,000.
• If you are in the 30% tax bracket, this donation will reduce your tax liability by $3,000.
• If the above stock had cost you $1,000, you could have paid capital gains taxes of $1,800.
• Total tax savings of $3,000 + $1,800 = $4,800.

Insurance

Life insurance is a unique way to give to charity. to qualify, the charity needs to become the owner and beneficiary. No incidents of ownership should be retained.

Charitable Trust

The trust provides a unique way to give, by offering substantial tax savings while providing an annual income to you or your family.

The trust is funded with an asset - appreciated securities or cash are usually best. Within the trust, the assets can be sold and the proceeds reinvested to produce a monthly income stream. The donor and his/her designated income beneficiary will receive monthly income for life.

Immediate benefits of a trust include:

1. A current income tax deduction.
2. Bypass of capital gains taxes.
3. Usually an increase in income.

There are also several future benefits.

An American Tradition

We will be pleased to provide you with more information and assist in any way as you consider the possibilities for your year-end gifts.

Our assistance is provided without cost or obligation and is completely confidential.