You can turn your assets into income, while making an important donation to PCRM’s crucial work.
If you are holding stock that has grown in value over the years but is not yielding much in return, consider using it to fund a charitable gift annuity—a life-income gift at PCRM. You’ll pay no capital gains tax on the transfer, and will receive lifetime payments from your gift plan that equal or surpass the dividends the securities are paying now. The result is that you can make a substantial gift to PCRM while diversifying your portfolio and securing a stream of income.
Here’s how a charitable gift annuity works: You transfer cash or securities to PCRM and PCRM pays you, or up to two annuitants you name, a lifetime annuity. The principal passes to PCRM when the contract ends.
When you use appreciated securities to fund an annuity, you receive gift credit for the full amount and a tax deduction for a portion of the fair market value of the securities, no matter what you originally paid for them. You pay no capital gains taxes.
Important note: To take advantage of the tax benefits, stock must be transferred directly to PCRM. Don’t sell stock first and then give PCRM the proceeds. Even though you are making a gift, the Internal Revenue Service will impose capital gains tax on your sale, eliminating a key tax benefit of your gift.
To learn more about using securities to fund a gift annuity or another type of planned gift, please contact Betsy Wason at 1-866-416-7276, ext. 366, or email@example.com. Learn more by visiting PCRM.PlanYourLegacy.org.
Betsy Wason, C.F.R.E.
Director of Development