There is no easier way to support PACTT and garner a charitable deduction than by simply writing a check or using your credit card to make a contribution via the PACTT website. An unrestricted gift gives PACTT the freedom to use your contribution where it is needed most. You may, however, choose to restrict your gift to a specific program or area of your own particular interest. If you itemize deductions on your income tax return, your gift of cash will be tax deductible.
Gifts of Securities or Appreciated Property
Instead of selling stock or other property that has increased in value, you may want to donate it to PACTT and receive two tax benefits. A gift of stock or other securities, including U.S. savings bonds, may provide the donor with two tax advantages. For example, by donating appreciated securities to PACTT you may avoid the tax on the appreciation and in addition receive a tax deduction for the fair market value of the gift. Gifts of other appreciated property such as real estate, art or jewelry also allow the donor to avoid the capital gains tax that would be due if the property were sold, and to take a tax deduction for the fair market value of the property.
Planned gifts allow you to arrange for a donation now that will benefit PACTT in the future. Many of these arrangements can have tax benefits, and some can even increase your lifetime income or provide income for your loved ones. Here are some examples.
Arrangements that Provide Income to You or Your Loved OnesBy setting up a special trust or annuity, you can establish an income stream for yourself or your loved ones while benefiting PACTT and reducing taxes. In some cases you can start with a specific amount and continue to make contributions in subsequent years. A charitable remainder trust allows you to fund a trust that provides you or your loved ones with payments over life and give the balance to PACTT. A charitable gift annuity allows you to make a gift to PACTT while retaining a fixed income for your life or the life of a loved one. A charitable lead trust allows you to fund a trust that pays PACTT the income for a certain time, and then returns the trust assets to you or passes them to your heirs. The tax benefits of these arrangements include an immediate tax deduction for the value of the gift to PACTT, as well as potential capital gains, estate and gift tax savings.
Charitable BequestA bequest is a provision in your will or revocable living trust that names PACTT as the recipient of a fixed sum of money, or a percentage of your assets, or a specific asset. A charitable bequest can eliminate or reduce estate taxes and in some cases income taxes due at death. Bequests are flexible because you may change your mind if circumstances change.
Naming a Beneficiary
You may name PACTT as the beneficiary of an insurance policy, a retirement account, a certificate of deposit or your U.S. savings bonds simply by filling out a beneficiary designation form or a payable-on-death statement. Your assets remain available for your support during life, and at death your estate may be eligible for income tax deductions and a reduction in the estate tax. As with a bequest, if circumstances change, you may change the beneficiary designation.
Making a gift in memory or in honor of a family member or friend is a great way to help PACTT, while at the same time helping loved ones channel their grief in a positive direction. The named individual is remembered through a special fund that may or may not be restricted to a specific program.
Honor and Memorial Tribute Gifts
A gift in honor/memory of a loved one — family, friend, or co-worker — is a wonderful way to pay tribute. For each honor/memorial gift, PACTT sends notification of the gift to the individual — family, friend, or neighbor of the remembered or honored person — that you designate. (Please include the name and address of the individual(s) you would like us to notify along with your gift.) Families may prefer to ask for memorial gifts through the obituary. The notice in the obituary might read, "In lieu of flowers, the family requests contributions be made in memory to PACTT: 712 Belleforte Ave., Oak Park, IL, 60302"
Charitable Gift Annuity
A charitable gift annuity is a contract in which PACTT, in return for a transfer of cash, marketable securities or other assets, agrees to pay a fixed amount of money to one or two individuals, for the remainder of their lifetime.
A person who receives payments is called an "annuitant" or "beneficiary". The payments are fixed and unchanged for the term of the contract. A portion of the payments are considered to be a partial tax-free return of the donor's gift, which are spread in equal payments over the life expectancy of the annuitant(s).
The contributed property (the gift), given irrevocably, becomes a part of PACTT's assets, and the payments are a general obligation of PACTT. The annuity is backed by the entirety of PACTT assets, not just by the property contributed. Annuity payments continue for the life/lives of the annuitant(s) no matter what the investment experience of the gift annuity fund. There are three types of charitable gift annuities: Immediate, Deferred, and Flexible.
Immediate Gift Annuity
With an Immediate Gift Annuity, the annuitant(s) start(s) receiving payments at the end (or the beginning) of the payment period immediately following the contribution. Payments can be made monthly, quarterly, semi-annually or annually.
Deferred Gift Annuity
With a Deferred Payment Gift Annuity, the annuitant(s) start(s) receiving payments at a future time, a date chosen by the donor, which must be more than one year after the date of the contribution. As with immediate gift annuities, payments can be made monthly, quarterly, semi-annually or annually.
Flexible Gift Annuity
A Flexible Gift Annuity means that the donor does NOT have to choose the payment starting date at the time of the contribution. The annuitant (who may or may not be the donor) may choose the payment starting date based on his/her retirement date or other considerations. The older the annuitant(s) when the payments start, the larger the payments will be. This concept provides some of the flexibility offered by commercial annuities sold by commercial insurance companies. The donor would choose an initial target date for the payments to start. The charity would then offer a range of payouts with differing fixed payment amounts and differing starting dates based on earlier or later years. Since the charitable deduction remains fixed, the annuity rate for each starting date would have to change. The payments would be lower if the starting date was earlier and higher if the starting date was later. Each annuitant would have to determine on an annual basis whether or not they wish the annuity payments to start that year.
PACTT offers three versions of each type of charitable gift annuities:
Gifts-in-kind are non-monetary items of tangible personal property such as art, property, collectibles, equipment, automobiles, inventory, and other personal assets or materials that represent value to PACTT. We welcome many gifts-in-kind and are most grateful when donors think of us with this form of philanthropy. However, gifts-in-kind can also present PACTT with issues of liability and extended budget issues. Therefore, it is appropriate that there be guidelines for the acceptance of gifts-in-kind and that both donors and PACTT have an awareness and understanding of any ramifications of such a gift may present. Please refer to PACTT’s gift-in kind policy for further details. Unreimbursed expenses such as food, professional services, and limited use of private property are not considered tax-deductible, charitable gifts-in-kind by the Internal Revenue Service.
When offered a gift-in-kind, PACTT may choose either to use or sell the gift-in-kind property or to decline the gift. When evaluating the acceptance of gift-in-kind, the PACTT will consider if the gift is needed, wanted, and/or has use within the scope of our mission or if it can be sold to benefit PACTT. Consideration will be given to the cost of accepting the gift (e.g., shipping and handling costs, installation charges, licensing fees, etc.), the long-term viability of the gift (e.g., maintenance costs, associated personnel needs, storage fees, insurance rates, copyright issues, etc.), and the resale market if the gift is to be sold. Some gifts, of course, will require paperwork documenting ownership (e.g., a signed title for a house, car or other item).
If PACTT accepts a gift of this type, then the donor of the gift-in-kind may claim a charitable deduction for the fair market value of the gift if it is accepted for PACTT’s tax exempt purposes. If a gift-in-kind will not be used for PACTT’s tax exempt purposes, a deduction can only be claimed for the property's cost basis (usually the original amount paid by the donor for the property).
Matching employee gifts
Maximize the Impact of your Gift to PACTT
Many companies in the USA and abroad support private philanthropy by matching employee gifts to nonprofit community organizations like PACTT. These companies encourage their employees to contribute to charitable organizations via matching gift programs. Some provide matching funds to support employee volunteer hours. Most of these programs match contributions dollar for dollar, and some will even double or triple the amount of your gift.
Your employer may have a matching gift program that adds to the value of your gift to PACTT. Simply obtain a form from your employer, fill out the donor section, and send the form to the PACTT Development Office – 712 Belleforte, Oak Park, IL, 60302 or email@example.com
Please check with your employer to see if your company offers a matching gift program that will match your gift or volunteer hours to PACTT. If your employer requires an Employer Identification Number (i.e. Federal Tax Identification Number), please use 36-3904240. Matching gifts from an employer are an excellent way to maximize the impact of your donation in support of PACTT.
PACTT holds two major special event fundraisers annually: the Work of Heart Dinner and the PACTT Golf Classic. These events raise awareness, celebrate accomplishments of PACTT and build relationships, helping potential donors to feel a connection with PACTT. They also present an opportunity to bring in new donors and introduce them to the mission of PACTT. There are several ways to support PACTT through our special events.
For more information contact: Terry Herbstritt PACTT Development Office 773-338-9102 x2424 firstname.lastname@example.org
For more information on opportunities to support PACTT, contact Development Director Terry Herbstritt, 773-338-9102 x2424, or email@example.com