Converge Southwest: Ways of Giving

The information shown here is not exhaustive---it is meant to stimulate further inquiry. We have knowledgeable staff available to help you explore what gift option might best meet your goals. However, it is our expectation that you will also consult your own financial advisor before finalizing your gift. The Converge Worldwide Foundation is available to manage planned gifts in behalf all CWW ministries.

CURRENT GIFTS

Cash Gifts

Tax deductible if donor itemizes deductions
Up to 50 percent of adjusted gross income can be deducted in one year
Excess may be carried forward for up to five additional years
Actual tax savings depends on tax rate
The higher the tax rate, the greater the benefit

Pledges

Payable over a three-year period (or longer in some cases)
Deductible in the year the gift is made

Matching Gifts

Takes advantage of programs offered by many employers
Leverages donor’s gift to a higher level

Appreciated Property

If qualified as a long-term capital asset (held for one year and a day), property should be given outright
Avoids payment of capital gains tax due if property were sold
Deduction given for full fair market value of property, limited to 30 percentof adjusted gross income
Excess beyond 30 percent may be carried forward for up to five additional years
Real property gifts subject to CWW gift acceptance policy

Property that Has Lost Value

Donor sells the property, and takes a loss for tax purposes (if applicable), then contributes the cash received from sale
Deduction may be available for both the loss and the charitable gift

Life Estate

Possible for donor to make gift of residence, farm, or vacation home, reserving right of occupancy as long as donor and spouse live
Irrevocable gift qualifies for immediate tax deduction based on present value of remainder interest
Assign directly to the Converge WorldwideFoundation

Closely Held Stock

Produces a current tax deduction equal to the fair market value of the stock
Corporation may redeem shares of the stock from Converge Worldwide
Could reduce liability for accumulated earnings tax

DEFERRED GIFTS

Interest Free Loans

Donor allows CWW to use funds up to $250,000 on an interest free basis
Donor pays not income tax on the earnings
Donor receives no income tax deduction, but retains right to request principal
If loans is active at donor’s death, note can be repaid to the estate or it can be “forgiven” and provide a charitable estate tax deduction

Charitable Gift Annuity

Provides a fixed income for lifetime(s) of one or two annuitants
Amount paid determined by either (1) rates recommended by the American Council on Gift Annuities, or (2) a lower rate selected by donor
The older the annuitant, the higher the annuity rate and level of income
An immediate income deduction available for a portion of the deposit for those who itemize deductions
A portion of annual annuity income exempt from tax

Deferred Gift Annuity

Offers increased income and tax benefits
Same basic features and benefits of a gift annuity
Income delayed until a future date chosen by donor
Rate of return and tax deduction dependent on length of deferral period

Charitable Remainder Trust

Trust assets are funds or property contributed by donor (usually $100,000 or more)
May be funded with cash, stock, mutual funds, bonds, and real property
Real property should be free of mortgage encumbrance
Annuity Trust provides fixed amount of income each year
Unitrust provides a variable level of income each year

Charitable Lead Trust

Donor provides assets for use for a limited period of time
Funds are invested to provide income for CWW ministries
Assets returned to donor (or donor’s estate) at end of designated period
Can fulfill a pledge while possibly reducing estate and gift taxes that might otherwise be due on assets given directly to heirs

Wealth Replacement Trust

Protects inheritance interests of heirs
Makes assets available to the ministries of CWW either outright or through a planned gift
The donor uses tax saving created by gift to purchase a life insurance policy to benefit heirs

Life Insurance

Make CWW sole owner and beneficiary of paid-up policy
Receive income tax deduction for the cash surrender value of policy
If policy not fully paid, assign ownership to CWW and receive a tax deduction for amount donated to pay premiums

Bequests

Outright bequests are not subject to estate tax
Bequest of a dollar amount or specific assets
Residual bequest of all or a portion of estate after taxes, expenses, and other bequest amounts
Contingent bequest to take effect if other beneficiaries die before the donor
Simple to add to a new will, or by creating codicil to existing will
Also includes bequest created through living trust

Pay on Death Accounts

Donor names CWW as beneficiary on bank account, Individual Retirement Account, or any other account that allows a beneficiary designation
This asset is removed from taxable estate Endowment
Available for donors that want to provide continued benefit to a CWW ministry for many years to come
Subject to CWW Foundation policy