Prospective donors to the Mildred and Claude Pepper Foundation may wish to
consider the range of gift mechanisms which federal and state tax laws allow
and encourage. These include:
OUTRIGHT GIFTS: These gifts are exactly what their name implies: a direct
transfer of funds from the donor to the Foundation. Gifts in this category can
include gifts of cash, securities, tangible personal property that has increased
in value since its purchase, and appreciated real estate. Donors can deduct
the gift amount for such gifts up to 50 per cent of their gross income, and
should the gift total exceed the deductible ceiling, the remainder can be carried
over to succeeding tax years, up to five years. With careful planning, nearly
every outright gift to the Foundation can be fully deducted.
GIFTS THROUGH BEQUESTS: One of the easiest and most common ways to make a
gift to the Foundation is through a bequest in the donor’s will. Tax laws
encourage bequests, and this form of giving is particularly well designed for
those who are unable to make immediate outright gifts, but would like to aid
the Foundation as it addresses the issues of aging and health in the future.
Bequests may take the form of specific bequests, a residuary bequest, contingent
bequests, or testamentary trusts. Members of the staff of the Pepper Foundation
would be pleased to discuss the ways and means of making gifts through bequests
to support the work of the Foundation.
LIFE INCOME GIFTS: Life income gifts allow donors to give and receive at the
same time, thus making it possible for donors to give more to charitable causes
than they could out of current income or savings. In many cases, donors can
create trust instruments which allow them to receive income from the gift while
receiving tax credit for the larger amount. Life income agreements can be developed
with the Foundation through annuity trusts, unitrusts and gift annuities. Tax
advisors and attorneys should be consulted in the structuring of such gifts.
It is important for prospective donors to note that the ways in which they
contribute to the Foundation determines the tax benefits. All gifts to the Foundation
are deductible within the regulations of the Internal Revenue Service, but we
advise donors to consult with legal and financial advisors as they plan gifts
through any of these mechanisms.
All gifts to the Pepper Foundation are tax-deductible within the regulations
of the Internal Revenue Service.
