How to Donate |
By contributing to the NACE Foundation, you are making an investment, not only in the future of our industry, but in the future of our youth. We devote a considerable amount of time and energy into creating exemplary programs which are designed to cultivate the next generation of corrosion engineers. Traditionally, many potential donors have assumed that the only possible gift is one made outright. Although we welcome and encourage outright gifts, there are also other ways to financially support our programs through Planned Giving. There are several ways to donate* and the Foundation is equipped to accept gifts of almost any kind, including:
Giving Levels Lifetime Giving Levels (Recognized at this level for cumulative or one-time giving)
Annual Giving Levels
In order to continue on our path, we need your support. All donations are tax deductible, as we are a non-profit 501 (c) (3) organization. We will be happy to provide a response to any of your questions. Please contact NACE Foundation. It is important to note that federal tax rates and laws change periodically. In addition, these examples do not include state tax, which vary from state to state. Therefore, we urge you to consult your estate planner, accountant or attorney when planning a gift. Gifts may be made during your lifetime or in your Will of Testament. Gifts may consist of cash, securities, personal property, or real estate. There are even ways you can give something to us—real estate, for instance—yet still retain the right to use it Because of the intricacies of the tax laws, your method of giving can affect the benefits both of us will receive. That's because the laws actually favor charitable giving, by providing for substantial tax deductions. In essence, you are rewarded for making a gift in support of the NACE Foundation.
Example: An Outright Gift is a gift transferred immediately from the donor to the NACE Foundation. This category can include cash, securities, tangible or intangible personal property, or real estate. Gift of Cash
Example: Because of the five-year carry-over, the remaining $15,000 can be deducted the next year (assuming his adjusted gross income is $30,000 or more). So his $50,000 gift is FULLY deductible. Giving appreciated stocks or bonds are a superb way to show support for the exemplary educational programs created by the NACE Foundation. With certain limitations, you can deduct the full fair market value of long-term appreciated securities - that is, securities you have owned a certain amount of time (the time period varies depending on when you obtained the asset) and that have increased in value. Thus you can give away appreciated property and usually avoid the tax on the gain. Gifts of Securities are deductible up to 30% of your adjusted gross income, with five-year carry-over. Under certain circumstances, however, you can choose to qualify for the 50% adjusted gross income ceiling by reducing the value of your gift by the full amount of its appreciation -- that is, to its cost basis (what you paid for the asset). Example: The Internal Revenue Service allows you to take a tax deduction on the full fair-market value of a gift stock. IRS rules direct you to calculate its value by figuring the mean between the high and low on the day you transfer it. That means lots of charitable mileage out of shares you may have bought at rock-bottom prices.
Example: Tangible Personal Property You may claim the deduction in the year the gift is made - up to 30% of your adjusted gross income (for long-term capital gain property) and carry it over, if necessary, for up to five years. Under certain circumstances, you may choose to qualify for the 50% ceiling by reducing the value of your gift to its cost basis. Your income tax deduction will depend upon the nature of the gift and its correlation to our stated, tax-exempt mission. If our use of the gift is related to our tax-exempt purposes, it qualifies for an immediate income tax deduction equal to its appraised value on the date of the gift. If our use of the gift is not related to our tax-exempt purposes, your charitable deduction is restricted to the asset's cost basis. Each gift item must be evaluated on an individual basis to determine whether or not it is related to our tax-exempt mission. For information concerning any gift you might be considering, please contact NACE Foundation.
Intangible Personal Property
Unlike tangible property, intangible personal property does not have to be scrutinized for income tax purposes - for its relevance to our tax-exempt mission. As far as gift and estate taxes are concerned, tangible and intangible personal property are treated the same. An outright gift of tangible or intangible personal property is not subject to estate or gift taxes. Almost any type of real property (personal residence, vacation home, commercial building, or an undeveloped parcel of land) can be the subject of a gift given to the NACE Foundation. If the property is a long-term capital gain property and given outright, you'll generally avoid any tax on the gain, reduce your taxable estate by the value of the gift, and receive a charitable contribution deduction for 100% of the fair market value of the property. Your actual income tax savings will depend on your tax bracket. You may deduct the value of the gift, up to 30% of your adjusted gross income. Under certain circumstances, however, you can choose to qualify for a 50% annual deduction by reducing the value of your gift to its cost basis. Due to special provisions in the tax laws, you can gift the NACE Foundation your personal residence; yet continue to live there for the remainder of your life. In addition, you can provide that your spouse may live there for his/her lifetime; or you may continue to live on the property for a set number of years. Either way, you will receive an immediate income tax deduction for the contribution. The property does not have to be your primary residence (it can be a vacation or second home), as long as you use the property as a personal residence. You can also give stock in a cooperative apartment if the apartment is used as a personal residence. The charitable deduction is less than the full value of the property and equals the value of the remainder interest given to the Foundation (what IRS estimates is the present value of our right to receive the property in the future). There are also charitable deductions available for estate or gift tax purposes, if the life interest is given to one or two individuals and the remainder interest is given to charity. The estate or gift tax deduction is equal to the value of the remainder interest.
Example: As you can see, the tax laws are specific regarding this matter, therefore, we recommend you receive advice from a tax attorney regarding this and all planned giving opportunities. Life Income Gifts provide income to the donor or the donor's chosen beneficiary for his or her lifetime. The donor makes a gift to a life income gift vehicle, such as a charitable gift annuity or a charitable remainder trust. Then:
Charitable Gift Annuities
Deferred Charitable Gift Annuity
Example: When Mr. Smith becomes 65, his taxes may be lower, because income often declines after retirement. If, instead of cash, Mr. Smith had chosen to donate appreciated property worth $50,000 with a cost basis of $25,000, the results of his gift would have been as follows:
Should he die before the entire gain is reported, the unreported gain is forgiven. Gift of Undivided Interest in Property You are allowed a charitable deduction for the value of an undivided portion of your entire interest in a property. This consists of a fraction or a percentage of each substantial right or interest in the property. The donated interest must extend over the entire term of your interest.
Example: Mrs. Smith is entitled to a deduction of $100,000 (4/10 or 40% of $250,000), subject to the 30% adjusted gross income limitation on gifts of appreciated long-term capital gain property. One of the easiest and most common ways for you to make a gift to the NACE Foundation is through a bequest in your Will. The tax laws encourage bequests and this is an excellent way to support our educational programs. Bequests work particularly well for those who are unable to make an outright gift, but would like to aid us in the future. There are three basic categories of bequests:
There are two variations of bequests:
When you make a bequest to the NACE Foundation, your taxable estate is reduced by a 100% estate tax deduction for the amount of a cash bequest, or the fair market value of the property. This deduction results in tax savings whenever the taxable estate (after other deductions) exceeds the amount offset by individual estate tax credits. Because the estate tax rate schedule is progressive (the rate of taxation increases with the size of the estate), the larger the taxable estate, the greater the potential tax savings per dollar given. Specific bequests take the form of an outright gift of securities, a specific fund of money, or other property. In your Will, you describe one item and you give that particular item to an individual or to an organization such as the NACE Foundation. Specific bequests are honored after debts and expenses of your estate are paid and before other bequests are distributed. General bequests do not provide for the source of payment of the bequest. For instance, you may wish to transfer $25,000 to your child. With a specific bequest, you might designate $25,000 from your Money Market account at XYZ National Bank. With a general bequest, you would simply state, "I give the sum of $25,000 to my son, Alan." Your executor may honor the bequest from any available source in your estate. With a residuary bequest, you take care of what remains of your estate after all expenses, debts and taxes have been paid and all specific and general bequests have been honored. If you do not make arrangements for your residuary estate, any asset not mentioned specifically in the Will is treated as if you had died interstate (without a Will). Contingent: This type of bequest is not one of the basic categories. Instead, it's a rider that attaches itself to a bequest and comes into play only when certain conditions are met. It is an excellent way to include the NACE Foundation in your Will. Charitable: We, for instance, can be the beneficiary of a specific, a general or residuary bequest. You may make charitable bequests either outright or in trust (using one of the excellent gift mechanisms mentioned earlier). At some point, you may determine that life insurance no longer has the financial significance for your family that it once did. In that case, you may wish to make a gift of the policy to the NACE Foundation.
There are two ways to do this:
Whether you designate the NACE Foundation as the owner or the beneficiary on your life insurance policy, it will enable you to make a contribution that will have a significant impact on the future of the NACE Foundation and our programs.
Example: Intellectual property (patents, copyrights, trademarks, trade secrets, artworks, musical compositions, and other similar or related property rights) are an increasingly popular form of charitable giving. Such gifts can offer attractive tax-planning advantages for philanthropic-minded individuals. Generally, an income tax charitable deduction is allowed for a gift of intellectual property if such a gift represents an individual's entire interest in the property, regardless of whether the donor owns 100% or not. Such a deduction may also be taken for a gift of a fractional interest, usually described as a percentage of an intellectual property interest held jointly with another. A deduction may also be taken for a donation of either the copyright for a work of art, or for the donation of the artwork itself. Depending on the item, these may be regarded as separate property interests. Example: Mr. Smith is the co-author of a popular college textbook on molecular biology. Each of the two authors owns 50% of the copyright. Mr. Smith may contribute and deduct his full 50% share of the copyright since that represents his entire interest in the property. A charitable donation of less than a donor's entire interest in an intellectual property is generally not deductible. In such cases, proper planning can often structure transactions so that similar results may be obtained while allowing for deductibility. Example: Mr. Smith is the co-author of a popular college textbook on molecular biology. Each of the two authors owns 50% of the copyright. Mr. Smith decides to donate half of his 50% copyright interest to charity. His gift would not be deductible since he would contribute less than his entire interest in the property. In donating intellectual property, the taxpayer cannot expect or receive a full benefit or in-kind return in exchange for the transfer. Any consideration that the donor expects in return must be of token or nominal value and not a quid pro quo [see I.R.C. §6115(b)]. If the taxpayer receives a return benefit incidental to his gift, the taxpayer must reduce the amount of contribution relative to the value of that benefit.
2004 Token Benefits Limits: "Token benefits" provided in conjunction with a fundraising campaign (and whose value is sufficiently small) are disregarded in applying the quid pro quo rules and the "contemporaneous written acknowledgment" rules [IRC §170(f) (8)] generally applicable to charitable gifts of $250 or more [Rev. Proc. 90-12, 1990-1 C.B. 471]. The dollar limits for determining whether a return benefit to the donor is of "token value" are inflation-adjusted each year. To assure that the full tax benefits of charitable gifts of intellectual property are obtained, donors should work closely with representatives of the charity involved, and with their own tax advisors. Natural resources which may be donated to the NACE Foundation include:
State and federal laws apply varied rules as to their characterization of these natural resources as real property, tangible or intangible personal property, etc. A qualified appraisal is necessary for the donor to substantiate the amount claimed for a deduction. |
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