SOWING SEEDS FOR THE KINGDOM
Gifts of cash are the most common forms of outright gifts to Daystar Television. However, there are many creative, tax-wise ways in which outright gifts can be made. When you donate non-cash gift items to Daystar, you may deduct the fair market value of the item as a donation to a 501 (c) (3) non-profit organization. If you would like more information on tax benefits on making any of the following donations, or one that is not listed, please contact: Debbie Carter at 817-879-1997 or email her at:
Listed below are a just a few of the IRS allowable non-cash ways to donate.
Gifts of Property
Daystar welcomes such donations as homes, buildings, vehicles, aircraft, boats, motorcycles, jet skis, jewelry and other gifts which will help Daystar minister world-wide into every country of the world.
Heavy Equipment / Farm Equipment
• Tractors
• Caterpillars
• Back Hoes
• Road Graders
• Antique Tractors
Farm Property
• Farm House
• Farm Property
• Horse Ranch
• Ranch Property
Western Items
• Western Art
• Saddles
• Horse Trailers
Antiques
• Antique Furniture
• Antique Art
• Antique Covered Wagons
Gifts of Real Estate
A gift of real estate can provide considerable savings in capital gains taxes due upon the sale of appreciated property. At the same time, you receive a charitable deduction for the full market value of the property as determined by appraisal. Gifts of appreciated real estate are fully deductible up to a maximum of 30% of your adjusted gross income. The unused portion of your donation can usually be carried forward and deducted over a maximum of five subsequent years with the same 30% maximum each year, subject to certain limitations.
Most Americans do not have a large real estate portfolio. Those that do have found out they can enjoy significant financial benefits and provide a charitable benefit to a charity such as Daystar by making a real estate donation. A real estate donation to Daystar can help you rid yourself of nonproducing properties and also avoid capital gains taxes on highly appreciated property.
A real estate donation significantly reduces your legal and tax liabilities on the properties you donate and more efficiently attain personal financial goals while also supporting Daystar Television’s world-wide outreaches.
Appreciated Property
Assets in this category include personal residences, vacation homes, farms, commercial buildings, subdivision lots, or unimproved land as well as personal property such as collectible items and jewelry. A capital gains tax benefit may apply when donating these assets. Appreciated property can also be used for an outright gift and some properties can be used to fund a planned gift. You can contribute the property but retain the right to reside there for your lifetime or the combined lifetime of you and your spouse; the retention will affect the amount of the donation.
The same benefits, which accrue to gifts of appreciated securities, apply to gifts of appreciated real estate.
Gifts of Tangible Property
A donor should remember that all tangible personal property, such as paintings and other works of art, will be subject to estate taxes. By giving such items to the Daystar Television Network during your lifetime or at death, you may realize certain benefits and discover a new way to make a gift. Gifts of tangible personal property, which are generally related to Daystar’s purpose of spreading the gospel around the world, produce a deduction equal to the fair market value of the property.
Industrial Property
Tax Benefits of an industrial property donation can be very beneficial to those looking to rid themselves of unwanted industrial properties. Whether you are a private individual or a structured, legal corporate entity, you stand to gain many tax benefits with an industrial property donation.
Tax benefits vary according to your status as owner of an industrial property and according to the legal structure of your organization. An expert charity dealing in real estate transfers and/or your accountant, tax, or financial advisor can tell you more about the specifics of your situation, but the following is a general overview of the tax advantages of an industrial property donation.
• Individuals can benefit from an industrial property donation by deducting the full fair market value of the property if it has been held for more than a year.
• Corporate donors may deduct up to ten percent of the corporation's net profit (assuming you have held a controlling interest for more than a year and that the property has been held for more than a year).
• S-Corporations, Partnerships, and LLC's cannot claim a deduction for an industrial property donation, but the contribution will pass on a pro-rated basis (calculated according to percent ownership) to shareholders, who can then claim the deduction on their personal return. (*Partnerships and LLC's can claim deductions without having a basis in the company.)
In each instance, excesses can be carried forward and deducted for up to five years, so that the donated industrial property can continue to produce tax advantages for several years after the industrial property donation.
Industrial property donation can be either a generous exercise in philanthropy, a solution to a financial difficulty, or both. Talk more with your financial advisors that specializes in charitable real estate transfers and find out if an industrial property donation is in your best interest financially.
Gifts of Appreciated Securities
A gift of appreciated publicly traded securities can bring you tax savings by offering two significant advantages:
You receive a charitable deduction for the full fair market value of the security when the gifts are made, subject to the same limitations described under gifts of real estate. Usually the security must have been held for at least 18 months.
As with publicly traded securities, there are tax incentives for the donor to make gifts of property that has gone up in value. One is the savings in long-term capital gains tax, which is 15 percent for sales of appreciated business interests and real estate held at least 12 months, and 28 percent for tangible personal property like art and collectibles. Since the charity is tax exempt, it generally pays no tax when it sells the asset. In the best-case scenario, you can also deduct the fair-market value of the asset at the time of the donation, rather than what you paid for it. When making gifts to a public charity, donors are entitled to a deduction for up to 30 percent of adjusted gross income. Any deduction that can’t be taken in the year of the donation — say, because the donor’s income isn’t high enough — can be carried forward up to five years.
How It Works
Any security with a long-term unrealized gain (meaning it was purchased over a year ago and
has a current value greater than its original cost) may be donated to a public charity and a tax
deduction taken for the full market value of the security, up to 30 percent of the donor’s adjusted
gross income. Because the security is being donated instead of sold, capital gains taxes
are generally avoided.
Life Insurance
The contribution of an existing or new life insurance policy can provide a significant gift in a manner which can be especially attractive for younger donors. By designating Daystar as both the owner and beneficiary of a life insurance policy, your premiums may be tax deductible.
How does it work? Simply purchase a life insurance policy and name the charity as your beneficiary. You can leave the entire amount or you can name more than one beneficiary. For example, let’s say you have a $200,000 policy. You can leave $150,000 to your family and $50,000 to your favorite charity such as Daystar. It’s up to you to decide how much you’d like to be designated to each beneficiary. You can use term life insurance, universal life insurance or whole life insurance to fund your gift to the charity of your choice.
If you donate a term life policy to a charity, you can deduct the cost of the premiums from your taxes. If you donate a whole life policy, you can deduct the cash value of the policy as well as the cost of the premiums. In both cases, once you die, the charity gets the policy proceeds.
To learn more about how to leave a legacy contact your agent. Life insurance can allow you to contribute to those in need as well as provide financial security for your loved ones.
Assignment Gifts
Assets in this category include items that can be ‘signed over’ to a beneficiary or a charitable
organization, such as life insurance policies, Individual Retirement Accounts (IRA’s), bank accounts, pension plans, and other items. Assignment gifts can be given during one’s lifetime or through a will bequest. Assignment gifts make easy outright gifts and, in some cases, they can also fund a planned gift or particular donors’ interest.
Oil, Gas, Mineral Lease
Own an oil, gas or mineral lease, or surface rights? Why not donate it to Daystar and receive some healthy tax advantages, so we can convert your donation to help those less fortunate around the world?
Donate Stock
Many donors choose to make gifts to non-profit organizations using long-term appreciated stocks and mutual funds due to the attractive tax advantages associated with such gifts.
The benefits available to you when making a contribution of stock or mutual funds may include:
• Avoiding federal and state tax on the capital gain.
• Receiving an income tax deduction for the full market value of your gift if you itemize deductions on your tax return and have held the assets one year or longer.
• Making a larger gift at a lower original cost to you.
Appreciated Securities
Stocks, bonds and mutual fund shares held for more than one year can be given as a gift, and capital gains tax benefits may apply when donating these assets. (The present value of these is counted for tax deduction purposes, yet you do not normally pay tax on the difference between your original cost and the present, higher value – which would happen if you were to cash them before donating them.) Appreciated securities can be used for an outright gift or to fund a planned gift.
Note: Publicly traded securities and bonds can be used to make a gift to Daystar Television. A donor is entitled to a charitable tax deduction equal to the value of the securities on the date of the gift. As a non-profit organization, Daystar is able to sell the securities and employ the proceeds, without reduction by capital gains taxes.
Donate to Daystar When Selling on Ebay!
Daystar is excited to offer you an option to help spread the Gospel of Jesus Christ to the World using eBay, the largest online auction community. EBay has over 100 million registered users, and is the largest online auction site in the world. EBay has partnered with Missionfish.org to handle its eBay Giving Works program and since 2003, they have handled over $91 million in donations to more than 14,000 non-profits. We feel that this is a great opportunity to raise donations for Daystar and help you to clean out your garage or closet. Please list your for sale items with eBay (www.eBay.com) and choose Daystar to receive all or a portion of your sales.
Here is how it works: Once you list your item for sale, they will ask you if you wish to donate a percentage of your sales price to your favorite charity. Simply type in yes. There will be several non-profits already listed and a line that says, “Or select another non-profit you love.” Type in “Daystar Television” and our name will appear. You then decide how much (percentage) of your selling price you wish to donate to Daystar.
Please see the example Ebay Page by clicking here.
Donating Depreciated Stocks/Assets
Cutting Your Losses
There is a silver lining to your dwindling portfolio: By getting rid of some losing investments now, you can reap some serious tax savings. Sell those stocks before the end of the year and you can deduct the resulting capital losses against any capital gains you may have logged earlier in the year. Then, you can write off the remaining amount against up to $3,000 in ordinary income. Any excess capital losses can then be carried forward to future years.
Give Some Money or Stock Away
The IRS allows people to give any individual a $12,000 tax-free gift. Married couples can combine their gifts for a total of $24,000. And those who give to children and grandchildren can actively reduce their future estate taxes. People with children who recently graduated from college or elderly parents on a limited income may want to consider gifting them stock instead of cash. During 2008-10, those in the 10%-to-15% tax brackets will pay 0% on long-term capital gains. Also, if someone has holdings that have fallen in value, this provides an opportunity to gift more shares at a lower cost.
Matching Gift Programs
Double, or even triple, your gift to the Daystar Television Network by having your employer/spouse’s employer match your donation! Thousands of companies offer to match their employee’s charitable contributions. Some require forms to be completed by the employee; others have automated programs that only require a phone call. Most corporations have guidelines that the non-profit organization and employee must meet before a donation can be matched. Your company’s benefits or human resources department can give you more information about their program and supply the proper forms to complete. Mail your form, along with your contribution to:
Daystar Television Network
Attn: Debbie Carter
P.O. Box 612066
Dallas, TX 75261
Selling? Or Donating A Business
• Do you have a business you would like to sell?
• Do you have a business you would like to pass down to a family member?
• Are you hoping to retire from your family business?
• Would you like to consider donating your business for tax advantages?
• Would you like to minimize your capital gains taxes on your business?
If you own a business, you might consider the idea of a Charitable Remainder Unitrust (CRUT). By organizing one, a person can have a legal and ethical method of avoiding a huge tax bill. At the same time, you have an opportunity to help a worthy cause like Daystar Television by donating whatever money is left in the trust at the time of your death If you are considering reaping a harvest of some magnitude by selling your company or some other valuable asset, you might want to investigate creating your own Charitable Remainder Unitrust, with you as the managing trustee.
Charitable Gift Annuity
A creative way to ‘give and receive,’ the Charitable Gift Annuity is one of the oldest, simplest and most popular methods of making a deferred charitable gift. With a gift annuity, the principal of the gift remains invested for the life of the contract and after the death of the last surviving beneficiary, the remaining principal becomes a gift to Daystar Television. The annuity rate is determined by the birth dates of the income beneficiaries at the time the annuity is established, and the minimum age to establish a gift with immediate payments is 50. An income tax deduction is given in the year the gift is made and capital gains tax benefits may apply when funding the gift annuity with appreciated securities.
Deferred Charitable Gift Annuity
The facts regarding the deferred gift annuity are same as the above charitable gift annuity. The only difference is that the annuity payments are deferred to begin at a future date at least one year from the date the gift is established. The longer the payments are deferred, the higher the rate of return. This is an excellent way to supplement retirement income with the assurance of a guaranteed fixed rate of return. The deferred gift annuity can be established as a single-life or two-life, and after the death of the last surviving beneficiary, the remaining principal will go directly to Daystar Television.
Charitable Trusts
A charitable trust is another creative gift that allows a donor to ‘give and receive’ and is also an excellent way to supplement retirement income or healthcare costs. Every trust is individually unique as it is established to meet the individual’s needs and charitable intent. Funding assets may include cash, appreciated securities, real estate or business interests. Capital gain tax benefits may apply when funding a trust with appreciated assets.
Will or Living Trust Bequests
Establishing a personal will or living trust offers peace of mind through the assurance that one has made known how personal assets should be distributed after death. Bequests can be designated to Daystar Television in several different ways, such as:
• Stating a specific amount or specific asset
• Stating a percentage
• Designating the remainder or residual of estate holdings.
Note: “Intestate” is the term for a person who dies without a formal, legal will. If this occurs, everything you possess is given away by strangers to other strangers. A well-planned will puts you in charge. It is your directive to everyone else about your personal wishes, such as:
• Distributing cash, investments, real estate, and personal property to family and other loved ones
• Providing property management for heirs who may not be prepared to manage their financial affairs.
• Reducing taxes and estate settlement costs
• Making “gifts of a lifetime” to charitable interests
More on Bequests: A bequest is a planned way to sow seeds for the Kingdom by including Daystar in your will. With your attorney’s help, this can be a way to save on or avoid estate and gift taxes. Distributions can be made either as a specific dollar amount or as a percentage of the estate. Gifts left to Daystar Television in your will help us to continue to spread the gospel around the world.
A bequest can take one of the following forms:
• You designate a specific dollar amount to be transferred to one or more charities such as Daystar Television.
• You can designate property assets, such as real estate, artwork and other valuables to be used
to fund a charitable gift.
• A percentage of your estate plan can be designated for charitable purposes to ensure that the
relative values of your gifts remain equal.
• You can determine that what remains after all other gifts to loved ones have been fulfilled goes
to charity.
If you’ve already decided to include Daystar Television in your will and you have contacted your legal and financial advisors; here are some sample statements that you can immediately include:
As residual:
I, _________________________, give, devise and bequeath all the residue of my estate, including real and personal property, to ___________________________ (Word of God Fellowship inc. / dba Daystar Television Network).
As a percentage:
I, _________________________, give, devise and bequeath an amount equal to ______% of my estate to (Word of God Fellowship, Inc. / Daystar Television Network).
As a specific amount:
I, _____________________, give, devise and bequeath the following items to (Word of God Fellowship inc. / dba Daystar Television Network).
By Giving
If you're like many consumers you're probably trying to cut back on spending. There is one expense, however, that's worth making: giving to charities like Daystar Television. Not only do you help us reach souls around the world; including countries like Israel, but it will also do wonders for your tax bill. Making donations of money or non-cash items to qualified charities like Daystar before year's-end and you can deduct a good portion of that amount from your 2008 tax bill.
Daystar Television with the assistance of Debbie Carter, Daystar’s Gift and Estate Design professional, can provide non-discretionary administrative services to you the donor at no cost to you. If you would like to make a special non-cash gift to Daystar please contact Debbie Carter at: 817-879-1997 or email