Outright Gifts

For further information on these guidelines, please contact the Office of Gift Planning.

Gift of Securities
Gift of Securities are most often publicly traded, appreciated stock held "long-term", meaning at least a year and a day. Mutual fund shares, bonds and other types of stock are also possible. Owners of appreciated assets can obtain substantial tax benefits by transferring those assets directly to a Masonic charity. Donors of appreciated securities held long-term will receive an income tax deduction equal to the fair market value of the stock on the effective date of their gift with no tax incurred on the appreciation.

Gift of long-term appreciated securities are deductible up to 30% of adjusted gross income with a five-year carryover for any "excess" deduction amounts.

Gift of Retirement Assets
Careful planning for the disposition of retirement plan assets can help to avoid undesirable tax costs. In certain situations, gifts of retirement account balances to a Masonic Charity may improve the donor's overall tax consequences, increase the amounts passing to heirs, and reduce income and estate taxes.

Because qualified plan assets are generally subject to both income and estate taxes at death, a donor may want to consider giving certain qualified plan assets, including IRA assets, while leaving certain capital assets, such as stock, to the donor's heirs.

Alternatively, a donor could establish a charitable remainder trust at his or her death to receive qualified plan assets. The trust would make payments to the donor's heirs for the lifetime of a designated person, or for a term of not more than 20 years, with the remaining assets passing to a Masonic charity at the death of the designated person or the end of the designated term.

Any income tax on the plan assets transferred to the charitable remainder trust would then be deferred until paid to the designated heirs, and the estate would receive a charitable deduction based on the remainder value of the assets passing to the designated Masonic charity.

Gift of Real Estate
A gift of real estate, especially a gift of a principal residence or vacation residence, may be an attractive way of making a substantial donation to one of the Masonic charities. Many of the same benefits provided for gifts of appreciated securities, such as a deduction based on the fair market value of the property and avoidance of any capital gains, are available for appreciated real estate. Donors may give the entire property or a fractional interest in real estate to a Masonic charity. Gifts of real estate are subject to specific policy guidelines. For further information on these guidelines, please contact the Office of Gift Planning.

If you are considering a real estate gift, please consider some of the following possibilities that may be advantageous to you:

A gift of an appreciated piece of real estate owned for more than one year and a day may receive a tax deduction for the full current market value, thus avoiding any capital gains on the appreciated real estate. Your gift is subject to the same 30% ceiling for adjusted gross income as for securities.

You can also make a gift of your personal residence, vacation home, or farm to a Masonic charity and retain the right to live in it for the remainder of you and your spouse's lifetimes. During the time that you or your spouse are living at the residence, you would be responsible for the maintenance, insurance, and taxes on the property. A substantial income tax deduction would also be available to you based on the appraised value of the property. The size of this deduction is dependent upon the age of you and your spouse, if applicable, at the time of contribution.

Gift of Personal Property
The gift of tangible personal property to any one of the Masonic charities is also possible. By giving such items to a Masonic charity during your lifetime or at death, you may realize certain benefits and provide a way to assist a charity in a time of need. Gifts of tangible personal property that are related to the purpose of the Masonic charity receiving such property generally produce a deduction equal to the fair market value of the property. Gifts that do not have a related purpose may generate a lower tax deduction, but can be attractive for contribution.

Gift of Life Insurance
Donating a life insurance policy (either paid up or one on which the donor is still paying premiums) that the donor no longer requires for its original purpose is a generous and convenient way to make a gift to a Masonic charity. The donor's income tax deduction is roughly equal to the cash surrender value of the policy.

In addition, some donors prefer to donate annually an amount equal to the premiums for life insurance. The designated Masonic Charity then takes out a new policy on the donor's life, naming the Masonic Charity as the beneficiary. Income tax benefits can result from this gift which may provide for a larger gift than might otherwise be possible.

If a donor wishes to use life insurance to fund a life income plan-either now or in the future-one option is to invest the cash value of the life insurance policy in a charitable gift annuity.

For further information or a personal consultation on the Tangible Personal Property Policy and how you can make a gift of tangible personal property to any one of the Masonic Charities, please contact the Office of Gift Planning.