PLAN TO GIVE--THROUGH PLANNED GIVING!
We have a variety of giving methods tailored to your unique situation. At Detroit Area Agency on Aging, we feel every donor is special and therefore, we offer special giving methods to meet your giving desires. Each individual, family, or organization we work with has unique charitable interests…and unique financial circumstances. We help you make the most of both to do lasting good work in the community.
WHAT ARE PLANNED GIFTS?
Planned gifts are gifts through your will, chartiable trusts, gift annuity, gift of life insurance, gift of real estate, gifts of vehicles, gifts of art, gifts of retirement plans, gifts of stock, a planned gift can also be a one time outright gift.
Outright Gift
You can make a gift of cash, stocks, bonds, real estate, or personal property to DAAA. Your gift qualifies for maximum charitable benefit under state and federal law.
Bequest
You can designate a gift or portion of your estate and in some cases receive a substantial reduction in federal gift and estate taxes.
Gift Annuity
You can make a gift of cash or property and receive immediate tax benefits, and ensure that you or a loved one receive fixed quarterly or annual income payments for life.
Charitable Remainder Trust
You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After your death (and/or the death of your named beneficiary) , the remainder of the trust transfers to DAAA, and is placed in a charitable fund you select. Your tax benefit is received the year you establish your trust.
Charitable Lead Trust
You can place cash or property in a trust that pays a fixed amount for the number of years you select. Once this periods ends, the assets held by the trust are transferred to the beneficiaries you name. In some cases, you receive a substantial reduction in federal gift and estate taxes.
Want to see your high-performing stock perform even better?
Turn it into a gift of appreciated stock!
Put your gains to good use. Your stock can perform great works in the community. Make a general donation, or set up a charitable fund in your name (or your family’s name). You can even stay involved in suggesting programs you’d like to help with your gift dollars.
Receive big tax benefits. You can benefit from a tax reduction on the full market value of your stock. Plus, you can avoid the capital gains tax that would otherwise arise from the sale of this stock. Everyone wins when you give appreciated stock...
Gifts of Appreciated Stock
Turning stock market gains into community good.
Everybody wins when you make a gift of appreciated stock to DAAA.
It’s easy and rewarding to do:
•You make a gift of appreciated stock to DAAA
•Your gift can be placed in any of our charitable funds. For example, you can use your gift to create a Donor Advised Fund in your name or your family’s name. You can then stay involved in recommending uses of your fund… so you can direct your gift to the charitable causes you care about most
•Your gift qualifies for a tax deduction based on a full market value of your stock; plus, you avoid the capital gains tax that would otherwise arise from the sale of this stock
•With gifts of appreciated stock, your stock market earnings translate into community good, so you get a more rewarding return on the fastest growing stocks in your portfolio
Who donates gifts of appreciated stock?
Giving appreciated stock through DAAA is a popular vehicle that appeals to a range of givers---individual investors, families, entrepreneurs, and even groups of friends who’ve formed investment clubs.
It’s a simple, smart way to turn your stock market gains into community good.
PUTTING STOCK IN YOUR COMMUNITY
“A booming stock market provided the means for giving more back to our community,” according to Kathy and Jeff Reed. So they joined the ranks of donors who choose to contribute appreciated stock to open a Donor Advised Fund. Last year, the Reed’s helped fund several local programs. The Reed’s received a tax deduction on the full market value of their appreciated stock, while avoiding the capital gains tax that would otherwise arise from the sale of this stock. “It’s a good, smart way to give.”
Detroit Area Agency on Aging
The Senior Solution
1333 Brewery Park Blvd.
Detroit, MI 48207
(313) 446-4444
Gifts of Appreciated Stock
Why donate gifts of appreciated stock?
You can use your stock to establish a charitable
fund that benefits the programs you care about most.
We’ll help you fulfill your personal charitable goals.
And we can do it through a fund established in your
name, in the name of your family or business, or in
honor of any person or organization you choose.
Plus, you can receive special tax advantages—
including a tax deduction on the full market value of
your gift, and the ability to avoid the capital gains tax
you’d normally pay when selling appreciated stock.
Putting stock in charity is a good thing for everybody.
EXAMPLES FOR GIVING
Increase income for life and leave a gift to the community, by preserving a charitable intent forever through DAAA.
MARGARET KLEIN IS A WIDOW WITH NO LIVING CHILDREN. She is a caring person who enjoys volunteering and giving to worthy charities because it makes her life more meaningful. Margaret has been a lifelong member of her community and a volunteer at the local performing arts center and historical society.
Her lifestyle is modest – supported by social security benefits, interest and dividend income. She has a savings account set aside for emergencies and an investment portfolio. Margaret’s investment portfolio is made up of blue-chip stocks that are currently worth $500,000. She purchased them for $200,000 years ago with the proceeds from her husband’s life insurance. The stocks currently pay annual dividends of $10,000 (two percent of market value).
Margaret would like to increase her spendable income but is worried about “dipping” into the principal of her portfolio. She is also concerned about capital gains tax if she sells her appreciated assets. Her friend, a retired CPA, suggested she meet with a representative from DAAA to discuss a life income gift.
After thoughtful consideration, Margaret can establish a Gift Annuity through DAAA by making a gift of her appreciated stocks. The annuity contract guarantees her a fixed income of $40,000 per year for the rest of her life, which is a substantial increase over the $10,000 in dividend income she currently receives.
Knowing DAAA practices prudent stewardship and carefully manages gift dollars, Margaret is confident her investment will be used for its inteded purpose. She is also pleased that her gift can become a permanent charitable endowment that provides ongoing support for her community after she is gone.
DAAA offers a range of giving tools that help donors achieve their charitable goals, Donors can give cash, vehicles, real estate, appreciated stocks, or other assets and receive maximum charitable and tax benefits.
For more information or ideas on ways to integrate financial planning with charitable giving, contact:
Andrea Johnson
Telephone: (313) 446-4444
Fax: (313) 446-4445
Email: johnsonand@daaa1a.org
LEAVING A PERSONAL LEGACY
The Shirley and Dan Berry Fund can be set up at the DAAA in the names of Shirley and her deceased husband. The value of the fund increases with investment income and is reduced by her annuity payments. Upon Shirley’s death, DAAA can begin to distribute income from her endowment gift. Shirley may wish to direct her gift to support the chronically ill elderly in her community. The DAAA can use the Shirley and Dan Berry Fund to make grants to the most appropriate, high-impact programs preserving her charitable intent forever. Plus, each grant can always be awarded using the name of Shirley and Dan’s fund.
Minimizing Taxes
For Shirley, the Gift Annuity option is an ideal vehicle for increasing spendable income while minimizing capital gains and income taxes. A federal income tax deduction is available for the net value of the contribution (based on the amount given, the age of the annuitant, and the annuity paid).
Personal and Charitable Benefits
Before talking to the DAAA, Shirley believed she could not make a substantial charitable gift because of her financial situation and uncertainty about her future needs and resources. Through a Gift Annuity, her highly appreciated assets are converted into a fixed stream of payments producing a higher, guaranteed cash flow. This can result in a greater lifetime income stream for Shirley and, ultimately, a greater benefit to the community through Shirley’s charitable interests.
The Benefits
By establishing a Field of Interest Fund for the chronic ill elderly in her community, Shirley’s desire to support her community will be preserved forever.
These examples represent a composite illustration drawn from the actual stories of many of the thousands of people who give. Certainly, names have been changed. The DAAA provides the flexibility to help donors meet a broad range of needs through a variety of vehicles. We welcome the opportunity to work with you to fulfill your charitable objectives and community interests.
EXAMPLES FOR GIVING
Giving back and staying involved
Meeting a variety of charitable interests
ROBERT GREEN, AGE 55, IS A SUCCESSFUL BUSINESS EXECUTIVE who worked his way up the corporate ladder. For Robert and his wife, Jennifer, finding ways to help others in their community has always been a way of life. For the last several years, they have volunteered under the Detroit Meals on Wheels program.
During the past year, Robert’s company enjoyed record success, and he expects to receive a significant bonus in late December. As Robert and Jennifer began their year-end tax planning discussions, their accountant suggested that they consider increasing their charitable contributions this year. He knows that “giving back” is an important piece of the Greens’ lives, and it will help reduce taxes in this year of high income.
Robert and Jennifer agreed with the advice, but expressed concern about not having much time to consider which organizations in the community will benefit most from their gift. They also had misgivings about donating a large sum of money to one charity. “If we give it this year, they may expect as much or more in years to come.”
The Greens’ accountant encouraged them to consider using DAAA as a flexible vehicle. With the variety of programs funded through DAAA this will allow them to fulfill their varied charitable interests.
DAAA offers a range of giving tools that help donors achieve their charitable goals. Donors can give cash, vehicles, real estate, appreciated stocks, or other assets and receive maximum charitable and tax benefits. For more information or ideas on ways to integrate financial planning with charitable giving contact:
Andrea Johnson to explore your donor options by:
Telephone: (313) 446-4444
Fax: (313) 446-4445
Email: johnsonand@daaa1a.org
The Benefits
A Donor Advised Fund provides the Greens an immediate tax benefit, and allows them to stay involved in suggesting grant awards that are made possible by their fund.
Personalized giving
After meeting with DAAA’s professional staff to discuss giving choices, the Green’s elected to establish a Donor Advised Fund in the name of their family. This will allow them to stay actively involved in suggesting uses for the gift for years to come, while gaining an immediate tax deduction in the year their gift is made.
The Greens can recommend distributions from their fund to their favorite programs. They can even involve their son and daughter in the distribution process as a meaningful way of sharing their community values with their children.
Tax benefits
Because the DAAA is a public charity, it offers the Greens the highest level of tax benefits for charitable giving. The Greens can match high-income years with high charitable tax deductions that generate long-term community benefits.
In addition, the Greens can add to their Donor Advised Fund any time they wish, and integrate future contributions within their overall financial and estate planning framework.
TEN REASONS PEOPLE CHOOSE TO GIVE TO DAAA
1.We build endowment funds that benefit the community forever (by investing principal, then using investment income to make charitable grants).
2.We help donors establish a personal legacy by creating permanent funds in their names.
3.We offer ways for donors to stay involved in identifying uses for their charitable gifts.
4.We are local, meeting a broad range of ever-changing local needs.
5.We are a simple way to fulfill multiple charitable interests.
6.We provide personalized donor service to support each donor’s unique charitable interests and financial circumstances.
7.We accept a wide variety of assets; donors can make gifts of cash, appreciated stocks, bonds, real estate, or personal property.
8.We offer maximum tax advantage under state and federal law.
9.We help preserve donor intent.
10. We practice prudent stewardship and carefully manage each fund.
Tools for Giving: A Donor Advised Fund
Charitable Family Fund
The simple, rewarding alternative to a family foundation.
Opening a Charitable Family Fund allows you and your family to make a gift to DAAA, and then remain actively involved in suggesting uses for this gift.
Here’s how it works:
Your family makes a gift to DAAA—you can give cash, appreciated stocks, real estate or other assets
•We set up a special fund in your family’s name
•Your family receives tax benefits the year your gift is made
•Your family’s gift can be placed in a fund that is carefully invested and can grow over time; a portion of your fund is used to address community needs every year
•We handle all the administrative details—and issue grant awards in the name of your family’s fund
Why create a Charitable Family Fund?
It provides a simple and flexible tool for families. Families with a range of community interests find that it’s an ideal vehicle for fulfilling their charitable wishes. In these cases, Charitable Family Funds are typically less costly and easier to administer than other forms of philanthropic giving (such as private foundations).
A PERSONAL APPROACH TO GIVING
“We wanted to share our community values with our children, and share our family values with our community.” So Bob and Kathy Smith established the Charitable Family Fund.
Charitable Family Fund
Plus, a Charitable Family Fund includes benefits:
•You can establish a charitable legacy in the name of your family
•Your gift can generate the long-term advantages of endowment funding—principal from your gift is invested, not spent; investment income is used to fund programs
•You know that your gift will be carefully invested and managed – we have years of experience and proven stewardship practices
•You are eligible to receive maximum tax benefit—under both state and federal law
TEN REASONS FAMILIES CHOOSE TO GIVE TO DAAA
1.We build endowment funds that benefit the community forever (by investing principal, then using investment income to fund rprograms)
2.We help donors establish a personal legacy by creating permanent funds in their names.
3.We offer ways for donors to stay involved in identifying uses for their charitable gifts.
4.We are a local organization meeting a broad range of ever changing local needs.
5.We are a simple way to fulfill multiple charitable interests; through a number of programs.
6.We provide personalized donor service to support each donor’s unique charitable interests and financial circumstances.
7.We accept a wide variety of assets; donors can make gifts for cash, appreciated stocks, bonds, real estate, or personal property.
8.We offer maximum tax advantage under state and federal law.
9.We help preserve donor intent.
10.We practice prudent stewardship and carefully manage each fund.