These tax-wise giving opportunities are several meaningful ways to contribute to the patriotic works of the Sons of the American Revolution and the SAR Center for Advancing America’s Heritage while realizing sizeable tax benefits and cost savings for you and your estate.
Gifts of Cash
The simplest way to give.
There is no easier way to make a charitable tax deduction – and support the Sons of the American Revolution at the same time – than by simply writing a check!
If you itemize, your outright gift of cash is fully deductible for federal income purposes up to 50% of your adjusted gross income. If your total gift exceeds this limitation, the excess may be carried forward for tax purposes for up to five additional years.
Take your time to give substantially.
Many members pledge to make payments over a period of five years, thereby making it easier to make a substantial gift. In addition to your tax deduction, gifts over a certain amount may provide naming opportunities for pledges fulfilled. Consult the SAR Foundation for a naming opportunity availability.
CAAH Pledge Form
Gifts of Stock
Avoid capital gains
Giving long- term appreciated stock offers you a two-fold tax savings. First, you avoid paying any capital gains tax on the increase in value of your stock. Secondly, you receive a tax deduction for the full fair market value of the stock on the date of the gift. For tax purposes, the value of such gifts may be deducted up to 30% of adjusted gross income, with an additional five-year carry forward.
Example: If you purchased stock many years ago for $1,000, and it is now worth $10,000, an out-right gift of that stock to the SAR Foundation would result in a charitable donation of $10,000. In addition, you permanently avoid paying capital gains tax on the $9,000 of appreciation.
Gifts of Life Insurance
A good policy for giving
If you own a life insurance policy that is no longer needed, consider it as the perfect charitable gift.
To receive a charitable deduction, name the SAR Foundation as both the owner and beneficiary of the policy. If the policy has a cash value, you can take a charitable deduction equal approximately to the cash value at the time of the gift. In addition, if annual premiums are still to be made and you continue to make them, those premiums will become tax deductible each year.
It’s easy to donate life insurance policy to the SAR Foundation. Simply check with your life insurance agent for details.
Life Income Gifts
Charitable trust or gift annuity
If you are considering a major gift, you gift of cash or stock in the form of a life income gift can significantly increase your income!
A life income gift allows you to transfer assets now, and yet continue to receive income from the cash or stock or other property donated. A life income gift allows you to 1) increase your income, 2) receive a generous charitable contribution deduction, and 3) if you contribute stock, avoid any capital gains tax on the appreciation!
If you have already considered a provision for SAR in your will, please note that a life income gift can often be preferable. Such a gift allows you to accomplish your goals during your lifetime – and in a tax-advantaged way.
Gifts of Real Estate
Homes, farms, acreage
If you have owned your home, vacation home, farm or acreage for many years, a charitable gift of that real estate can be especially tax-advantageous.
The property may have appreciated in value over the years that its sale would result in a sizeable capital gains tax. However, if you donate such property to the SAR Foundation, you avoid the tax and, at the same time, realize a charitable deduction for the full market value of the real estate.
You may also want to consider a gift of your personal residence or farm, reserving the right to continue to live in the house or farm the property for your life and, if applicable, the life of your surviving spouse. Through such an arrangement, you will be entitled to a current income tax deduction for a portion of the fair market value of the property.
Gifts of Collectibles
If you have owned collectibles, such as art, antiques, coin or stamp collections, classic cars, sports memorabilia, etc. for many years, a charitable gift of that appreciated property can be especially tax-advantageous.
Generally, property is capital gain property if its sale at fair market value on the date of donation would have resulted in long-term capital gain. Capital gain property includes capital assets held more than one year. The general rule is that you can usually deduct the full fair market value as of the date of the charitable donation.
Last Will and Testament
Spare your estate inheritance taxes while helping SAR.
Even if your estate will not be subject to Federal Estate Tax, it may be subject to your state’s inheritance tax. By leaving a bequest in your will to the Center for Advancing America’s Heritage through the SAR Foundation Inc. you may receive a deduction from the applicable inheritance tax plus your estate will be allowed the same deduction from your final income tax return for the year of your death. What better way to show that you are a loyal SAR member? You don’t have to incur the expense of completely redrafting your will. Your bequest could be handled in a simple Codicil to your will. Many SAR lawyers in your state can help draft a Codicil for you free of charge or for a nominal fee.