Planned Giving
Donate by Mail | Planned Giving | Gifts of Stock
Gifts of Real Estate | Gifts-in-kind
Donating Now
Individual gifts provide the backbone of support for The San Diego Council on Literacy
How to donate now
Making a gift to The San Diego Council on Literacy online is easy. Just visit our online donation page, Donate Now.
Is my transaction secure?
Yes. We are committed to protecting your privacy. All information submitted via this website is done so utilizing secure server software (SSL) This software is the industry standard and among the best software available today for secure transactions. To further ensure that your billing information is kept in the strictest of confidence The San Diego Council on Literacy provides an on-line form where you enter only your contact information and the amount which you would like to donate. A member of The Council's staff will contact you to take your billing information over the phone.
Will I receive a tax receipt letter?
Yes. After we process your transaction, we will mail you an official tax receipt letter for your records.
Donate by Mail
Can I make a donation by mail?
Yes. Print, complete, and mail a convenient gift form with your check or credit card information. You can send a gift through the mail by printing out the Donation Form (Microsoft Word format).
Planned Giving
The San Diego Council on Literacy needs long-term financial support from everybody in our community. We are a 501c(3) non-profit organization whose purpose is to increase the literacy rates of both adults and children throughout San Diego County.
Why should I have an estate plan?
Your estate is any property, money, investments, or personal belongings that you own. An estate plan can be a simple will or living trust, which shows specifically how you wish your possessions to be distributed after you die. Without a will or trust, state law decides how your property will be distributed. A brief bequest can easily describe how much and to whom you wish donations to go.
How should I include the specific organizations I wish to benefit in my estate plan or will?
To be certain that charities you wish to help are included, list each by name and address with the specific amount or percentage of your estate you want each to receive.
Are there different ways to leave a gift to the charity I admire?
You can arrange for a gift several ways, most commonly through a paragraph in your will or living trust. It is also possible to bequeath a car, boat, jewelry, stocks or bonds, assets, your home or other real estate, any of which may also lower the estate taxes which might be levied.
You may also donate securities or real estate now to a charitable trust and receive income for your lifetime (and another person's), avoid all capital gains tax if the asset donated is appreciated, gain an immediate tax deduction and benefit the charity when you pass on.
Who can help me arrange a bequest or life income gift?
The Council recommends if you have a professional financial advisor, lawyer, accountant or other trusted advisor, you talk to them about your gifts.
How do I leave a gift in memory of a certain person or for a specific purpose?
A gift bequest is a wonderful way to memorialize a loved one or recognize someone who has made a difference in your life. Through your will or a trust, you can arrange the gift just as you would while living. Talk to the staff at The San Diego Council on Literacy.
They can help you ensure the gift will be used exactly as you want.
Ten things you can do now to leave a legacy
1. Make a will! Almost half the people in the U.S. die without one thus missing one of the best and easiest ways to Leave A Legacy. If you die with no will, state law determines how your assets are distributed and your favorite charity will receive nothing from you.
2. Having written your will (with appropriate legal advice) be sure to include a paragraph which describes each bequest (a specific gift) to a family member or friend or to The San Diego Council on Literacy.
3. As an addition to having a will, you may set up a living trust (with a lawyer's help and advice) in which you can list specific gifts from your estate to The San Diego Council on Literacy.
4. Your estate consists of all your property and possessions at the time of your death.
You may leave any possession to The San Diego Council on Literacy such as securities, jewelry, art, a vehicle, boat, home or real estate.
5. You can donate an existing (or a new) life insurance policy by making The San Diego Council on Literacy the policy's owner or beneficiary.
6. You can leave a legacy by establishing a permanent endowment fund with The San Diego Council on Literacy. Its future income will go to meet a specific need or provide for the programs you have designated in advance.
7. You can donate funds now to pay for a major capital need to serve The San Diego Council on Literacy far into the future.
8. You can establish a "planned gift" with The San Diego Council on Literacy which gives you (and another person if you wish) lifetime income, an immediate tax deduction and the gift will benefit The San Diego Council on Literacy when you (both) die.
9. You may name The San Diego Council on Literacy as beneficiary of your IRA or other pension account and receive a number of favorable tax benefits.
10. You can leave a legacy by encouraging family and friends to make their own wills and include bequests to The San Diego Council on Literacy.
Gifts of Stock
One of the most tax-wise methods of providing current support to The San Diego Council on Literacy is through a gift of long-term appreciated securities.
Gifts of appreciated securities are an excellent way to provide for The Council and the thousands of individuals (children, adults and families) countywide who will all benefit from your charitable contribution. Such gifts can also be used to create planned gifts, which provide you (and your spouse) with an income for life.
Giving the gift of stock
As you consider tax-wise ways of giving to The San Diego Council on Literacy, you may want to analyze the benefits of giving appreciated securities. Long-term appreciated stock (those held longer than 12 months) are particularly beneficial to give because you receive a charitable deduction for the full fair market value of the gift and, in addition, you avoid paying capital gains tax on the appreciation. A charitable income tax deduction is allowed for up to 30% of your adjusted gross income in the year of the gift. Any unused portion can be carried forward for up to an additional five years.
Here is how such a gift works:
Mr. and Mrs. Literacy, who are in the 31% income tax bracket, would like to make a charitable gift to The San Diego Council on Literacy. They are interested in giving some of their stock, which has appreciated greatly over the years. They select stocks with a current value of $2,500, purchased several years ago for $500. By contributing the securities to The San Diego Council on Literacy, they realize a $2,500 charitable deduction, which saves them $775 in income taxes (31% of $2,500). In addition, Mr. and Mrs. Literacy avoid the potential capital gains tax of $400 on the $2,000 appreciation (20% of $2,000). Mr. and Mrs. Literacy's actual cost of the $2,500 gift of stock is only $1,325 (or $2,500 less $775 less $400). In other words, the cost of their gift is only 53% of the face value of the gift. In addition, their taxes may be further reduced because of state income tax deductions.
Easy steps for transferring securities
The rules for transferring securities, while not complicated, are strict. You will want to exercise care to assure that your stock transaction is completed correctly. The same rules apply to giving shares of a mutual fund. Remember, the amount of your deduction depends on the value of the securities on the date the gift is completed. This date may be important for your tax planning, particularly at year-end. If the Securities are held by a Bank, Broker or Mutual Fund Company you should write your bank, broker or mutual fund company a letter which contains the following statement:
You are requested and authorized to make a gift of (number) shares of (name of stock or mutual fund) to The San Diego Council on Literacy (federal tax identification number33-0390376) effective today (date), to benefit the programs of The San Diego Council on Literacy Please transfer these shares to The San Diego Council on Literacy at the Depository Transfer Company ("DTC") to their ____________ account.
The San Diego Council on Literacy, upon receipt of your letter, will promptly contact your bank, broker or mutual fund company to arrange disposition of the stock or mutual fund.
Note:
The gift is complete for tax purposes when the securities are transferred into The San Diego Council on Literacy brokerage account. It does not matter whether the securities are registered in your name, "street name," or certificate form. Your broker and The San Diego Council on Literacy staff will handle the details.
Enclose the Security Transfer Instructions.
Send a copy of your letter to:
The San Diego Council on Literacy
2515 Camino Del Rio South Suite 111
San Diego, California 92108
If the securities are in certificate form in your possession
1. Send your certificate without any endorsement to:
The San Diego Council on Literacy
2515 Camino Del Rio South Suite 111
San Diego, California 92108
along with a letter indicating how you would like your gift to benefit The San Diego Council on Literacy
2. In a separate envelope, send a blank, but signed, stock power and ownership disclaimer form with a copy of the letter that was mailed with your certificate to The San Diego Council on Literacy certificate is negotiable only when joined with the stock power.
Additional information
Regular first-class mail provides for sufficient protection. However, you may send these items by certified mail if you wish. Stock powers and ownership disclaimer forms may be obtained at any bank or broker's office. The gift becomes effective on the date you mail the certificate and the stock power/ownership disclaimer in the U.S. mail. You may hand deliver the certificate to The San Diego Council on Literacy, where you can sign a stock power form and an ownership disclaimer form.
Establishing the gift's value
The gift value of the securities is the average of their high and low prices on the date of the gift. For mutual fund shares, the net asset value (NAV), at the close of business on the date of the gift, is used to establish the value of the gift.
Things you need to know
Pursuant to Internal Revenue Service regulations, the effective date of the gift for valuation and charitable deduction purposes is the date the securities are transferred into The Council's brokerage account. If the transfer needs to be made by a specific date, please allow sufficient time for DTC transfer to take place.
If the certificates are in your name, it is not recommended to have them re-registered in The San Diego Council Literacy's name, as this may take four to eight weeks to achieve.
Please inform broker and The San Diego Council on Literacy before initiating a DTC transfer. Include information concerning security description, shares and transfer initiation date.
Gifts of real estate
Donating a residence, vacation home, land, or farm that has appreciated in value can avoid capital gains tax and result in a charitable deduction for the full fair market value of the property.
Real estate gifts to The San Diego Council on Literacy
Gifts of real estate can be structured in many different ways - from outright gifts and charitable remainder trusts to retained life estates.
Outright gift
A gift of real estate is a tax-wise method of providing support for The San Diego Council because of the two-fold tax savings. A residence, summer home, farm, commercial property, or vacant land may have appreciated in value to the extent that its sale would result in a sizable tax on the gain. If given outright to The San Diego Council on Literacy you can avoid this tax and realize a charitable deduction for the full fair market value.
The property gift can also shelter your estate from future taxes.
Example of Outright Gift
Mr. and Mrs. Literacy, who are in the 31% income tax bracket, would like to make a charitable gift to The San Diego Council on Literacy. They have owned a rental home - now worth $250,000 - since purchasing it ten years ago for $100,000. By donating this property to The San Diego Council on Literacy, The Council will receive a $50,000 charitable deduction, which saves them $77,500 in income taxes (31%). In addition, the Literacy's avoid the potential capital gains tax of $30,000 on the $150,000 appreciation (20%).
Retained life estate
An owner of a personal residence or farm may give the property to The San Diego Council on Literacy while retaining the right to occupy the home or operate the agricultural land. This gift vehicle provides an income tax deduction for the present value of the remainder interest.
Example of Retained Life Estate
Rachel Read has lived on the family farm for 40 years. Her will includes a provision that The San Diego Council on Literacy will receive the farm at her death. This arrangement does not provide any current tax deduction for her. As an alternative, Mrs. Read decides to give the farm to The San Diego Council on Literacy now, while retaining the right to live on the property for life. Given the farm's current value of $500,000, she will be entitled to a current income tax charitable deduction of over $240,000, which is the value of The San Diego Council on Literacy's remainder interest. By creating the retained life estate, Mrs. Read accelerates her gift and enjoys a large tax bonus without changing her lifestyle.
Charitable remainder trust
A charitable remainder trust is a life income arrangement that enables you to convert appreciated real estate into an income stream through an irrevocable gift of the property.
Once in the trust, the property can be sold tax-free and reinvested into a diversified portfolio. As a result, the full fair market value of the donated property is available to provide income during your lifetime, while also generating an income tax deduction equal to the present value of your future gift.
Example of Charitable Remainder Trust
Lucy Literate, age 67, owns undeveloped land that has increased tremendously in value. The land generates no income and is a cash-flow drain because of real estate taxes. Lucy faces capital gain taxes if she sells the property to reinvest for income, or eventual estate taxes if she keeps the property. After working with The San Diego Council on Literacy and her own attorney, Lucy uses the land to establish a charitable remainder trust. The trust will pay Lucy a 6% income for life and then distribute its assets to The San Diego Council on Literacy after her death. The trust provides a current tax deduction, avoids capital gain taxes, and removes the land from Lucy's estate.
Gifts-in-kind
From donations of artwork to corporate contributions of equipment and materials, gifts-in-kind ensure that educational efforts at The San Diego Council on Literacy remains state-of-the-art. Gifts-in-kind are gifts of real property such as land, or tangible personal property such as equipment, materials, company products, or inventory.
Gifts of equipment and material
The San Diego Council on Literacy encourages and appreciates gifts-in-kind, such as computer hardware and software, industry equipment and other materials that The Council would otherwise need to purchase. Through gifts-in-kind, supporters help The Council strengthen programs and improve facilities to provide the best possible educational experience to children, adults and families. Unlike contributions of cash or securities, in-kind gifts allow donors to receive the benefit of a charitable contribution without drawing on their cash reserves.
Acceptance policy
All gifts-in-kind are reviewed, accepted, and officially acknowledged. Prior to acceptance, the gift is reviewed to see if it meets specific needs. The San Diego Council on Literacy reserves the right to decline any gift that does not further The Council's goals or involves special maintenance or other conditions The Council would be unable to satisfy. The donor is responsible for making arrangements to deliver the gift.
Appraisal guidelines
In accordance with Internal Revenue Service regulations, the donor is responsible for determining the value of an accepted gift. Before presenting a gift of tangible property to The San Diego Council on Literacy, donors should first establish the fair market value of the gift with a recognized independent appraiser. A qualified appraisal dated no more than 60 days prior to the date of contribution is required by the IRS to substantiate a donor's charitable deduction for gifts-in-kind. The San Diego Council on Literacy personnel are not qualified appraisers, and federal regulations do not permit The Council to give appraisals or estimates of value.
Tax deduction issues
Generally, the fair market value of a gift-in-kind is deductible.
A donation within a tax year valued at $250 or more requires a written acknowledgment from the recipient. Accordingly, The San Diego Council on Literacy will mail you the required receipt.
If the value of a gift is $500 or more, the Internal Revenue Service requires donors to file IRS Form 8283 and comply with its regulations pertaining to non-cash charitable contributions. If the donation is valued at more than $5,000, the donor must obtain a qualified appraisal and submit an appraisal summary with the return claiming the deduction. A copy of the appraisal must also be given to The San Diego Council on Literacy. For tax purposes, the date of the gift is the date of physical delivery. For companies that contribute products, the deduction is limited to the actual cost of producing the item when the donor is the creator of a contributed tangible asset.
The Council's use of a gift may affect the amount of an allowable deduction. If the use is unrelated to The Council's tax-exempt purpose or function, the donor must reduce the contribution deduction by the amount of long-term capital gain he or she would have realized from sale of the property. Special rules apply to gifts of inventory, works of art, gifts of assets with short-term capital gain, and some other hard-to-value assets. The summary above is based on Internal Revenue Service publications and provides basic guidelines regarding tax deductions for gifts-in-kind. This summary is not intended to serve as a complete account of the requirements or limitations covering tax-deductible gifts. The San Diego Council on Literacy recommends that donors consult their tax advisors when considering gifts-in-kind.