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Kulshan Community Land Trust is an excellent charitable investment, one that provides a permanent legacy and testament to each donor's generosity. Philanthropy offers some of the most satisfying pleasures in life, because it calls forth and gives expression to the best in us.
Because KulshanCLT is established as a federally tax-exempt charity under Section 501(c )(3) of the IRS tax code, gifts, donations and bequests entitle the donor and, sometimes, the donor's designees, to income tax deductions and other significant tax advantages. Below are just a few of the many optional forms of giving to KulshanCLT.
If you have any questions regarding the following options, please talk to your accountant or attorney or contact our office to see which would be the best way for you to support KulshanCLT's mission of creating and preserving permanently affordable housing in Whatcom County.
Philanthropic Options
Individual Gifts
Charitable donations by individuals and families are tax-deductible gifts of any asset - cash, stock, real estate, life insurance, artwork or any other property of value - given to any qualified charitable organization.
GIFTS OF SECURITIES can be the most economical, productive, and satisfying way for high net-worth donors to support a favorite cause. The IRS allows donors to deduct up to half their adjusted gross income (AGI) in a given year. It also stipulates that up to 30 percent of one's AGI may be charitably deducted in the form of transfers of appreciated stock, in which the donor is allowed to deduct the full appreciated value of the security without having to pay the capital gains tax - in effect, a double tax benefit from one transaction. The cost of the gift to the donor is the original purchase price of the stock, minus the capital gains tax, and minus the amount saved in income taxes from that itemization. The value of the gift to the charity, on the other hand, is the full appreciated value of the stock - often a major gift for that charity.
Planned Giving
Giving money away is easy, but investing it for charitable purposes, like other investments, requires more care and skill, and for that reason yields greater rewards. Even small gifts, strategically placed, can make tremendous differences in a community's quality of life.
CHARITABLE BEQUESTS are gifts to KulshanCLT via a will or trust. This is a marvelous way to give to a favorite cause and to reduce overall estate taxes. Remarkably, fewer than 1 in 5 estates of over $1 million take advantage of this.
CHARITABLE GIFT ANNUITIES provide a prudent and practical way to support KulshanCLT. They allow donors to receive a fixed income for life, which is guaranteed never to decrease. In addition, for a period of years, a portion of the annuity's income will be tax-free. Funding gift annuities with an appreciated asset such as stock may result in capital gains tax savings and favorable treatment of any capital gains tax that may be due.
CHARITABLE REMAINDER TRUSTS allow a donor to transfer money, securities, or both to an individually managed trust, which pays the donor an income for life. Donors are entitled to a sizable income tax deduction in the year of the gift. In addition, the appreciated portion of the gift escapes capital gains tax.
CHARITABLE LEAD TRUSTS pay income to KulshanCLT for a specific period of time. At the termination of the trust, all gift assets are returned to the donor or other person(s) designated in the trust, such as children or grandchildren. The income received by KulshanCLT can be used to establish an endowment fund in the name of the donor. Whereas charitable remainder trusts generate significant income and estate tax deductions, lead trusts are used primarily to reduce estate tax liabilities on gifts to family members.
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