Guides To Giving

Many of our friends are not aware of the many ways to give.  Depending upon your specific situation, there are ways to structure your gift so that you can save on taxes, receive lifetime income, or both!  And when you make a gift to Tulsa Boys’ Home, you can rest assured of our commitment to use your resources as you direct us.  If you would like more information on creative ways to give, just click on the topics listed.  If you would like a Tulsa Boys’ Home representative to contact you about creative ways to give, please contact Lucy Willis at 245-0231 Ext. 5055 or email her at lwillis@tbhinc.org.

Cash Gifts

Stocks and Mutual Funds

Real Estate

Life Insurance

Retirement Plans

Gifts that Pay You Income

Charitable Lead Trusts

Gifts Through Wills and Trusts

Testimonials

Cash Gifts

Cash is one of the simplest and most popular ways to make a charitable gift.  A gift of cash may be deductible up to 50% of your adjusted gross income.  The excess may be carried over as deductions for the next five years.   

A $1,000 Gift Before December 31st
Saves You $ In Taxes	Based Upon Tax Bracket
$100	10%
$150	15%
$300	30%
$386	38.6%

·        Donate On-line

·        Donate by Phone:  918-245-0231 x5027

·        Donate by Mail:  Tulsa Boys’ Home

   PO Box 1101

   Tulsa, OK  74101-1101

Stocks and Mutual Funds

A gift of appreciated stock or mutual funds can be one of the most advantageous ways of giving.  If you have held the stock for more than one year, you can avoid capital gains tax and receive a tax deduction for the fair market value of the stock on the date of the gift.

Case Study with Appreciated Stock

What if my stock is worth less than I paid for it?

Gifting Stock Held in a Brokerage Account (e.g. Fidelity, Edward Jones)

 To donate stock held in a brokerage account, please contact Lucy Willis, Donor Relations Manager, at 245-0231 Ext. 5055 or email her at lwillis@tbhinc.org.

Gifting Stock Held in Certificate Form

Stock held in certificate form may be transferred to Tulsa Boys’ Home by completing a Stock Power Form.  This form allows us to transfer the stock from you to us.  Keep in mind that when signing the Stock Power Form your signature must be guaranteed by a medallion signature available at most banks.  Once completed, the stock certificate and the Stock Power Form should then be mailed to Tulsa Boys’ Home in two separate envelopes to the address shown above.  Please include your name, address, and daytime phone number with the certificate so that we may call you if we have questions.

 Case Study with Appreciated Stock

John plans to sell stock worth $1,000 that he bought for $400 and give the money to Tulsa Boys’ Home.  If John sells the stock, he will have to pay capital gains tax on the $600.  Instead, John gives the stock directly to Tulsa Boys’ Home.  As a result, he avoids the capital gains tax and receives a $1,000 tax deduction.

	Sell Stock & Give Proceeds	Gift of Stock
Taxes Paid	$120	$0
Tax Deduction	$880	$1,000
Gift to Tulsa Boys' Home	$880	$1,000

What if my stock is worth less than I paid for it?

Gift of Proceeds for "Loss Stock"

Instead of gifting stocks that are worth less than you paid for them, consider selling the stock at a loss and then gifting the proceeds.  By selling the stock you can take advantage of up to a $3,000 tax deduction for losses on stock investments.  Then by gifting the proceeds you can receive an additional tax deduction.

John plans to give stock worth $4,000 that he bought for $10,000 to Tulsa Boys’ Home.  If John gives the stock, he will only receive an income tax deduction for $4,000.  Instead, John sells the stock and recognizes a $6,000 tax loss (of which he can deduct $3,000 this year on his tax return and $3,000 next year).  He then gives the proceeds from the sale to Tulsa Boys’ Home.  As a result, he receives $10,000 in tax deductions.

	Sell Stock & Give Proceeds	Gift of Stock
Deductible Loss on Sale	$6,000	$0
Income Tax Deduction	$4,000	$4,000
Total Income Tax Deductions	$10,000	$4,000

 Real Estate

If you own real estate that has been fully paid off and appreciated in value, a gift may be a solution to avoiding the capital gains tax.  If you have held the property for more than one year, you can avoid capital gains tax and receive a tax deduction for the market value of the property on the date of the gift.

 Life Insurance

As you review your financial situation, remember that a life insurance policy is a unique way to give.  To qualify for a tax deduction, Tulsa Boys’ Home must be named owner and beneficiary.  If your policy is paid up, your deduction will equal the policy's replacement value.  If your policy requires on-going premiums, you will receive a deduction for the premiums you pay.

Case Study with Gifts of Life Insurance

John has a life insurance policy in which he no longer needs that he would like to give to Tulsa Boys’ Home.  To make the gift, John requests a change of ownership and change of beneficiary form from the life insurance company.  Because he names Tulsa Boys’ Home owner and beneficiary he receives a tax deduction for the value of the policy.  And any future premium John pays entitles him to additional tax deductions.

Retirement Plans

Retirement plans are different than other assets.  At death, retirement plans are exposed to not only estate tax, but also income tax.  After you pass away, your IRA will transfer to your beneficiary.  If the beneficiary is your spouse, you can transfer the IRA to your spouse with no tax consequences.

However, if the beneficiary is not your spouse, the beneficiary must pay income tax on the entire IRA distribution.  This type of tax is known as "Income in Respect of a Decedent."  IRAs, 401(k)s, deferred compensation plans, and other qualified plans are subject to this tax.  Unfortunately, depending upon the size of your retirement plan, this tax (along with estate taxes) could reduce the amount passing to your beneficiary by up to 80%.

Lifetime Gifts of IRAs

Generally, charitable gifts from IRA monies make poor gifts during your lifetime.  By withdrawing money from your IRA, you must still pay the tax on the withdrawal.  And although you will receive an income tax deduction for the gift, it will not be enough to fully cover the tax.

Charitable Gifts of IRAs

Although lifetime gifts from IRAs are not recommended, gifts of IRAs to charitable organizations at death can be beneficial.  If you plan on making gifts to charity in your estate plan, consider making them from your IRA instead of other assets.  Your beneficiaries must pay tax on the IRA, but a "tax-exempt" charitable organization does not.  By making your favorite charity a beneficiary of the IRA, you save your heirs tax dollars and support your charity.

Charitable Remainder Trusts

Another solution to the IRA income tax problem is to use the IRA balance at your death (or your spouse's death) to fund a Charitable Remainder Trust.  A Charitable Remainder Trust is a tax-exempt trust that does not pay income tax, but does pay your beneficiaries income for a term of years.  After the term of years, the remaining balance of the trust is paid to your favorite charitable organization.

Gifts that Pay You Income

Perhaps you would like to give more during your lifetime, but cannot because of your present need.  By considering gifts that provide income, you may be able to achieve your charitable goals and still meet your own needs.  Through the use of a Charitable Remainder Trust or a Charitable Gift Annuity, you can receive income for the rest of your life, and receive a current income tax deduction.

Charitable Remainder Trust

Through the use of a charitable remainder trust, you can do something lasting for Tulsa Boys' Home and receive the following economic benefits:

Eliminate Capital Gains Tax

Increase Your Income

Receive an Income Tax Deduction

How Does a Charitable Remainder Trust Work?

Several years ago Janet and Dave (ages 63 and 65) purchased rental real estate for $25,000.  The property is currently worth $100,000.  They now wish to sell the property to increase their income and simplify their lives.  Unfortunately, if they sell they will have to pay $15,000 in capital gains tax (assuming a 20% tax bracket). 

However, if Janet and Dave set up a charitable remainder trust, the trust can sell the property tax free.  Janet and Dave will receive 5% of the value of the trust annually for the rest of their lives (almost $147,628 over their lifetimes), plus a $33,578 income tax deduction.  At their deaths, Janet and Dave will leave a lasting gift of over $128,000 to provide the highest quality residential care for young boys needing placement outside their home, for the purpose of developing well-adjusted, responsible adults and strengthening the family.

How Can a Charitable Remainder Trust Work for You?

A charitable remainder trust can be tailored to meet your needs.  Its flexibility allows you to transfer appreciated assets such as real estate, publicly traded or closely held stock, or even cash.  You can start with any amount, choose from various payout rates, and make provision for one or more charitable beneficiaries.

If you would like more information about charitable remainder trusts, please call our Donor Relations Manager, Lucy Willis, at 245-0231 Ext. 5055 or by email at lwillis@tbhinc.org.

Charitable Gift Annuity

A charitable gift annuity is an agreement between you and Tulsa Boys’ Home.  You agree to make a gift of cash, stock, or other marketable property.  In exchange, Tulsa Boys’ Home agrees to pay you income payments for the rest of your life.  At your death, the balance goes to Tulsa Boys Home which is to provide the highest quality residential care for young boys needing placement outside their home, for the purpose of developing well-adjusted, responsible adults and strengthening the family.

What are the Tax Benefits of a Charitable Gift Annuity?

·        Guaranteed payments (partially tax-free) for your life and your spouse

·        Annuity payments at higher rates than interest paid on fixed investments

·        Charitable income tax deduction

·        Capital gains tax saving

·        Opportunity to partner with Tulsa Boys’ Home to provide the highest quality residential care for young boys needing placement outside their home, for the purpose of developing well-adjusted, responsible adults and strengthening the family

How Are Charitable Gift Annuity Rates Established?

The American Council on Gift Annuities establishes gift annuity rates by taking into account your age and the current investment climate.  Below are tables illustrating rates for “one-life” and “two-life” gift annuities.

Annuity Payout Rate for One Life
Age	Rate
50	5.50%
60	6.00%
70	6.70%
80	8.30%

Annuity Payout Rate for Two Lives
Age	Rate
50/50	4.70%
60/60	5.60%
70/70	6.10%
80/80	7.10%

If you would like more information about charitable gift annuities, please call our Donor Relations Manager, Lucy Willis, at 245-0231 Ext. 5055 or by email at lwillis@tbhinc.org 

Charitable Lead Trusts

Did you know that our nation's tax laws multiply gifts back to the giver?  A charitable lead trust provides charity income payments for a term.  When the trust term is over, the trust is distributed to you or your heirs.  Although you temporarily forgo the investment income, you or your heirs ultimately receive the property.

Charitable Lead Trust Payments

You can choose whether to pay the charitable lead beneficiary an annuity payment or an unitrust payment.  An annuity payment is a guaranteed amount each year.  An unitrust payment is a fixed percentage of the fair market value of the trust assets valued annually.  Which type of payment to choose depends upon your specific situation.

Term of the Charitable Lead Trust

The annuity or unitrust payments can be paid for a specific number of years or for the life (or lives) of an individual.

Keeping the Balance for You

A charitable lead trust can be structured to distribute the balance of the trust to you after the trust term ends.  In this situation, you will receive an income tax deduction in the year you set up the charitable lead trust, but you will be taxed on the trust's income each year.  Generally, this type of charitable lead trust works well for individuals needing a large tax deduction in a particular year.

Leaving the Balance to Your Family

You can also structure the charitable lead trust to transfer the balance of the trust to your family after the trust term ends.  As with all gifts to your family, the IRS seeks to impose a transfer tax- gift and estate tax.  However, the gift of the "lead" or income interest to charity creates a gift tax savings.  Generally, the goal of this arrangement is to reduce or avoid gift and estate taxes on assets that will ultimately pass to your family.

If you would like more information about charitable lead trusts, please call our 

Gifts Through Wills and Trusts

Naming Tulsa Boys’ Home a beneficiary in your will or trust can be an effective way to make a gift.  Many people would like to do more for ministry, but have other responsibilities to consider.  A gift in your will or trust allows you to give when you no longer need the funds and also lowers your estate taxes.

If you would like more information about wills or trusts, please call our Donor Relations Manager, Lucy Willis, at 245-0231 Ext. 5055 or by email at lwillis@tbhinc.org