Giving to benefit the industry NOW…
An outright gift enables you to make a difference now by funding current research projects and helping attract and retain qualified students to pursuit their careers in horticulture. The simplest way to make an outright gift is to write a check or donate online by clicking the Donate button below. The gift costs you less due to an immediate income tax charitable deduction.
While the easiest way to contribute to AFE is through cash gifts, sometimes this is not possible for many people because they have mostly non-cash assets. Furthermore, from a tax standpoint it may be better to give something other than cash.
You can give appreciated property such as stocks, bonds, mutual fund shares, real estate and closely held business interest and receive an income tax deduction at fair market value. There is a double tax benefit when a person makes charitable gifts with appreciated property, such as stocks or mutual funds. A charitable deduction is allowed for the current fair market value, and the capital gains are not taxes.
Example: Mr. and Mrs. K would like to create an endowed scholarship fund. They contribute stock now worth $50,000 which they purchased a few years ago for $35,000. They realize the following tax benefits:
Charitable deduction of $50,000 which, given their 33 percent tax bracket, results in $16,500 of tax savings.
Avoidance of $2,250 of tax on the gain they would have incurred if they sold the stock.
Thus, their total savings are $18,750, which means the net cost of their $50,000 gift is only $31,250.
For instructions on how to transfer stock gifts, please contact AFE at (703) 838-5211.
Charitable Deduction Rules
Here is a summary of the income tax deduction rules for outright gifts:
- Cash – Face amount
- Securities and real estate owned over one year – Fair Market Value
- Securities and real estate owned one year or less – cost basis or fair market value, whichever is less
Tangible personal property
If owned one year or less – cost basis or fair market value, whichever is less
If owned over one year and for a “related” use – fair market value
If owned one year or more and for a “non-related” use – cost basis or fair market value, whichever is less
Charitable Lead Trust
With a charitable lead trust, property is irrevocably transferred by you into a trust arrangement. The trust makes payments to the American Floral Endowment for a specified period of time and then distributes the principal to you or to your heirs.
Through a charitable lead trust, you can support AFE while significantly reducing gift and estate taxes in passing assets to your children or grandchildren. Alternatively, a charitable lead trust can be set up to provide to you a tax deduction in the year of the donation while allowing you to recover the asset at a later predetermined date.
Income from a charitable lead trust can either be paid in a fixed dollar amount (under a charitable lead annuity trust) or at a fixed percentage of the annual trust balance (under a charitable lead unitrust). A trust can be set up during your lifetime, allowing you to see the benefit of your gift to the community, or it can be established through your will.
We would be pleased to prepare an illustration showing how a charitable lead trust could work in your situation. There is no cost or obligation and all information will be kept confidential. Please contact AFE for more information.
Types of Assets
The American Floral Endowment accepts gives of:
- Publicly-traded stocks, bonds, and mutual funds
- Real estate (subject to review and approval by the Board of Trustees)
- Gifts of stock in a privately-owned family business, LLC units, and other business interest (subject to review and approval by the Board of Trustees)
We would be interested in discussing with you any type of asset you might be interested in donating to the American Floral Endowment.
In many instances, non-cash assets can make excellent gifts, both for AFE and for you.
For more information, please contact AFE at (703) 838-5211.