Charitable Giving

Giving to the Camden Area District Nursing Association

For over one hundred years Camden District Nursing, a recognized IRS 501 (c) 3 charitable organization, has provided nursing care to residents in their own homes, regardless of their ability to pay. You can ensure that we carry out our mission to serve the towns of Camden, Rockport, Lincolnville and Hope by offering nursing services to patients in their homes, allowing them to age in place in their own homes. 

Support Camden Area District Nursing Association with a Gift of Appreciated Stock

Your generous contribution helps Camden Area District Nursing Association provide vital healthcare services to our community. One of the most tax-efficient ways to support our mission is by donating appreciated stock.

Why Donate Appreciated Stock?

1. Maximize Your Impact: When you donate appreciated stock directly to Camden Area District Nursing Association, you avoid paying capital gains tax. This means your gift goes further, supporting more of our crucial programs and services.
2. Receive Tax Benefits: You can claim a charitable deduction for the full market value of the stock at the time of the donation, which may reduce your taxable income and lower your tax bill.

How to Donate Appreciated Stock

1. Contact Your Broker: Reach out to your broker and let them know you want to transfer appreciated stock to Camden Area District Nursing Association. Provide them with the following information:

   – Our Name: Camden Area District Nursing Association

   – Tax ID: (get the tax id number from Lisa)

   – Brokerage Account Information: [Insert Brokerage Account Details Here]

2. Contact Our Broker and Notify Us of Your Gift: Once you’ve initiated the transfer, so our broker can supply the account information for the transfer and so that we can can properly acknowledge your gift and provide a receipt for your records. You can contact us at (phone number and email).
3. Complete the Transfer: The brokers will handle the rest. Once the stock transfer is complete, we’ll send you a confirmation and a thank you letter acknowledging your generous donation.

 Example of Tax Benefits (Long Term Capital Gains)

Let’s say you purchased stock for $10,000, and it’s now worth $25,000. If you’ve held the stock for more than a year, you can donate it to Camden Area District Nursing Association without paying capital gains tax on the $15,000 appreciation. You can also claim a charitable deduction for the full $25,000 market value, which can significantly reduce your taxable income.

Example Calculation with Short-Term Capital Gains

Let’s assume the same scenario where you bought stock for $10,000, now worth $25,000, but this time you held it for less than a year.

1. If you sell the stock:

-Capital gains: $25,000 – $10,000 = $15,000

– Capital gains tax (37% rate): $15,000 x 37% = $5,550

-Net proceeds after tax: $25,000 – $5,550 = $19,450

If you then donate $19,450, you can deduct $19,450 from your taxable income.

2. If you donate the stock directly:

-Charitable deduction: $25,000 (full market value)

-Capital gains tax avoided: $5,550

In this case, you avoid paying the $5,550 in capital gains tax and can deduct $25,000 from your taxable income.

Talk to your CPA and your Estate Planning Attorney

Make a Difference Today

By donating appreciated stock, you can maximize your tax savings and make a larger impact with your gift. Your support helps us continue providing essential nursing services to those in need in the Camden area.

If you have any questions about the process or need assistance, please don’t hesitate to contact us at help@penbaylaw.com, attention Jessie Bifulco, Attorney; 207.236.4888.

There Are Many Ways for the Charitable Minded to Give and Receive

Here are some estate planning techniques that incorporate charitable giving while at the same time legally reduce your estate and gift taxes:

1. Charitable Remainder Trust (CRT)

A CRT allows you to transfer assets to a trust, providing income to yourself or other beneficiaries for a set period or for life. After the trust term ends, the remaining assets go to a designated charity.

– Tax Benefits: You receive an immediate charitable income tax deduction for the present value of the remainder interest. The assets in the trust are removed from your estate, potentially reducing estate taxes.

2. Charitable Lead Trust (CLT)

A CLT provides income to a charity for a specified term, after which the remaining assets go to your beneficiaries.

– Tax Benefits: You can take a charitable gift tax deduction for the present value of the income interest given to the charity. The assets in the trust are removed from your estate, potentially reducing estate taxes. 

3. Donor-Advised Funds (DAFs)

DAFs allow you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants to charitable organizations over time.

– Tax Benefits: Contributions to a DAF are deductible in the year they are made, reducing your taxable estate. Appreciated assets donated to a DAF avoid capital gains taxes.

4. Gifts of Appreciated Assets

Donating appreciated stocks, real estate, or other assets directly to a charity.

– Tax Benefits: You avoid capital gains taxes on the appreciation, receive a charitable deduction for the fair market value, and reduce the size of your taxable estate.

5. Qualified Charitable Distributions (QCDs) from IRAs

Individuals aged 70½ or older can donate up to $100,000 per year directly from their IRAs to a qualified charity.

– Tax Benefits: The donation counts toward your required minimum distribution (RMD) but is excluded from your taxable income, reducing the overall size of your estate.

6. Charitable Gift Annuities (CGAs)

A CGA allows you to make a donation to a charity in exchange for a fixed annuity payment for life.

– Tax Benefits: You receive a partial charitable deduction in the year of the gift, and a portion of each annuity payment is tax-free. The remaining value of the annuity is removed from your estate.

7. Pooled Income Funds (PIFs)

A PIF is a type of trust that pools together donations from multiple donors. Donors receive income from the fund based on their contributions.

– Tax Benefits: You receive a charitable deduction for the present value of the remainder interest, and the assets are removed from your estate.

8. Charitable Bequests

Including a charitable bequest in your will or trust designating a portion of your estate to a charity.

– Tax Benefits: Charitable bequests are deducted from the value of your estate, reducing estate taxes.

9. Testamentary Charitable Remainder Trusts

This type of trust is established upon your death and provides income to non-charitable beneficiaries for a period, with the remainder going to a charity.

– Tax Benefits: The present value of the charitable remainder interest is deducted from the estate, reducing estate taxes.

10. Establishing a Private Foundation

Creating a private foundation allows you to control charitable giving and potentially reduce estate taxes.

– Tax Benefits: Contributions to the foundation are tax-deductible, reducing the size of your taxable estate. The foundation can make grants over time according to your philanthropic goals.

Summary

These estate planning techniques can help you incorporate charitable giving to minimize estate and gift taxes while supporting causes you care about. It’s important to consult with a tax advisor or estate planning attorney to tailor these strategies to your specific financial situation and goals.

Include a Bequest in Your Will or Trust

Including Camden Area District Nursing Association in your will or trust is a meaningful way to leave a lasting legacy. Here’s how you can do it:

1. Decide on Your Bequest: Determine the type of bequest you want to make. It can be a specific amount, a percentage of your estate, or the residue after other bequests have been fulfilled.
2. Consult with An Estate Planning Attorney: Work with your estate planning attorney to include the appropriate language in your will or trust. Here is some sample language you can use:
• Specific Bequest: “I give, devise, and bequeath [$_____] to Camden Area District Nursing Association, located at [Address], for its general use and purposes.”
• Percentage Bequest: “I give, devise, and bequeath [___%] of the residue of my estate to Camden Area District Nursing Association, located at [Address], for its general use and purposes.”
3. Notify Us: If you include Camden Area District Nursing Association in your estate plans, please let us know. We would like to thank you for your generosity and ensure your intentions are understood.

Make a Difference Today and Tomorrow

By donating appreciated stock or including a bequest in your will or trust, you can maximize your tax savings and make a larger impact with your gift. Your support helps us continue providing essential nursing services to those in need in the Camden area. Your gift to Camden Area District Nursing Association, a recognized IRS 501 (c) 3 charitable organization, is tax deductible.

If you have any questions about the process or need assistance, please don’t hesitate to contact us at: help@penbaylaw.com, attention Jessie Bifulco, Attorney; 207.236.4888.

Thank you for your generosity and support!