SUPPORT

Gifts of Cash

Perhaps the most common type of gift is cash. It provides the donor with a simple, straightforward way to support Northern Kentucky Community Action Commission’s work. Cash gifts may be given immediately or pledged over a number of months or years. Your gift is fully deductible, up to 50% of your adjusted gross income. If your gift totals more than the 50% limit, you can carry over the excess portion for up to five tax years.

Memorials

The tradition of sending flowers in memory of a departed friend or loved one is giving way to a new tradition of giving a donation to Northern Kentucky Community Action Commission in their honor. Friends, family members, and colleagues often choose to remember a loved one through a memorial gift to Northern Kentucky Community Action Commission. For those who have benefited from NKCAC services during their life time or who are committed to helping those less fortunate, it is a fitting tribute which also affirms the importance of helping others help themselves.

Bequests

With a little planning you can continue to make a difference for your community long after you are gone. Sort of an “eternity leave plan.” Including Northern Kentucky Community Action Commission in your will can help provide quality services far into the future.

Your bequest can be for a specific dollar amount, a percentage of your estate or a percentage of the residual of your estate (the amount that remains after specific bequests to your loved ones are paid). Making a charitable gift through your will may reduce or eliminate federal estate taxes. Bequests don't have to be cash gifts. Real property and securities can also be included as your bequest to NKCAC.

Gifts of Stock

Stocks and mutual funds have become popular investments. On average, stocks post returns of about 10% annually. Consequently, many investors see dramatic appreciation in the value of their securities over time. Such stocks often make excellent charitable gift choices.

Because federal tax laws offer special incentives for gifts of appreciated stock, many donors find this to be an ideal way to support Northern Kentucky Community Action Commission. Donors can deduct the full fair market value of a gift of stock, up to 30% of their adjusted gross income. Giving appreciated securities is more tax-wise than giving cash because you receive a tax deduction on the appreciated value, not on what you initially paid for the stock. In addition, you avoid the capital gains tax on that appreciation. For maximum tax benefit, you should contribute shares of stock you have owned for over one year.

Gifts of closely-held stock also benefit NKCAC while increasing your spendable income. Your company can realize tax benefits if the corporation has accumulated substantial earnings over the years. The gift not only saves current income taxes but also reduces the likelihood of an accumulated earnings tax being assessed against your company.

Life Insurance

A gift of life insurance may offer a simple way to support Northern Kentucky Community Action Commission, particularly if you find that you no longer need your policy for its original purpose, such as education of your children, payment of a mortgage in the event of early death or financial protection of your family.

You can make a gift of life insurance in one of these ways:

• transfer ownership of a paid up policy, where you receive a charitable deduction approximately equal to the replacement cost
• transfer ownership of your current policy to Northern Kentucky Community Action Commission
• make Northern Kentucky Community Action Commission the owner and beneficiary of a new policy
• name Northern Kentucky Community Action Commission the beneficiary of your current policy.

Using your IRA to benefit NKCAC

For many donors, an ideal method of giving is through a retirement plan gift. Because taxes are deferred in many pension and retirement plans—including standard IRA’s—the taxes are often paid upon the death of the covered retiree. This results in an unusually high tax for your heirs, a result you do not want. To avoid such high taxes, you may want to consider naming your spouse as the primary beneficiary of your plan, with Northern Kentucky Community Action Commission as the final contingent beneficiary.

If you are 70 1/2 years old, you must begin taking payments from your IRA's. If you do not need the money at this time and do not want the tax consequences that a distribution may cause, giving the distribution to NKCAC is your answer. Not only do you meet the distribution requirements of the IRA, but you receive a deduction for a charitable contribution, in effect, reducing your tax liability for the year.

In-Kind Gifts

Donors may choose to provide non-cash, tangible personal property (in-kind) gifts to Northern Kentucky Community Action Commission. These gifts typically fall into three primary categories:

• Items which may be productively used by NKCAC in our work. Examples include vehicles, office equipment, computer hardware and software, food and beverages, etc.
• Items for distribution to agency clients and participants. Typical items include clothing, food, books, household items, and furniture.
• Items which are not immediately useful for the agency in their given state, such as real estate, jewelry, antiques, artwork, furniture, etc. Such gifts will typically be converted to cash to carry out the work of Northern Kentucky Community Action Commission.

NKCAC reserves the right to accept or decline any proposed in-kind donation.

Gifts of Land

Virtually any real property—a home, farm, office building or land—can become a gift to Northern Kentucky Community Action Commission. When you contribute long-term appreciated securities or real estate, you can deduct the full fair market value of the property, effectively giving away the capital gain tax obligation. In this way, you avoid any capital gains tax and receive a charitable income tax deduction for the gift. As with securities, gifts of real estate are eligible for a deduction of up to 30% of your adjusted gross income.