Outright Gifts During Life
Assets which have appreciated in value (and are held for over one year) are especially attractive, since you receive a double tax benefit. You can usually deduct the fair market value of the gifted asset, and also avoid a potential capital gain tax. For wealthier individuals, an additional benefit is the removal of the asset from their taxable estate. These three potential tax benefits can dramatically reduce the after-tax cost of charitable giving.
 

• Outright Gifts During Life

• Life-Income Agreements

• Gifts Taking Effect Upon Death

Appreciated Financial Assets
Many individuals have investment assets (stocks, mutual funds, family businesses, etc.) which are worth more than their original cost. These assets are excellent candidates for lifetime giving.

Real Estate
Farms, rental properties and second homes are often worth much more than when you purchased or inherited them. Depreciation deductions reduce your cost basis, creating even larger tax liabilities when you sell the asset. For these reasons, real estate is often the “asset of choice” for many donors.

Life Insurance
Many individuals no longer need the protection afforded by a life insurance policy and choose to gift ownership of the policy to a charitable organization. Alternatively, you can purchase a new policy and donate it to charity.

Personal Property
These gifts may include automobiles, art, personal collections and the like. As with real estate and closely-held business interests, larger gifts of personal property come with appraisal requirements.