MISSION MATTERS
FEBRUARY 2024
Masonic Charities Update
Tax-Smart Giving
Here’s a more detailed description of how Peter and Masonic Charities benefited from this concept:
Using Appreciated Securities A couple months ago, I was discussing gift planning options with Peter, one of our Masonic Charities donors. While contemplating a $25,000 cash gift, Peter mentioned owning some appreciated stock.
“It would be hard to part ways with stock,” Peter said. “What makes you so attached to your stock investment?” I asked. “Well, it’s performed well for the 20+ years I’ve held it,” Peter responded. I could understand his emotional attachment to something that had served him well, but considering Peter’s charitable intent, I proposed the following:
”What if there’s a potential opportunity to meet all your objectives and achieve a win-win-win situation?” Intrigued, Peter asked me to explain. We discussed the following concept:
1. Transfer $25,000 of appreciated stock to Masonic
Charities, avoid capital gains taxes, and if the holding is over one year, deduct the full market value – WIN #1
2. Maximize the total amount going to the charity,
since those taxes won’t reduce the gift – WIN #2
3. Use $25,000 in cash to buy the very same stock
back and maintain your portfolio value – WIN #3
In this scenario, the donor regains his stock and benefits from avoiding taxes, receiving deductions and maintaining his portfolio goals. Peter was excited about this solution and discussed the plan with his advisor.
Nicholas Mahler, Vice President, Office of Mission Advancement and Development
Peter owns 500 shares of an appreciated stock that is currently trading at $50 per share, which he purchased for $10 per share nearly 20 years ago.
If Peter were to sell this stock and give the proceeds to charity, at his current tax rate, he would pay $3,000 in capital gains taxes on his $20,000 profit and would be able to make an income tax deductible gift of $22,000. But, since Peter decided to transfer the 500 shares directly to the Masonic Charities, a tax-exempt organization, he will pay no capital gains tax and can deduct the full $25,000 value of the gift. Moreover, the program that Peter supports will receive the full $25,000 value of the gift, rather than $22,000. Appreciated securities are also a smart way to fund a gift plan, such as a charitable gift annuity or a charitable remainder unitrust, that will support your favorite charity. The tax deduction for these gifts is limited to 30% of your adjusted gross income (AGI); however, if you can’t use the entire deduction in year one, you can carry over the unused portion for five years. Whether funding a life income gift or an outright gift, consult with your tax advisor regarding the availability of a charitable income tax deduction. The Masonic Charities can also assist donors with the transfer and liquidation process of appreciated stocks through its resources and professional partnership network.
WELCOME TO THE TEAM!
The Masonic Blood+Organ Donor Program promotes Masonic blood drives throughout Pennsylvania, heightens awareness and provides educational materials on sharing the gift of life through blood and organ donation. Effective Jan. 1, 2024, this program has transitioned to become part of the Masonic Charities. We welcome program Director Bill Soloway to our Office of Mission Advancement and Development, with whom we are excited to promote and operate the Masonic Blood+Organ Donor Program. To learn more, visit masonicbloodandorgandonors.org.
3
lives can potentially be saved by 1 blood donation
36,000
units of red blood cells are needed every day in the U.S.
Coming in 2024:
Mission & Charity Education Sessions Learn about how the mission, charity, care and services create an incredible retirement plan for residents of the Masonic Villages. Explore the various charity programs, and learn how donations are used to care for and serve our residents. To register for one of the following free informational events, contact the Office of Mission Advancement and Development at least two days in advance of your preferred date/location at 1-800-599-6454 or giving@masoniccharitiespa.org
Bill Soloway, Director
A 2015 recipient of a life-saving heart transplant, Bill helps others in need of life-saving organ transplants in honor of his donor. “Through my personal experience and transplant journey, I am able to share resources and help others navigate the transplant process,” Bill said.
140
people are added to the nation’s organ transplant waiting list every day
75
people can be helped by just one organ and tissue donor
Masonic Village at Sewickley: March 27, 2 p.m.
Retirement Living Clubhouse Assembly Room
Masonic Village at Elizabethtown: April 2, 10:30 a.m.
Keystone Room in James Buchanan Building
Masonic Village at Dallas: April 4, 11 a.m. Irem Clubhouse – Room TBD
Masonic Village at Lafayette Hill: April 11, 2 p.m. Kenneth R. Mills Auditorium
WHEN TO REVIEW YOUR ESTATE PLAN
FAMILY CHANGE: BIRTH, DEATH, MATURITY
ASSET CHANGE
MAJOR TAX LAW CHANGE
EVERY FOUR YEARS
What Are the Benefits of an Estate Plan? PEACE. An estate plan should give you peace of mind
knowing that important, and sometimes difficult, decisions have been made to care for you and your loved ones.
PROVISION. An estate plan is designed to help
you provide for both you and your family. With a good estate plan, you can give loved ones the property you have acquired in the right way, at the right time and at minimal cost.
PROTECTION. A good estate plan will protect you
in your senior years. It may be important to designate a specific person to manage your property, help doctors and other medical staff with important decisions and make certain that you are receiving the best possible care. An estate plan can increase your lifetime security and also achieve your goals for family and charity. There are four basic steps in the estate planning process:
1. Write Down What You Own. It is important to
understand what property you own and what property will be transferred through your estate. You can use this Wills Planner to help you with this process: masoniccharitieslegacy.org.
2. Work With an Attorney. There are many
knowledgeable estate planning attorneys. You can bring this completed Wills Planner to them so they can prepare the necessary estate planning documents. Feel free to ask the attorney questions and to talk about your goals.
3. Know How Property is Transferred. Some
property is transferred by will, and some is transferred by a beneficiary designation or other form. You need to know how your property will be transferred in order to avoid an accidental disinheritance. With a good plan, your property may be transferred as you desire. Your attorney can help you with this process.
4. Sign Your Will and Medical Directives.
Finally, it is important to sign the documents that correctly express your will and desires, both for your property and for your potential future personal care.
To learn more and create or update your estate plan, visit masoniccharitieslegacy.org and use the Wills Planner or Estate Planning Guide Tool. If you have questions, please contact us. Office of Mission Advancement and Development One Masonic Dr., Elizabethtown, PA 17022 1-800-599-6454 giving@masoniccharitiespa.org
The official registration and financial information of Masonic Charities may be obtained from the Pennsylvania Department of State by calling toll-free, within Pennsylvania, 1-800-732-0999. Registration does not imply endorsement.
Masonic Charities One Masonic Drive Elizabethtown, PA 17022
MISSION MATTERS
Masonic Charities Update
FEBRUARY 2024
NEW Charitable Gift Annuity Rates If you are looking for a way to secure your future, a gift annuity is a simple contract between you and the Masonic Charities of the Grand Lodge of Pennsylvania. You fund it with cash or stock (minimum of $5,000), and we agree to send you a fixed payment each quarter for as long as you live. You can fund one for yourself or for another person, and payments last as long as either of you live. The minimum age for a single beneficiary is 65, and for a two-life annuity, ages 65 and 55. Contact us at MasonicCharitiesLegacy.org or call 1-800-599-6454
NEW HIGHER RATES! FOR ONE LIFE Age Rate 65 5.7% 70 6.3% 75 7% 77 7.4% 81 8.3% 85 9.1% 90+ 10.1%
FOR TWO LIVES Age Rate 55 & 65 4.6% 70 & 70 5.5% 75 & 80 6.5% 85 & 85 8.1% 85 & 90 8.7% 90 & 90 9.8% 90 & 95 9.9%
Note: This is a partial listing. Rates exist for any combination of ages.
View our charitable solicitation disclosures by scanning the QR code or visiting MasonicCharitiesPa.org.
Masonic Charities include: Masonic Library and Museum of Pennsylvania, Masonic Villages, Masonic Children’s Home and the Pennsylvania Masonic Youth Foundation.