Money Matters
Fall 2014
Your gifts support the mission of Presbyterian Manors of Mid-America
MISSION To provide quality senior services guided by Christian values.
VISION Together we are making positive differences in the lives of seniors.
Inside This Issue: Solutions to Satisfy Your Year-End Charitable Goals Maximize Your Impact A Tax-Wise Way to Support PMMA This Year
‘It’s About the Mission’ Dr. Carol Willman is an internationally known educator and a “teacher’s teacher,” especially for teaching children with disabilities. Three years after retiring from a distinguished career in education, Dr. Willman made her first connection with Farmington Presbyterian Manor. That was in 1990, when she was “coaxed out of retirement” to become Director of the Midwest Learning Center of Presbyterian Children’s Ser vices. The Center’s offices were across the street from Farmington Presbyterian Manor. Today, Dr. Willman resides in an independent living cottage at Farmington Presbyterian Manor. “As a resident, I realize the good work the Manor is doing for its residents,” she says, “and I have ser ved on the Community Advisor y Council for many years.” A year ago, at age 80, Dr. Willman established a charitable gift annuity for the benefit of the Farmington Presbyterian Manor Good Samaritan Benevolent Care Program. “I feel strongly about the mission of Farmington Presbyterian Manor,” she says. “And the Good Samaritan Program is something Presbyterian Manors offers that many other places do not have.”
Dr. Carol Willman established a life income gift that supports the Benevolent Care Program. Helping Others Born and raised in St. Louis, Dr. Willman earned master’s and Ph.D. degrees in 1960 and 1966, respectively, from the University of Michigan. She focused on special education for children with disabilities. She taught for 34 years in the St. Louis Public School System. She organized the St. Louis Schools’ first classroom for children with multiple disabilities in 1960 and later developed the system-wide program to “mainstream” children with disabilities. Continued on Page 2 >
‘It’s About the Mission’ > Continued from Page 1 Dr. Willman spent 1964 in London, England, where she established a program at the Cheyne Walk Spastic Center to ser ve children with cerebral palsy and other disabilities. She returned to the St. Louis Public Schools to direct the Harris Teachers College Special Education Program, which provides continuing education for special education teachers.
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She has traveled extensively. Her favorite destinations include “anywhere in New England,” as well as London, England, and Prague, Czech Republic.
Receive Payments for Life
A charitable gift annuity provides a donor with income for life, based upon her/his age at the time of the gift. At the donor’s death, the remainder will benefit the Presbyterian Manors program designated by the donor. Contact us today to learn how you can benefit from a life income gift.
Solutions to Satisfy Your Year-End Charitable Goals The end of the year is a time when we typically take stock of our personal financial situations and take steps to maximize tax-saving advantages available to us. As you assess your income, gains and losses for the year, remember that charitable giving offers solutions for many of your tax concerns. What to Give While cash donations provide the lifeblood of our support, other types of donations may offer you greater tax benefits. Look to your highly appreciated assets, such as securities and real estate, that you have owned for more than one year. If donated, these can provide a deduction for the entire fair market value.
•S ecurities. In spite of stock market fluctuations, securities may be an excellent asset to consider when making charitable gifts at year-end— especially securities that are higher in value than when first acquired. If you have depreciated assets, however, it is better to sell the asset,
write off any allowable loss available under the tax laws, then use the cash to make a gift.
•R eal estate. Depending on your circumstances, gifts of real estate may be an effective means of planning a gift. If you have appreciated real estate, talk to your advisor about the best way to give the asset.
We hope that you are able to take advantage of charitable alternatives that may help with your tax planning. For more information, contact Ed Shafer at 316-652-6224 or eshafer@pmma.org.
FREE! Our Gift to You Would you like to know how to make your charitable gift accomplish even more for you and for us? Send for our FREE guide 3 Ways to Squeeze More Value From Your Appreciated Assets. Simply complete and return the enclosed sur vey.
Maximize Your Impact
Give a Tax-Smart Gift That Leaves More for Your Heirs If you would like to support Presbyterian Manors of Mid-America after your lifetime through your estate, there are many gift options. But our supporters often worr y that including a gift in their estate plans means there will be less assets left for their children. We have good news: When you name PMMA as the beneficiar y of all or a portion of your retirement plan assets and leave other less-taxed assets to your children, you can make a significant impact on the people we ser ve and leave more for your heirs.
Inheritances such as real estate, cash, and life insurance also pass to your children income tax–free. In contrast, if your children are the beneficiaries of your retirement plan assets, federal income taxes may erode up to 39.6 percent of the assets—significantly reducing the amount of your hard-earned dollars they will actually receive.
Relieving the Tax Burden of Retirement Plan Assets As a nonprofit organization, we are tax-exempt and bypass any federal taxes. This means when you name PMMA as a beneficiar y of your retirement plan assets or include us in your other estate plans, we are eligible to receive the full amount of your charitable gift.
Example: Tax-Smart Planning Jan, a widow with a $1.5 million estate, wants to leave PMMA a gift valued at $750,000. She also wants to leave something to her only daughter, Sandra, who is in the 28 percent federal income tax bracket. Take a look at Jan’s options, below.
Example: Option 1: Jan divides each of her assets equally between her daughter, Sandra, and PMMA.
Option 2 maximizes Jan’s assets—leaving $750,000 ($105,000 more than option 1) to her daughter while supporting the PMMA mission with a $750,000 gift after her lifetime.
Option 2: Jan names PMMA the beneficiar y of her retirement plan assets and leaves her daughter all of her other assets.
Sandra
PMMA
OPTION 1
OPTION 2
OPTION 1
OPTION 2
IRA
$375,000
$0
$375,000
$750,000
Other assets (house, securities, cash)
$375,000
$750,000
$375,000
$0
($105,000)
$0
$0
$0
$645,000
$750,000
$750,000
$750,000
Federal income tax owed Net amount to beneficiary after taxes
Make the most impact with a gift of retirement plan assets. If you have any questions about this tax-smart gift option, contact Ed Shafer at 316-652-6224 or eshafer@pmma.org today.
A Tax-Wise Way to Support PMMA This Year Are you looking to sell stock, mutual fund shares, or other property that has increased in value since you bought it? Beware of the tax you will likely owe on the capital gain. One way to resolve this issue is to donate the property to Presbyterian Manors of Mid-America.
on your income taxes for the full fair market value of the asset up to 30 percent of your adjusted gross income, when you itemize on your tax return. If you cannot use all of the deduction in the year of your gift, you have up to five additional years to use the remaining deduction.
The Benefits of Giving Stock If you donate appreciated property to PMMA that you have held longer than one year, you completely eliminate the capital gains tax. We can sell the property tax-free. In addition, you receive a charitable deduction
Consider Your Options The chart, below, shows how the way you make your donation can affect your total tax savings. The example assumes you are in a 28 percent federal income tax bracket.
$10,000 Given Three Ways
Which Benefits You—and Us—More?
Give $10,000 Cash to PMMA
Sell $10,000 in Give $10,000 in Appreciated Property Appreciated Property and Give Cash to PMMA Directly to PMMA
Fair market value of gift
$10,000 cash
$10,000 cash
$10,000 property
Cost basis of property
N/A
$2,000
$2,000
Long-term capital gain of property
N/A
$8,000
$8,000
N/A
($1,200) due to IRS
$1,200 eliminated
$2,800
$2,800
$2,800
$2,800
$1,600
$4,000
$7,200
$8,400
$6,000
Long-term capital gains tax ($8,000 x 15%)
Income tax savings ($10,000 x 28%)
Total tax savings (capital gains tax + income tax savings)
Net cost of gift (fair market value of gift – total tax savings)
Please feel free to contact Ed Shafer with any questions you may have about giving appreciated property.
For Giving Information Edwin Shafer, FAHP, CFRE Senior Vice President of Development
Gene Rietfors Director of Major and Planned Gifts
Tel: 316-685-1100 800-336-8511 E-mail: eshafer@pmma.org
Tel: 316-685-1100 800-336-8511 E-mail: grietfors@pmma.org
If you wish to be removed from our fundraising mailing list, please contact us toll free at 800-336-8511.
P.O. Box 20440, Wichita, KS 67208-1440
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