Gifts In Kind
Gifts-in-kind have become more popular recently with the demutualization of life insurance companies and with the continuation of tax incentives from the federal government. Examples include shares in a company, bonds and real estate.

If you think that you may want to make a planned gift of shares or real estate, for example, please contact the Foundation office so that we can help you in this process. Special tax rules and other considerations come into play with a gift-in-kind.

You will want the help of a lawyer, accountant and/or financial advisor to give you advice about the process and the income tax implications. For example, the federal government has allowed certain tax incentives to continue for gifts of publicly traded shares. It may be to your benefit to give the shares outright, rather than cash in the shares and donate the cash.

If you are thinking about donating real estate, there may be questions about the property itself that have to be answered before the gift is finalized. It may not be appropriate for the Foundation to accept a gift of real estate. Having knowledgeable people work with you through the process will make sure that your wishes are handled properly.

The value of the gift receipt is determined by an appraisal process to arrive at the fair market value of the gift. The Foundation will issue an income tax receipt for income tax purposes for the value of the donation received. You are entitled to deduct a portion of the charitable donation against income in any given year. You may also be able to carry forward any unused portion of the charitable donation for up to 5 years. Check with your accountant or financial advisor for advice about how much of a deduction you would be entitled to.

If your gift-in-kind is a publicly traded share, you may be taxed on the capital gain value in the share at the time of transfer. However, it may be that you pay tax only on 25% of the capital gain because as a donation, the taxable portion of the capital gain is reduced by one half. Check with your financial advisor or accountant for full advice on how this type of gift may affect your income tax situation.

For a donation with an appraised value of $10,000.00 or more, you are entitled to become a member of the Heritage Club.

The Foundation will need appraisal documents to show the value of the gift-in-kind and to be able to issue the income tax receipt. The Foundation will need to keep a copy of these appraisal documents for its records. The Foundation will need you to complete direction documents, to comply with income tax regulations and to ensure that your specific wishes are recorded.

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