Gifts of cash are sometimes made on an annual basis, according to tax circumstances at the time. Securities may be given in lieu of cash. Donors may receive tax deductions in the amount of the fair market value of the stock at the date of donation, subject to certain limitations. Donors of securities need not pay capital gains tax where stock has appreciated in value since the acquisition date. Real estate has the same benefits as securities.
Life insurance is an increasingly popular gift.
The Foundation is irrevocably named the beneficiary and policy owner. Donors obtain a federal tax deduction of approximately the cash surrender value of the policy. Charitable remainder trusts become operative during the donor's lifetime. Thus they provide a lifetime income to the grantor and permit an immediate income tax deduction. A charitable remainder annuity trust provides an annual income of a specified amount, while a charitable remainder unitrust provides a variable rate of return.