Other Ways to Give

The Arkansas Foodbank provides this information for educational purposes and to expand donors’ understanding of charitable giving and philanthropy.  Your charitable gifts build stronger, more vibrant communities; improving the lives of thousands each year.  We encourage you to visit with your financial and accounting advisors as you consider your philanthropic plans.

1. Gift of Cash: You can deduct annual cash gifts (checks, credit card, etc.) up to 39.6 percent of adjusted gross income annually. On a $10,000 annual cash gift in the 30 percent tax bracket, you can save up to $3,000 in taxes, annually.
2. Appreciated Stock: Appreciated stock (held more than one year) makes an excellent gift. You avoid all capital gain taxes which are 20% and 15% depending on income bracket; and you receive a charitable tax deduction on the entire value of the stock gifted.  The gift is valued on the day that it is signed over to the Arkansas Foodbank.  The stock must be signed over to the nonprofit before it is sold or the donor loses significant tax benefits.
3. IRA Account: Those who are 70½ and older can direct up to $100,000 of their IRA distributions to charity, annually. The money given to the charity will count toward a person’s required minimum distribution, and it won’t increase a person’s adjusted gross income or generate a tax bill.
4. Bonds, Mutual Funds: Bonds and mutual funds are similar to cash in their tax treatment. State, Municipal, and U.S. Government Bonds are welcome.
5. CD’s, Saving Accounts, Brokerage Accounts, and Checking Accounts with P.O.D. provisions: The P.O.D. stands for Payable on Death. You retain full ownership and full control during your life. At your death, the account balance is paid to your named beneficiary (nonprofit) immediately and without probate.
6. Charitable Gift Annuity: In exchange for a gift of cash, stock or securities, the nonprofit organization or another party will pay you and your survivor, or another person you name, a guaranteed income for a period of years. You receive a substantial tax deduction in the year of the gift and part of the income is tax-free. Upon your death, the gift remainder supports the Arkansas Foodbank.
7. Deferred Gift Annuity: Similar to a gift annuity except that payments begin at a future date determined by you – retirement for example. Your tax deduction and annual rate of return increase the longer you wait to start payments. This is a very effective retirement planning vehicle.
8. Bequest made in a Will: One of the simplest ways is to give of your estate. You can make a gift bequest, after others have been provided for, of a dollar amount, specific property, a percentage of the value of the estate, or what is left (remainder) to the Arkansas Foodbank. The Arkansas Foodbank (AFB) provides the following samples of charitable bequest language for those who wish to leave a legacy at AFB upon their death.

“I give to Arkansas Foodbank, a nonprofit corporation currently located at 4301 W. 65^th St, Little Rock, AR (tax identification #71-0596734), or its successor thereto, ______________ [written amount or percentage of the estate or description of property] for its unrestricted use and purpose.”

9. Gift of Life Insurance: A simple way to make a significant future gift is to name the organization beneficiary to receive all, or a portion of the proceeds of an existing life insurance policy. You will receive a tax deduction for the cash surrender value, thus reducing your tax liability in the year of the gift.

10. Outright Gift of Real Estate: One of the most overlooked gift forms is real estate. We will be happy to discuss the possible gift of land, a house, or vacation home. You will receive a tax deduction for the full fair market value, as well as avoiding all capital gain taxes. The Arkansas Foodbank liquidates these types of gifts and invests the proceeds at the Foodbank.

12. Real Estate with Life Tenancy, also called a Life Remainder Interest Deed: Receive a substantial income tax deduction by giving (deeding) your home or farm to the Arkansas Foodbank now. You continue to live there, maintain the property as usual, and even receive any income it generates. At your death, the Arkansas Foodbank will sell your property to support the Foodbank.                
13. Charitable Remainder Trusts (Irrevocable) (Annuity and Unitrusts): Donors can select the rate of return from these income arrangements and also choose a fixed or fluctuating annual payment. Capital gain taxes are avoided and you will receive a tax deduction based on the age of the income recipient and the rate of return.
14. Charitable Lead Trust: In a charitable lead trust assets (cash or securities) are transferred to a trust that pays income from the fund to the organization for a predetermined number of years. At the end of the time period, the trust terminates and the assets are given back to the persons you name. The income tax deduction is for payments made annually to the organization.