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Tips for Making a Smart Year-End Gift
During times like these, your support is even more critical to fulfilling AFA's mission. But since you have probably suffered from recent economic
trends, this is the year to make the smartest gifts possible. Here are a few ways you can more easily support AFA in these uncertain times – we
want the gift you make this year to help you as well as AFA.
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If you own stock that is worth more now than when you purchased or inherited it, but you expect a decline in value, you could donate
those assets, and “lock in the gains.” Remember to give AFA the actual appreciated asset (such as a stock that is worth more now than when
you bought it ten years ago) rather than selling it and making a cash contribution. You may also want to consider real estate.
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This year you probably hold some assets that have increased in value and others that have decreased in value since you purchased them.
If the values of various assets have moved in different directions, you can follow a two-step process that may benefit you as it
benefits AFA:
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Sell the depreciated assets and claim the resulting tax loss to offset your gains;
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Donate some of the sale proceeds to AFA. Depending on your tax situation, your donation will be eligible for a charitable income
tax deduction, further offsetting taxable income for the year.
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One hidden asset that you can give instead of cash is a paid-up life insurance policy, especially if you no longer need it. If you make
Air Force Association the owner and beneficiary, you’ll be able to claim a charitable deduction for the value of the policy and make a
substantial year-end gift to AFA without affecting your cash-flow in any way.
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Now through December 31, 2009, the IRS will allow a qualifying donor to make an outright gift to a qualifying charity from his or
her traditional or Roth IRA account, without incurring income tax on the withdrawal. If you are over 70˝ and need to take withdrawals
from your IRA, this provision may provide a creative source of funds for your charitable giving.
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Finally, a gift through your will, revocable trust, or retirement plan, doesn’t reduce your income in any way during your lifetime. Because
these gifts are revocable, you can change your beneficiary designations if your needs or your family’s needs change over time.
For more information please visit us at:
http://www.legacy.vg/afa/articles/53.html., or contact our Director of Development, Lois O’Connor at
loconnor@afa.org or Ext. 5832.
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