Ways to contribute to East Brunswick Public Library Foundation (EBPLF)
By Edward Mendlowitz, CPA
Treasurer, East Brunswick Public Library Foundation
Contributions to East Brunswick Public Library Foundation (“EBPLF”) are deductible on your tax return if you itemize. There are several effective tax methods that can allow you to get extra mileage from your contributions while maintaining or improving your cash position.
Stock payments to EBPLF
Almost all of our contributions are made with checks or credit cards. However, you can donate stock you have owned more than one year that has appreciated and get a full deduction for the stock’s value, not have to pay tax on the gain, and will conserve your cash.
Besides stock you purchased outright, you can donate dividend reinvestment shares, stock spin off shares, stock in demutualized life insurance companies that you received for “free,” or stock you inherited or received as a gift many years ago.
The Foundation’s policy is to immediately sell any securities transferred with the proceeds considered as your charitable contribution.
Transfers can easily be made by instructing your broker to transfer the stock you want to donate to EBPLF. Call or email Jennifer Podolsky Library Director for specific instructions and our broker’s transfer address.
Charitable gift annuity
If you are over age 70 it might be advisable to contribute a charity gift annuity to EBPLF and guarantee a cash flow to yourself for the rest of your life that is greater than the current long-term interest rates. For example a 70 year old can get a 5.1% distribution for the rest of their life, a 75 year old 5.8%, an 80 year old a 6.8% payment and someone 85 a 7.6% payment. Payouts can also be arranged for the rest of both spouses’ lives. Further, there is a limited current income tax deduction based upon your age. The rate and tax deduction will vary based on the current rate when you make your contribution. If you wish, you can have a no obligation meeting with an EBPLF volunteer CPA professional to discuss how this will factor into your personal financial plans.
You can purchase a life insurance policy naming EBPLF as owner and beneficiary. The annual premiums you pay will be tax deductible by you as a charitable contribution and EBPLF will receive the proceeds upon your death. This is a way you can substantially help EBPLF secure its future and establish a leveraged legacy for yourself and family. You can also provide EBPLF with instructions of how you want the proceeds applied.
Remember EBPLF in Your Will
A wonderful way to support EBPLF is to remember EBPLF with a bequest. This can be an amount specified in your will or living trust. You can also specify how you want your bequest applied. You can designate an amount to be paid to EBPLF with wording such as the following:
I designate $50,000 [or any amount of your choosing] to be paid to East Brunswick Public Library Foundation upon my death.
You can also add EBPLF as a beneficiary, partial beneficiary or contingent beneficiary in your IRA, 401k, 403b or other retirement plan using similar language. Any amounts so contributed would not be subjected to any income or estate taxes.
There are other methods that can be used such as charity remainder or lead trusts. If interested contact Jennifer Podolsky, Library Director for additional information.
For additional information on the above and on other sophisticated tax techniques please call Jennifer Podolsky, Library Director who will put you in touch with a CPA volunteer to advise you on the best way you can contribute to EBPLF.
Thank you for considering a significant donation to keep the East Brunswick Public Library a jewel for our community.