Ways Of Giving

There are many ways to give to the Ohr HaTorah NOW Fund. The following are brief ways these gifts can be donated and a few details regarding tax laws. You may wish to check with your financial advisor regarding your particular situation. With our move, our needs are immediate and gifts of cash and more liquid equity are most needed at this time, however all gifts are appreciated and will become increasingly important as we move forward.

Cash
Your gift of cash is the most needed at this time; your donation is fully tax deductible (the only case it would not be if it was more than 50 percent of the donor's adjusted gross income, with a five-year carry-over allowed for any excess (subject to the 50% limitation each year). (Less any benefits)

Pledge Plan
Gifts may be paid in convenient payments, typically in annual installments over a three - five year period for capital funds. Please specify a total pledge amount on the Letter of Intent so we will know how much to count on. Payments are usually made annually, twice per year or quarterly.

Appreciated Securities and IRA Contributions*
A gift of appreciated securities held longer than one year will result in two tax benefits. First, the donor is entitled to an income tax deduction for the fair market value (subject to the 30 percent limitation in any given year), and second, you will avoid paying tax on the capital gain. There also may be tax benefits from transferring funds from your individual IRA accounts; check with your advisor regarding changing laws.

Life Insurance
A life insurance policy to OHT as the sole beneficiary and owner of the policy, will result in an income tax deduction for an amount roughly equal to the cash surrender value of the policy at the time of the gift. In addition, you may deduct pledge payments made to pay the policy premiums after the date of the gift, if the organization's board of directors approves the acceptance of such a gift.

Gift of Residence
You may wish to give personal or commercial property and you may reserve the right to live on the property during your lifetime, after which the property remains with your organization. If such a donor makes an irrevocable gift while retaining lifetime use of the property, he or she is entitled to an immediate tax deduction for the present value of the remainder interest.

Bequests
Some of the largest gifts to charitable organizations over the years have been in the form of bequests by will or living trusts. Many donors find this to be a very useful giving method as part of their over-all estate plan. A letter of intention is sent to OHT with the donor's wishes detailed if supporting a specific need.

Pooled Income Funds
These funds operate much like mutual fund. A donor may make an initial commitment to the fund and keep adding monies. The tax deduction depends upon whether the donor intends to receive earned interest in return or pay interest to the charity. Appropriate licenses must be obtained in order to offer this method.

Charitable Remainder Unitrust
Under this arrangement the donor irrevocably transfers assets to a charitable remainder unitrust. The trust will manage and invest the assets and make annual payments to the income beneficiary. The income beneficiary will receive each year from the trust an amount equal to a fixed percentage (at least 5%) of the total value of the trust assets, as valued annually. After the death of the income beneficiary or after a specified term of years has expired, the remainder of the trust will come to your organization.

Charitable Remainder Annuity Trust
This trust is similar to a charitable remainder unitrust except that the income beneficiary will receive a fixed dollar amount from the annuity trust each year, regardless of fluctuations in the value of the trust assets.

The tax and investment advantages of creating a charitable remainder annuity trust or unitrust are similar. The donor is entitled to an immediate tax deduction for the present value of the remainder interest, and may receive increased income from the value of low-yield securities by contributing those securities to the trust. As is true with the other forms of charitable remainder gifts, after the trust term ends, the remainder of the trust will be transferred to your organization to be used for the exempt purpose specified by the donor.

Charitable Income (Lead) Trust
A variation of the unitrust or annuity trust arrangement is to designate the trust income to your organization with the remainder to come back to the donor after a term of years, usually after 10 years or more. (The donor may designate that the remainder interest be paid to others, such as to children or grandchildren, thus reducing or even eliminating the gift or estate tax usually imposed on such transfers.)

This type of arrangement is particularly advantageous for a donor with high income, or who has used up all other available charitable deductions. With a short-term charitable income trust, the income paid to your organization is not taxed, and the principal later reverts to the donor, say, at retirement, or to a designated beneficiary.

Gifts-In-Kind
Gifts of equipment, furnishing, computers, construction items, services and needed materials are welcome, but considered on a case-by-case basis based on need. Certain gifts, such as art, will require appraisals and are subject to IRS rules regarding reporting and holding periods. Recent changes in the tax law will have an impact on these gifts.