Ways To Invest

Ways To Invest

Ways to Invest in Scouting in the Blue Ridge Mountains Council


Outright Gifts:

  • Cash

    This is the simplest way to make a gift. Outright gifts of cash are deductible up to 50% of your adjusted gross income with any excess above that amount eligible to be carried forward into five future years.

  • Marketable Securities

    Gifts of long-term appreciated securities are a popular alternative to cash gifts. The securities are often individual stocks but may include bonds or shares of mutual funds. By making a gift of securities, instead of selling them yourself and giving the proceeds, capital gains tax is avoided. You may deduct the fair market value of the securities on the gift date, up to 30% of your adjusted gross income, with a five-year carry-forward for any excess.

    If you want to give securities on which you have a loss, consider selling then instead and donating the proceeds to Scouting. You will then have a loss deduction in addition to the charitable deduction. Arrangements can be made to transfer the securities by contacting Ed Harriman at the Council Service Center.

  • Tangible Personal Property

    Property can be given to the Council and a charitable deduction taken if it is used to support Scouting's mission. Such property may include art, rare books, collections and equipment. The same tax benefits that apply to other appreciated gifts usually apply to gifts of appreciated tangible personal property. There are strict valuation and reporting requirements that can be obtained from the Council Service Center.

  • Real Estate

    When gifts of real estate, including undeveloped land, farms, income properties or personal residences, are held long term and transferred to the Blue Ridge Mountains Council by deed, capital gains taxes are completely avoided and the full fair market value of the property is deductible as a charitable contribution. A gift of home or farm with life estate allows the donor to make a gift while maintaining the right to live on that property for life. A partial tax deduction is based on the amount of "life interest" retained by the donor.

  • Planned Gifts:

    Many donors find that a planned or deferred gift is an inviting option. While the use of the gift to the Boy Scouts of America is deferred, the donor takes an action as part of estate planning to provide for this gift at a later time, usually after death. If the action results in an irrevocable transfer, a partial tax deduction is possible.

  • Bequests

    A gift through your will or living trust is a wonderful way for donors of all ages to provide for Scouting in the Blue Ridge Mountains Council. You retain full use of you gift property during your life but have the satisfaction of knowing you have provided a significant gift. You may designate a fixed dollar amount, a percentage of you estate or the residual amount after fulfilling other obligations. Another popular choice is to name the Blue Ridge Mountains Council as a contingent beneficiary in the event that other beneficiaries predecease you.

  • Retirement Plan

    This is an often overlooked vehicle for a deferred gift. Retirement plans are subject to significant taxation when left to family members other than your spouse. By using retirement assets to fund a charitable gift and leaving other assets to family members, you may be able to reduce taxes that will otherwise be imposed on those assets that have grown tax-free.

  • Life Insurance

    Another simple vehicle for giving is life insurance. If you have an existing policy, you may give it to the Blue Ridge Mountains Council by naming the Council as both owner and beneficiary. You may deduct the cash value as a charitable tax deduction, along with any future premium payments you make to the company to keep the policy in force. You can similarly deduct payments on new policies.

  • Charitable Gift Annuity

    This is the oldest, simplest and most popular life income gift. In exchange for an irrevocable transfer of assets, the Boy Scouts of America agrees to pay one or two annuitants a fixed income for life. The amount of income is determined by the age of the annuitant(s). A portion of the transfer is deductible and when cash is used to fund a gift annuity, a portion of income is nontaxable for federal purposes.  When using appreciated securities, the capital gains tax is not payable at once but is spread over the life expectancy of the annuitant(s) and deducted from non-taxable income. This options can often increase the amount of income you receive from the stock. Since income and deduction rates favor the older individual, all annuitants must be age 50 or older.

  • Charitable Remainder Trusts

    For those with larger estates, charitable remainder trusts offer a way to have some assets professionally managed, provide for current needs and those of descendants and still support one or more charitable causes. It is an excellent way to avoid tax on appreciated property. It is also possible to place real estate in a trust for sale or management by the trustee. You determine the income beneficiaries and the amount of income the trust will pay when it is created, both of which will also determine your charitable deduction. Although you would need to use trust and legal assistance, you retain a great deal of flexibility.

    There are two types of charitable remainder trusts. The unitrust provides for income based on a percentage of the fair market value of the trust assets as valued annually. Prudent investment can result in the growth of the trust as a hedge against inflation. The annuity trust provides for a fixed amount (at least five percent of the trust's initial value) to be paid to income beneficiaries.

  • Charitable Lead Trusts

    The lead trust is the opposite of the remainder trust: in this case, the Boy Scouts lead by receiving income from the trust for a specified number of years. At the conclusion of the payout period, the principle reverts to the donor or to named non-charitable beneficiaries. Donors who need to shield income from taxation, or who wish to transfer wealth to heirs at a greatly reduced tax rate, may find this appealing.

    For more information, contact Ed Harriman, (540) 777-7968