Giving from North America
The Friends of the Oxford Centre for Hindu Studies Inc (FOCHS) has been established so that residents of the United States can support the OCHS in a tax efficient way.
FOCHS founding members are Todd and Amanda Wahlstrom, and Sharmila Bhattacarya-Ford and Alfred Ford.
These supporters of the OCHS also established the annual Wahlstrom Lectures and Ford Lectures.
Here are some tax-deductible ways to support the OCHS through FOCHS. More information on each of these methods is available further down this page.
Representatives of FOCHS are available if you would like to explore these or other methods of supporting the OCHS.
We can accept:
(1) Checks, payable to FOCHS, and sent to: The Treasurer, FOCHS, PO Box 2152, Alachua, FL 32616
(2) Negotiable Securities
(3) Outright Gifts, including real estate or securities
(4) Income-Providing Gifts
(5) Gift Annuities
(6) Deferred Gift Annuities
(7) Charitable Remainder Trusts
(8) Charitable Lead Trusts
(9) Bequests
(10) From Retirement Plans
What is the most tax-efficient way for me to give?
Hyperlink to full text for each below
(1) Cash
(2) Securities
(3) Real Estate
i. Outright gifts of real estate
ii. Gift of real estate to provide income
iii. Gift of real estate and retained life estate
(4) Other assets
Tax Deductibility
All donations made by United States and Mexican taxpayers (pursuant to Article 22 of the Mexico-US Tax Treaty of 1992) to the Friends of the Oxford Centre for Hindu Studies are tax deductible. FOCHS is a recognised public charity pursuant to Section 501(c)(3) of the Internal Revenue Code. Its taxpayer identification number is IRS No. 54-2134081. A tax receipt will be issued as soon as the donation is processed by the FOCHS.
In order for gifts to be tax-deductible, the Board of Directors of the Friends of the Oxford Centre for Hindu Studies Inc must retain control over grants made to the Centre – gifts must be unrestricted. However, the Board of Directors will consider the preferences of donors when deciding on how donations should be disbursed. Gift forms use specific wording required by U.S. law in order for gifts to be considered tax-deductible by the IRS.
Checks should be made payable to the "Friends of the Oxford Centre for Hindu Studies" and posted to:
The Treasurer
Friends of the Oxford Centre for Hindu Studies
PO Box 2152
Alachua FL 32616
(2) Contributing negotiable securities
A contribution of appreciated negotiable securities can provide substantial tax benefits for donors. A gift of highly appreciated securities offers special advantages since the portion of the fair market value that represents increase in value is generally not subject to capital gains tax.
Outright gifts to the FOCHS can be used to support facilities, fellowships, scholarships and programs specified by the donor. A gift of highly appreciated assets, such as securities or real estate, offers special advantages since the portion of the fair market value that represents increase in value is generally not subject to capital gains tax.
The following example demonstrates how current tax regulations favour gifts of appreciated assets to FOCHS.
Example: Mr and Mrs Smith own securities now worth $100,000. The original cost (the cost basis) twenty years ago, at purchase, was $20,000. If the donors transfer the shares directly to FOCHS, the full market value of the gift, $100,000, will be directed to the benefit of their choice, and they will receive a charitable tax deduction of $100,000 and completely avoid capital gains tax. If, on the other hand, Mr. and Mrs. Smith first sell the securities and contribute cash to FOCHS, the $80,000 in appreciation will be taxed at their current capital gains rate of 20 percent, or $16,000.
The Smiths will have $84,000 net to contribute.
The same tax advantages generally apply to an outright gift of highly appreciated real estate.
(4) Gifts that provide income and other financial benefits
Planned gifts and bequests offer the donor income and tax advantages and often make possible a far larger gift. In typical planned gifts, donors transfer assets to FOCHS; they and/or others receive income payments for life or a period of years and charitable income and other tax benefits.
Donors may choose a fixed or variable income stream. In all instances, the donor should consult a financial or legal advisor before completing the gift.
(5) Gift annuities
Gift annuities can augment the financial and estate plans of donors of retirement age and beyond. Under the terms of a gift annuity, a donor transfers assets to FOCHS while receiving fixed payments for life and/or the life of another. The payout rate and charitable income tax deduction varies with the age of the donor or other income beneficiary.
Example: In honour of her 50th Reunion, Mrs. Ricks contributes $10,000 in cash to fund a charitable gift annuity. Now age 72, she receives fixed annual payments of 8 percent, or $800 per year, for her lifetime and a charitable tax deduction in the year of her gift. Additionally, a portion of the annuity payment will be tax free for a number of years.
Minimum gift: $10,000
(6) Deferred gift annuities
Donors of deferred gift annuities contribute cash or appreciated securities and receive annuity payments beginning at a future time they choose. The minimum age to contribute to a deferred gift annuity is 50. The annuity rate is based on how long payments are postponed, the age of the annuitant when payments begin, and other factors. The donor receives a larger charitable income tax deduction because of the deferral.
Example: Mr. Lyon, age 52, wishes to make a significant gift. He is in the highest income tax bracket and is interested in an offsetting charitable tax deduction. He funds a deferred gift annuity with $100,000 in appreciated securities. At age 70, when he has elected to begin receiving income payments, his income payment will be greater than it would be for an immediate payment annuity. His charitable tax deduction in the year of his gift also will be substantially higher than the deduction in the year of his gift also will be substantially higher than the deduction of an immediate payment annuity.
Minimum gift: $10,000
(7) Charitable remainder trusts
Charitable remainder trusts offer flexible giving opportunities for those who wish to provide significant future funding for the benefit of the Centre. The donor transfers cash or appreciated assets to a trust, which provides payments for the lifetime of one or more persons or for a term of years. At the time designated by the donor, funds remaining in the trust are transferred to FOCHS to benefit that which the donor chooses. Charitable remainder trusts can be designed to provide variable or fixed payments while offering donors several tax and payment benefits. Donors who prefer a fixed income may choose a charitable remainder annuity trust. The annual payout amount (at least 5 percent) for the duration of the trust is agreed upon when the trust is created.
Or donors may select variable payments that fluctuate with the earnings of the trust assets. The charitable remainder Unitrust offers annual payments equal to a percentage of the value of the trust assets as valued each year. The percentage (at least 5 percent) is determined by the donor when the trust is created.
Through a charitable remainder trust, donors can realize their philanthropic dreams while responding to immediate financial concerns. Payments from a charitable remainder trust can supplement retirement income, help defray the educational expenses for a grandchild or other family member, or augment the income of an older relative.
In all instances a remainder trust provides income to the donor or other income beneficiary for life or other permissible period and a charitable tax deduction in the year of the gift, generally it reduces estate taxes. When appreciated assets are contributed, no capital gains tax is due on the appreciated portion of the fair market value. Because no capital gains tax liability is incurred, funding a charitable remainder trust with highly appreciated real estate is especially advantageous. Payments from a charitable remainder trust may also incur relatively low taxes.
Minimum gift: $100,000
(8) Charitable lead trust
For donors with extensive assets, including those who would like to preserve closely held businesses for the next generation, a charitable lead trust may provide particular gift and estate tax benefits. During the term of the trust, payments, either fixed or variable, are made to the Friends of the Oxford Centre for Hindu Studies. At the end of the period, the assets in the trust are transferred to the donor’s heirs.
Example: Mr. Thatcher has substantial assets and does not need additional income. He has several grandchildren at university and would like to leave them $1,000,000. After careful consideration of alternative plans, he decides to fund a charitable lead trust that will pay 7.5 percent to FOCHS for fifteen years.
The total distribution to the FOCHS over the term of the lead trust for purposes specified by Mr. Thatcher is $75,000 per year for fifteen years or a total of $1,125,000. The assets remaining in the trust are distributed to the grandchildren. Any appreciation in the value of the assets passes to the grandchildren, free of estate and gift tax. The charitable lead trust can thus provide a way to make very significant charitable gifts without “disinheriting” loved ones.
Minimum gift: $100,000
(9) Bequests
A bequest by will, revocable living trust, or similar plan preserves the donor’s financial security. In addition to cash and securities, bequests to FOCHSmay include real estate, works of art, rare books, patent rights, or virtually anything of value. All outright bequests to the FOCHS are exempt from federal estate taxation.
Assets from an estate can pass under will or trust to legatees in the following ways:
The donor directs that a specific dollar amount come to the FOCHS. With this option, donors know exactly what sum will be applied to the use of their choice.
Similarly, a donor can designate a specific item or asset to be given to the FOCHS. Prior consultation will ensure that the asset will fit the Centre’s long-term plans.
A donor may specify a percentage of the value of the estate for the FOCHS.
When making or revising a will, a donor should obtain the assistance of a lawyer. The FOCHS would be pleased to work with a donor and his or her lawyer to design an estate plan specifically tailored to the donor’s wishes. Following are suggested forms for making various types of bequests.
Outright bequest in will:
Specific dollar amount:
"I bequeath the sum of ($ ), without reduction for any tax occasioned by my death, to the Friends of the Oxford Centre for Hindu Studies, a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate."
Percent of estate:
"I bequeath (____) percent of my estate, without reduction for any tax occasioned by my death, to Friends of the Oxford Centre for Hindu Studies, a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate.
Specific property (personal property):
"I bequeath (describe property) the Friends of the Oxford Centre for Hindu Studies, a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate.
Specific property (real estate):
"I devise all of my right, title, and interest in and to the real estate located at (give address or otherwise describe property) to the Friends of the Oxford Centre for Hindu Studies a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate.
Share of or entire residue of estate:
"I devise and bequeath [(all) OR (percent)] of the remainder of my property, without reduction for any tax occasioned by my death, to the Friends of the Oxford Centre for Hindu Studies a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate."
Conditional bequest in will:
Insert the conditional language in one or more of the above provisions. For example:
"If my husband (wife) does not survive me, I bequeath the sum of $ , without reduction for any tax occasioned by my death to the Friends of the Oxford Centre for Hindu Studies, a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, to be used or disposed of as FOCHS in its sole discretion deems appropriate.
If the gift to the Friends of the Oxford Centre for Hindu Studies is for a specific purpose, insert the restriction in place of the words "to be used or disposed of as FOCHS in its sole discretion deems appropriate." For example:
"I bequeath the sum of $ , without reduction for any tax occasioned by my death, to the Friends of the Oxford Centre for Hindu Studies, a State of Florida, non-profit corporation having a principal place of business in Alachua, Florida, for the following use and purpose: (describe) ."
In the event of a gift subject to a restriction, one of the following provisions are suggested:
"However, I impose no legal or equitable obligation in this regard."
-or-
"If in the judgment of the Friends of the Oxford Centre for Hindu Studies it has become, or is likely to become, impossible or impracticable to accomplish the purpose of this gift, the income or principal, or both, of this gift may be used for such related purpose and in such a manner as determined by the Friends of the Oxford Centre for Hindu Studies."
Provisions for family members should, of course, come first in a donor’s estate plans. A gift of all, a specific amount, or a percentage of the residue ensures that the donor’s personal and charitable goals are both met.
The donor should always consult an attorney when drawing up a will or other long-range financial plans, as tax and other laws vary from state to state and change often.
(10 )Retirement plans
Retirement plans, including IRAs, 401(k) plans, Keogh plans, and others, can provide excellent “pockets” from which to make charitable gifts. Many people are surprised to learn that heirs will receive relatively little of the balance in such plans after estate, income, and other taxes are deducted. Donors should check with financial advisors to learn more about making current and future gifts utilizing retirement assets in tax-favoured ways.
What is the most tax-efficient way for me to give?
A donor may consider funding a planned gift with the following assets:
(1) Cash
Cash is often the most convenient asset to transfer. Cash gifts are deductible in the year of the gift up to 50 percent of the donor’s adjusted gross income. Any excess can be carried forward for possible use in as many as five future tax years.
(2) Securities
Owners of highly appreciated securities may be reluctant to sell and pay capital gains tax on the appreciation portion of the fair market value. Funding a charitable remainder trust with securities can avoid capital gains tax liability at the time of the gift. The full value of the gift is available to the FOCHS to invest for the donor.
A current of deferred charitable gift annuity also may be funded with appreciated securities. Capital gains tax on a portion of the appreciation is realized but reported gradually, over the actuarial life span of the donor. As with all gifts or appreciated property, the donor may claim the deduction in the year of the gift, subject to a limit equal to 30 percent of adjusted gross income. As in the case of gifts of cash, unused deductions may be carried forward into five future tax years.
(3) Real estate
Real estate may appreciate more than other assets while yielding little income. A gift of real estate offering special benefits to both the donor and the Centre can be accomplished in several ways.
i. Outright gifts of real estate
An outright gift of appreciated real estate results in a charitable tax deduction to the donor based on the fair market value of the property.
ii. Gifts of real estate to provide income
Funding a charitable remainder trust with a gift of real estate can provide a donor or designated beneficiary income for life or another period. As with gifts or other appreciated assets, the donor avoids capital gains tax on the increase in value of the real estate at the time the gift is funded.
iii. A gift of real estate and retained life estate
A donor may give the FOCHS a farm, principal residence, or vacation home and retain use of the property for life. The donor receives a charitable tax deduction equal to a portion of the value of the property in the year of the gift and retains rights and duties of ownership.
*The Tax Relief Act of 1997 changed some of the tax benefits for owners of real estate held long-term. These changes should be reviewed with a financial advisor.
(4) Other assets
Life insurance, stock in closely held businesses, and certain personal property such as artwork, antiques, and jewellery also can be given to the FOCHS. Special considerations apply to each category.
In the instance of life insurance, for example, the donor transfers ownership to the FOCHS and names it as the primary beneficiary. If the policy is not paid up, the donor makes annual contributions equal to the premium amount and is credited with deductible gifts of cash to FOCHS, which then pays the premium.
Stock in a closely held corporation can be used as a funding asset. An expert appraisal will establish the fair market value of the stock for gifts in excess of $10,000.
A life income gift can be funded with such tangible personal property as furniture, books, automobiles, jewellery, paintings, and antiques. The donor’s charitable income tax deduction typically will be limited to the amount paid for the object. When such property is used to fund a charitable trust, capital gains tax is bypassed at the time of funding the gift, and payments will be based on the full value of the property.
Stewardship
The Oxford Centre for Hindu Studies and the Friends of the Oxford Centre for Hindu Studies Inc take their stewardship responsibilities seriously. Every year, the Director of the Oxford Centre for Hindu Studies writes to donors about the Centres’ accomplishments and plans. The Board of Governors host an annual dinner for major donors.
The FOCHS President is also available to answer stewardship questions.
More information
Representatives of the FOCHS will be pleased to answer your questions and work with you and /or your advisors if you would like to explore ways to make gifts while preserving your financial well-being and that of your family.
If you would like a representative of the FOCHS to contact you about planned giving, please complete the following form:
Oxford Centre for Hindu Studies
15 Magdalen Street
Oxford
OX1 3AE UK
Tel: +44 (0)1865 304300
Fax: +44 (0)1865 304301
E-mail: info@ochs.org.uk
Website: http://www.ochs.org.uk/