If you have enough assets now and want to see your donation at work, consider a donation of cash or securities.

Cash
The most direct donation that has an immediate benefit to Merrick, Inc., is a donation of cash.

• Donations are 100% tax-deductible.
• Deductions are limited to a total of 50% of your adjusted gross income in any one year, but unused deductions carry forward for up to five years.
• Deductions for $250 or more for any one donation must be documented by a written receipt from Merrick, Inc.

Securities
If you have stock that is worth more than you paid for it, consider donating those securities to Merrick, Inc., rather than cash. Our policy is to immediately sell all donated securities to generate cash for a charitable purpose.

• Stocks, bonds, and other investment securities are deductible at full market value of the security.
• No capital gains taxes are owed by you on the transfer of securities to Merrick, Inc.
• The maximum deduction in any one year is limited to 30% of your adjusted gross income for donations of appreciated property, but any unused deductions can be carried forward for up to five years.

This type of donation can work even if you want to keep the investment. If you donate the stock to Merrick, Inc., and then purchase the same stock in the market, you will end up with the same investment, have a current-year tax deduction, and have eliminated any capital gain.

Planned Donation
If you want to make a donation but need all of your assets now, consider a planned donation. You can make a transfer of assets to Merrick, Inc., some of which can be revoked prior to your death.

You can use the following options for this type of donation:

Bequests
A bequest under your will is often the easiest way to make a donation. A bequest can be written for an exact dollar amount, a percentage of your estate, or the residual of your estate after all other specified distributions have been made.

You can direct your donation to Merrick, Inc., as an unrestricted donation or as a donation to be used for one or more areas of interest to you. Not only will you be supporting us, but you also may have the benefit of reducing estate taxes.

Retirement Plan Assets
You can name Merrick, Inc., as the beneficiary of a retirement plan - an IRS, 401(k), 403(b), or profit sharing plan. Unlike many assets, qualified retirement plan assets are potentially subject to both income and estate taxes. By naming Merrick, Inc., as the beneficiary, both income and estate taxes can be avoided.

Life Insurance
You can name Merrick, Inc., as the owner and beneficiary of a paid-up life insurance policy or of a life insurance policy for which you are still making premium payments. You would be entitled to receive an income tax deduction for the current cash value of the policy. Any premium payments you make after the policy is donated can also be deducted.

Life Income
If you want to make a donation but need the income from your assets now, consider a life income donation. You can make an irrevocable transfer of assets to Merrick, Inc., and, in return, one or two specified people (i.e., you, your spouse, children, or friends) can receive lifetime annual payments.

Upon the death of the income recipient(s), the remaining assets are used by us for the charitable purposes you define. Upon making the transfer, you receive a current income tax deduction for the remainder value of the donation. Appreciated securities are excellent assets for life income donations.

You can use the following options for a life income donation.

Charitable Remainder Trust
You transfer cash or other property to a trust you create that pays the income recipient either a variable income equal to a fixed percentage of the trust's fair market value as determined each year (unitrust), or a fixed annual amount (annuity trust).

Charitable Gift Annuity
You donate cash or other property to us in exchange for a commitment to pay you and/or someone you designate a specified annual amount for the remainder of the income recipient's life.

Pooled Income Fund
You donate cash or other property to us to be added to a "Pooled Income Fund" that combines donations from many donors to create common investment portfolios. In return, we pay your proportionate share of the net income from the fund to your named recipients.

These donations can offer significant tax advantages, and we can work with you and your advisors to help find an option that works best for you.

Disclaimer: Merrick, Inc., is not a tax expert, and the information contained herein is not to be considered as tax advice. Before you make any decisions in this area, we strongly encourage you to consult your financial manager and/or tax advisor.