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Donors and their professional advisors work with us to make gifts of many different types, using various assets. Here are some recent examples:

Gifts of Appreciated Stock

Anita Suarez, a widow who lives in Eugene, holds ABC stock that she purchased for $4000 twenty years ago. The stock has a current value of $100,000 and her investment advisor reminds her that a sale of the stock would trigger significant capital gains tax.

Mrs. Suarez has a long history of giving to charities that serve needy children and the elderly, among other causes. Her average annual giving has been about $10,000 for several years. She sees the opportunity to utilize the ABC stock to establish an advised fund at OCF. An advised fund named for her deceased husband and herself, "The Joseph and Anita Suarez Family Fund," will allow her to initially recommend about $5,000 in grants each year. She has named her children to advise OCF on grants to be made from the fund after she is no longer able to serve as the advisor to the fund.

Mrs. Suarez could use these grants from her OCF advised fund to replace half of her annual giving, but after consulting with her financial planner, she has decided to continue giving $10,000 per year directly to various non-profits from her income and instead utilize the advised fund for especially deserving projects in the community. She plans to ask OCF's assistance in identifying these projects on an on-going basis, although she wants to keep the flexibility to respond to the special needs of her favorite organizations as well.

For transferring the ABC stock to OCF as a gift, Mrs. Suarez receives the full market value of the stock on the date of transfer as a charitable income tax deduction of up to 30% of her adjusted gross income.  She can carry the deduction forward for five additional years if necessary, and the entire capital gains passes tax-free to her fund a OCF.

Establishing a Charitable Remainder Trust

As part of their estate planning, Max Morrow, age 75, wishes to provide supplementary income for himself and his wife Marta, who is 68 years old. At the same time, the Morrows want to provide for perpetual annual gifts to four of their favorite charities in the Medford area after their lives are over.

Donating a parcel of unencumbered land they purchased seven years ago that is currently valued at $200,000, they create a net income charitable remainder unitrust having annual income payments of 6% of the trust value. This gift to establish the trust entitles the Morrows to an income tax charitable deduction that is based on a formula that calculates value of the ultimate gift being made in today's dollars.  The deduction is limited to 30% of their adjusted gross income, with any unused deduction carried forward up to five years.  Most importantly, the gain passes tax-free to the trust. OCF, as the trustee, will make income payments to the Morrows after it sells the property. The Morrows can expect in the first year after the sale to receive about $12,000 from the trust, and the amount may increase annually thereafter. They will continue to receive income payments for the rest of their lives.

When both Mr. and Mrs. Morrow are gone, OCF will establish a designated fund, the "Morrow Fund for Medford's Future", with the final proceeds of the trust. In accordance with their wishes, OCF will make annual distributions from the fund to four Medford area charities named by the Morrows, each in shares designated by them. If any of the organizations goes out of existence or loses their tax exempt status, then OCF will redirect the portion designated to that organization to another organization with a similar mission in the Medford area.

Gift of Family Business

The Wilson family of Portland has been in the office furnishings business for two generations, in a closely held private company. The current president of Wilson Office Furnishings is Frank Wilson, and the vice president of sales is his wife Angie. Frank's brother and two of Frank and Angie's children hold responsible positions in the company, and one of the children will probably succeed Frank as president when he retires.

Frank and Angie feel strongly about the importance of young people being able to attend college. Frank attended Oregon State University and Angie attended Willamette University on full scholarship. They would like to establish a scholarship to be called "The Wilson Office Furnishings Scholarship" for students graduating from any of three local high schools to attend any college located in Oregon. They have designated a selection advisory committee, to be comprised of school officials, community members, and family members in their business.

Since the business has been successful and has the capacity to buy back some of its stock, Frank and Angie give OCF about 10% of their personal holdings to establish the scholarship.  OCF will sell the stock at an appraised fair market value, which will provide an opportunity for the Wilson's children to buy it back at a higher basis, retaining family ownership. The appraised value of the stock is deductible to the Wilsons at the time of transfer, and they incur no capital gains taxes. At the end of 2 years, the scholarship will be fully funded at $500,000, and producing $25,000 in scholarships for deserving students. The Wilsons or their children can add to the scholarship at any time, thus increasing the number or amount of scholarships awarded.