DONATING YOUR SAVINGS BONDS
Many friends own U.S. savings bonds and may wish to donate those bonds to help fund our mission. Please consult with a tax advisor before taking any action.
GIFTS DURING LIFETIME
U.S. Treasury regulations restrict the reissue of savings bonds. Therefore, we do not recommend that you reissue your savings bonds in KFHfL’s name.
The best way during lifetime to make a gift to KFHfL using savings bonds is to cash them in and use the proceeds to make the gift. Unfortunately, any accumulated interest will be immediately taxable to you. If you use the proceeds to make a gift to KFHfL, you will receive a charitable income tax deduction which would offset some or all of the tax due on the bonds. Again, please consult with your tax advisor for more information.
GIFTS AFTER DEATH
Savings bonds, like IRAs and commercial annuities, are considered “bad” assets because any untaxed income will be taxable to your heirs. But Treasury regulations prohibit naming KFHfL as a co-owner or death beneficiary of your savings bonds. However, you can make a specific bequest of your savings bonds in your will or trust. For example, the bequest might read: “I instruct that all my U.S. savings bonds pass to the Kendrick Fincher Memorial Foundation.”
Savings bonds that are specifically bequeathed to KFHfL will avoid income tax and will also qualify for an estate tax charitable deduction. This makes savings bonds ideal for funding a gift to KFHfL after death, more so than during lifetime.
You may also be able to use savings bonds, savings accounts, money market funds, or CD’s to fund other gift arrangements after death that can provide income to family members.