Tax Benefits 
• The federal tax laws encourage charitable gifts of life insurance by providing income and estate tax deductions. If you were to give FDA a paid-up policy, your income tax deduction would equal to either the replacement value of the policy or your tax basis (premiums paid), whichever is less. Your estate taxes will also be lower because your estate is reduced by the value of the policy. 

• If premiums remain to be paid, the deduction is then going to equal either the interpolated terminal reserve value (cash value) plus the proportionate part of the gross premium last paid, or your tax basis, whichever is less. You may continue to pay the premiums directly to your insurer; if you do, you will be entitled to a charitable contribution (in the amount of these payments) up to 30 percent of your adjusted gross income. That's because IRS will view your gift as being “for the use of” the charity, rather than being “given to” the charity.
• You may nameFDA as beneficiary of the policy. Such designations are not irrevocable, so you will not be entitled to an income tax deduction. At your death, however, your executor can take a federal estate tax deduction for the entire amount of the gifted proceeds that would have been included in your estate.
• If your employer provides a group term life insurance policy and you feel you no longer need the protection it provides, you might consider making The FDA the beneficiary. Under current tax law, you must include the policy premiums in your annual income to the extent they are used to purchase more than $50,000 in insurance (if you do not contribute the premiums). If you donate the policy toFDA, you no longer have to report such amounts as income. There is no income tax deduction in this instance; however, the proceeds of the policy are removed from your taxable estate at your death.

How to donate life insurance: 
Paid-up policies. You may have a life insurance policy that is no longer needed. You can name the hospital foundation of your choice as the beneficiary and transfer ownership of the policy. Your charitable deduction would be about equal to the policy cash value.

Not yet paid up policies. Your charitable deduction is the approximate cash value and future premium payments on the policy. FDA may consider picking up the payments after discussing the gift with the donor. The minimum face value of the policy in such a case would need to be US$5,000.

Purchase a new policy to guarantee a pledge.

A policy benefiting The FDA but keeping access to the policy's cash value. This is accomplished by simply naming FDA as the beneficiary of the policy. You maintain ownership and access to the policy's cash value. The best language for the beneficiary designation is "The Foundation for Democracy in Africa."  For further information, please contact comments@democracy-africa.org

Real Estate

Making a gift of real estate to The Foundation for Democracy in Africa (FDA) may afford you certain financial benefits. Please consult with your financial advisor on your personal circumstances.

In order to initiate the process, you must first obtain an independent, qualified appraisal of the property. The value of the property should be at least US$25,000 (or US$10,000 for undeveloped land) if you wish to make an outright gift to FDA. If you are interested in funding a charitable remainder trust, the property should be valued at a minimum of US$100,000.

If you believe that a gift of real estate could benefit you and FDA, please contact our office at comments@democracy-africa.org

Each year, many of The Foundation for Democracy in Africa (FDA) members and friends designate a portion of their assets in their estate plan to benefit FDA. Bequests made through wills or living trusts play an important role in securing the future of FDA's programs by building the Permanent Fund. These commitments also enable individuals to make gifts that may not have been possible during their lifetimes.

Bequests can take various forms: 
A specific bequest directs that  FDA receive a specific piece of property: “I give...1000 shares of my ABC stock”. A residual bequest designates in its entirety or a portion of whatever remains after all debts, taxes, and expenses have been accounted and paid: “I give...75 percent of the next residue and remainder of my estate”. Contingent bequests take effect only when certain conditions have been met with: “In the event that my spouse does not survive me, I give to FDA, the sum of...” 

To request more information on charitable bequests, please contact us at comments@democracy-africa.org

Tangible Personal Property

Gifts of tangible personal property such as jewelry or artwork are given careful consideration on a case-by-case basis.

The Foundation for Democracy in Africa (FDA)'s general guidelines specify that gifts of jewelry be worth at least US$10,000 and that gifts of artwork be valued at a minimum of US$25,000. Gifts must also be accompanied by a qualified appraisal, photograph, and supporting materials such as authentication papers.

If you are interested in making a gift of tangible personal property, please contact us at comments@democracy-africa.org

Donor Advised Funds

The Foundation for Democracy in Africa (FDA) Donor Advised Fund (DAF) is a convenient way for you to simplify your charitable giving and take advantage of tax savings at the same time.

A FDA-DAF is an investment account earmarked exclusively for charitable giving that provides you with the opportunity to make grant recommendations to The FDA and your other preferred charities when it's convenient for you. In many ways, establishing a DAF is like having your own foundation to support the causes you believe in, but without the hassles and paperwork that go along with operating one. 
DAFs may be established by individuals or by Foundation-affiliated groups and offer these benefits: 
• Support to FDA and other preferred charities. 
• Immediate tax benefits. 
• Professional asset management. 
• Flexibility to make grant recommendations on your timetable. 
• Easy record keeping and tax reporting. 
• Online access to all aspects of managing the DAF accounts. 
• Donor recognition.

To learn more: 
Contact FDA at comments@democracy-africa.org

Life Income Agreements

Have you ever thought about making a contribution to The Foundation for Democracy in Africa (FDA) during your lifetime but were concerned about outliving your resources, meeting family obligations, or planning for retirement?

With careful planning, it is possible to enjoy the advantages of a life income gift as listed below and turn appreciated assets into an income for yourself or others. Life income agreements may be one way for you to make a significant charitable contribution during your lifetime while furthering your financial plans and security.

Benefits to you: 
• Annual income for you and/or another beneficiary 
• An immediate federal income tax deduction. 
• Potential estate tax savings. 
• Increased income from low-yielding assets. 
• Avoidance or reduction of capital gains taxes on gifts of appreciated assets. 
• The opportunity to be recognized as a Major Donor to FDA. 
• Satisfaction in knowing that your contribution will make a difference in many lives and affect the development of Africa.

For further information, please contact comments@democracy-africa.org.