Local Resident Benefits Hometown and Lessens Taxable Income 

“The tax benefits today and the fixed income for my lifetime from the charitable gift annuity with the Nebraska Community Foundation are real attractive as I am living on a dividend income from my investments.”

    --Doris Miller

Doris Miller was born in the Shenandoah Valley of Virginia and grew up during the Depression. She moved to Stuart with her father and has adopted Stuart as her hometown. She enjoys the quality of life offered in Stuart, from the peace of mind provided by the volunteer fire fighters to the enjoyment of visits to the local White Horse Museum to the quality of care residents receive at the Parkside Manor in Stuart.

While reviewing her Form 1040 with her tax and investment advisor, Scott Kaup, Doris learned that her taxable income would increase unless she took some action. 

“Doris had used up all the available charitable deductions from her first gift annuity with the Nebraska Community Foundation. In order for her to minimize her taxes, I recommended to her that she consider making a gift in the following year for another gift annuity,” explained Kaup.

“In my opinion, the charitable gift annuity is the perfect fit to give Doris tax savings, increase her income and satisfy her desire to give something back to Stuart. When Doris combines the tax savings and the increased income from the gift annuity this becomes one of the absolute best ways for someone to make a charitable gift, increase their income and save taxes,” shared Kaup.

Another bonus is the additional tax relief Doris will receive from the Nebraska Charitable Endowment  Tax Credit for certain qualifying charitable gifts such as a charitable gift annuity. In order to qualify for the credit the gift must be directed to a permanent endowment with a Nebraska-based charity such as the Stuart Community Foundation, an affiliated fund of the Nebraska Community Foundation.

“An endowment allows Stuart to sustain the quality of life that attracts people to live here, such as our parks, schools, fire department and health care services. In addition, an endowment will allow Stuart to take advantage of future opportunities presented by our participation in the HomeTown Competitiveness

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Utilizing the Nebraska Charitable Endowment Tax Credit, Kathryn Wall made a generous charitable gift to one of her favorite charities with the help of her CPA, Doug Skiles of McCook. 

Kathryn Wall devoted over 30 years of her life to teaching students in various elementary grades in several school districts in southwest Nebraska. She is now retired and living in McCook, Nebraska. Kathryn wanted to make a gift to benefit one of her favorite charities. She turned to her CPA, Doug Skiles of McCook, for advice. An interesting personal note is that Doug is one of her former students.

“The benefits of the Nebraska Charitable Endowment Income Tax credit for qualifying charitable gifts attracted Kathryn’s attention when I shared the good news of the additional tax benefits this credit would provide for her,” related Doug Skiles.

The new tax credit provides a 15% credit, up to a maximum of $5,000, for qualifying irrevocable planned gifts by individual Nebraska taxpayers if the gift is directed to benefit an endowment fund. The legislation allows donors the benefits of both their federal charitable tax deductions and the state charitable endowment tax credit. The tax credit is effective through tax year 2009.

In addition, corporations doing business in Nebraska and paying state corporate taxes are eligible for 10% percent credit up to a maximum of $5,000 annually for outright gifts to endowments.

“Over the years, Kathryn and I have discussed several gifting strategies, including the benefits of a charitable gift annuity. But it wasn’t until she learned of the additional tax credit that she was ready to make a gift to the Nebraska Community Foundation’s Gift Annuity program,” explained Skiles. “This is a very good fit with Kathryn’s situation.”

A charitable gift annuity is a contract between a donor and the Nebraska Community Foundation. The Foundation agrees to pay to the donor a fixed and level amount of income for life. The annuity income can be over a period of one or two lifetimes. A charitable gift annuity provides an attractive current income tax deduction and the Nebraska Charitable Endowment Tax Credit.

“Making a gift to through a gift annuity makes me feel good. I like knowing my annual gifts will continue in the future with the earnings from the endowment that will be established with the gift annuity. Plus the income from the gift annuity gives me peace of mind that I am taking care of myself. When Doug told me about the new tax credit I knew this was the thing for me to do. I hope others consider doing the same thing,” explained Kathryn Wall.

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Jim and Ginger Nissen of Lincoln made a gift that will benefit their hometown of Wayne. Jim grew up on a farm near Wayne, and Ginger moved to Wayne as a high school student. After they married, Jim and Ginger moved to Lincoln, but they continued to stay connected to their hometown. 

A number of years ago, members of the Ley family, including Ginger’s mother, donated their historic home to the Wayne County Historical Society. Today, the 1890’s Rollie Ley mansion serves as the Wayne County Museum. The museum features outstanding turn-of-the-century architecture and artifacts. The Wayne County Historical Society preserves this local treasure through a number of volunteer efforts, including annual fundraisers and other activities.

The Nissens, wishing to provide for the maintenance and enhancement of the Ley Museum, consulted with their tax advisor who suggested a charitable gift annuity through the Nebraska Community Foundation.

The charitable gift annuity allows the Nissens to create a future permanent endowment for maintenance of the museum, receive immediate tax benefits, including Nebraska’s charitable endowment income tax credit,and receive an immediate fixed and level income throughout their lifetime. 

“It seemed appropriate and prudent for Ginger and me to create a fund to endow the future maintenance of the museum, with the additional hope and desire that our gift will motivate others in the spirit of giving and support for the museum,” Jim Nissen said.

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