Lovers of Nevis:
Change is occurring rapidly on this tiny island. Wetlands and rainforest are being converted to development parcels, historic sugar estates are falling into ruin, scenic views are being disrupted. Now, more than ever, there is a need for private individuals to come forward to help protect those attributes which make Nevis special. For more than two decades, the Nevis Historical and Conservation Society has been in the forefront of heritage protection in this community, relying heavily on a small, energetic staff and dedicated volunteers. Now, with the rapidly increasing pace of development, the challenge has expanded.
The Nevis Historical Society and the Nevkit Foundation can assist you in making a gift to support the work of the Society while also obtaining a tax advantage in the U.S.
Cash donations made through The Nevkit Foundation to the NHCS are always appreciated and gratefully accepted. However, many of us wish to donate more but prefer to retain control of our assets while living.
The Nevkit Foundation is prepared to help you.
Gifts made by check are immediate. All checks should be made payable to The Nevkit Foundation. Instructions should indicate whether they are designated as a simple donation or for the NHCS endowment. All cash gifts may be reported on tax returns for that year, if you itemize your deductions.
A bequest is the usual method of providing future assistance for a charitable organization. A designated sum in a will is the most common method used. For example, a general bequest of $10,000 to The Nevkit Foundation on behalf of the NHCS would be considered a primary charge against the estate. A bequest may be made by a codicil to an existing will rather than by preparing an entirely new will.
An alternative bequest may be a percentage of the total estate. Such a bequest ensures that inflation will not reduce the value of the donation.
A specific item, such as shares of stock, may be left to The Nevkit Foundation. US Savings bonds are also a good choice for donation, as they may be subject to heavy taxation unless specifically passed to a charity. One approach is to place them in a trust to benefit the NHCS through The Nevkit Foundation.
Money or other property may be placed in a trust, and the trustee instructed to pay the donor or another person income, usually for life and based on a percentage of the value of the trust. The percentage may change from time to time. The remainder can be passed to The Nevkit Foundation, resulting in a charitable deduction. The trust may be structured to avoid capital gains, gift tax and estate tax savings, among other things. An attorney can provide advice on other ways a Unitrust may be able to save taxes as well as provide a charitable donation to the Nevkit Foundation.
An unneeded insurance policy may also be donated to the NHCS by naming the Nevkit Foundation as beneficiary. All future premiums on a policy donated to Nevkit are tax deductible.
A bequest of securities which have significantly increased in value is an excellent way to receive a charitable deduction as well as avoid a capital gains tax on the increased value. The NHCS will receive the full value of the securities. A broker can provide a Transfer on Death (TOD) form to simplify the donation.
A gift of annuities is especially helpful when a donor is locked into appreciated securities which yield a low dividend payout. Rather than sell the securities and be subject to a capital gains tax on the profit, the securities may be donated for a full value charitable deduction and a lifetime annuity retained by the donor. An attorney familiar with annuities and their tax consequences can assist with such an arrangement.
Many people are not aware that should they die leaving funds in such plans, the tax consequences can be serious -as much as 70% may be taken by taxes. All taxes can be avoided by instructing the custodian of the account to make The Nevkit Foundation the death beneficiary. There are other ways to save by using a trust arrangement or requesting heirs to disclaim the proceeds.
For a donation of real estate, the tax savings to the donor are virtually identical to those of securities which have increased in value. The estate will pay no capital gains tax on the property but will have a charitable deduction for the fair value of the property upon its sale.
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General comments
Donations may be made to the NHCS Endowment Fund, the day-to-day operations of the society, or a special fund. If no instruction is given, gifts will go in total to the NHCS Endowment Fund. Sample bequests follow:
I give...( the sum of __ dollars), or (___ shares of stock in ___ corporation), or ( __% of the residue of my estate), to The Nevkit Foundation in the island of Nevis, to be used for the Endowment Fund of The Nevis Historical and Conservation Society.
I hereby instruct my executor to sell my real estate located at ____, and give the net proceeds to The Nevkit Foundation, located in the island of Nevis, to be used for the Endowment Fund of the Nevis Historical and Conservation Society.
Tax rules constantly change and consultation with a trained professional in this field is a requirement for taking full advantage of a donation, and preparing adequate documentation to survive IRS review.The Nevkit Foundation will assist in advising donors in every way possible, but is not qualified to give tax advice.
Please be assured that whatever the amount, or how it is made, your gift will be most deeply appreciated.
The Nevis Historical and Conservation Society
Phone: 869-469-5786 Fax:869-469-0274
Email: nhcs@sisterisles.kn
The Nevkit Foundation
P.O. Box 484
Charlestown , Nevis 00109
Eastern Caribbean
