Gifts of Savings Bonds

The tax benefits of giving savings bonds to Bethesda may allow you to do more for our future than you thought possible.

What are the benefits of giving savings bonds?

You can erase all taxes on savings bonds at death by changing your will or revocable living trust to specifically* leave bonds for Bethesda's benefit. Savings bonds that Bethesda receives pass 100% free of estate taxes and, as a tax-exempt organization, we owe absolutely no income taxes on the bonds.

In other words, every dollar we receive from redeeming the bonds can be used for our programs, in contrast to the shrunken after-tax amount that would be available to other beneficiaries.

Is special planning necessary?

Yes. It is not possible, under Treasury regulations, to name charitable organizations as either joint owners or death beneficiaries of savings bonds. But bonds can be left to us in a will or through a revocable living trust, so long as the bonds do not have a surviving joint owner or death beneficiary.

*Caution: It is vital, for tax reasons, that you specifically identify savings bonds as an asset that you are leaving to us, rather than bequeath a dollar amount and expect that your executor will make payment from the proceeds of cashing some bonds.

 

Who can I contact about giving gifts of savings bonds?

For questions and/or assistance, please contact one of our development representatives. You can also request printed materials online.