Matthew T. Szramoski, 33°
Director of Development
Saving money and gaining income is something most of us would enjoy. Did you know you
can do that as well as benefit any of our Supreme Council or Orient 501(c) charities?
Many of us have an unused piece of
property that we own. We continue to
pay taxes on an annual basis and if the
property has a residence or commercial
In many cases, while incurring expenses the owner is
not gaining any income.
Did you know that you can
donate a property to the Scottish Rite Foundation, SJ, USA,
and get a significant tax deduction? One
of the biggest advantages to the donor is
that the size of the tax deduction is determined by the current market value of
the property, as opposed to the purchase
price of the property.
Generally, the following rules apply
if the donated real property is owned
in your own name, with your spouse or
1. If you have held the property for more
than one year, it is classified as long-term capital gain.
2. You can deduct the full fair market
value of the donated property. Your
charitable contribution deduction
is limited to various percentages of
your adjusted gross income (Check
with your tax advisor).
3. Excess contribution value may
be carried forward for up to five
years. If the property has been
depreciated, the fair market value
must be reduced by its accumulated
depreciation through the date of
4. The fair market value is usually
determined by an appraiser.
5. If you choose to deduct your cost
basis of the donated property, then
you are allowed a deduction of fifty
percent (50%) of your adjusted
Selling appreciated stocks
or securities can offer several
challenges including paying
significant capital gains taxes.
You may want to consider donating your appreciated securities to save on taxes:
1. Any long-term appreciated securities
with unrealized gains (meaning they
were purchased over a year ago, and
have a current value greater than
their original cost) may be donated
to a Scottish Rite charity and the
donor may take a tax deduction
for the full fair market value of the
securities up to 30% of the donor’s
adjusted gross income.
2. This means rather than losing a large
amount in taxes, you can contribute
the full value of the securities to the
charity and get a large tax deduction.
3. That unused property or appreciated
stock can be placed in a Charitable
Gift Annuity (CGA).
A charitable gift annuity is a contract
under which a charity, in return for a
transfer of cash or other property, agrees
to pay a fixed sum of money for a period
measured by one or t wo lives. The person
who contributes an asset for the annu-
ity is called the “donor”, and the person
who receives payments is called the “an-
nuitant” or “beneficiary.” Usually, the an-
nuitant is also the donor, but this is not
always true. The maximum number of
annuitants is two, and payments can be
made to them jointly or successively.
Payments from a charitable gift annuity are fixed from the beginning. They
will neither increase nor decrease whatever happens to interest rates or the stock
market! The Scottish Rite Foundation,
Southern Jurisdiction, USA, Inc. or the
House of the Temple Historic Preservation Foundation, Inc. are contractually
obligated to make the payments.
A portion of the payments is considered to be a partial tax-free return of the
donor’s gift. The contributed property
becomes a part of the charity’s assets.
The donor has the ability to name a local
Scottish Rite Foundation as the remainder beneficiary of the charitable gift annuity or one of the Supreme Council
For more information on donating
property or appreciated securities or
making a Charitable Gift Annuity, please
contact Matthew Szramoski, 33°, Director of Development at mszramoski@
scottishrite.org or 202–777–3177.
Turning Unused Property or Appreciated Stock
into Supporting Charity and Benefitting Yourself Financially!