DAN Development
Ways to Give to DAN

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There are numerous ways that you can make a gift in support of DAN. Everything from simply writing a check, giving stock or other appreciated assets, or a planned gift. The numerous options available are divided between outright gifts and planned gifts.

Outright Gift Options Tax Benefits from Charitable Gifts Planned Gift Options

Outright Gift Options

Gifts of Cash
Gifts of cash are the easiest and most direct way to make a gift to DAN. Cash gifts can be provided for unrestricted or programmatic support or become part of the DAN Endowment.

Cash gifts can be made by the simple act of writing a check made payable to DAN. Another option would be providing a gift through your will/living trust in the form of a cash bequest.

Please include a note telling us which program(s) you want to support with your gift. You can designate your gift for the unrestricted fund (general fund), for a particular program, or for the DAN Endowment. Your charitable deduction will be the value of the gift you make.

You can also use your credit card to make an online gift to DAN. Just follow the directions on the form and see how easy it is to make your gift.

For more information regarding gifts of cash, please call the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Gifts of Securities
Using appreciated securities (stock and bonds) is a popular method of making a gift. A gift of appreciated securities provides a double tax savings: you can deduct the average of the high/low value of the securities on the date of the gift and totally avoid capital gains on the appreciation.

A gift of appreciated securities, held for more than one year, entitles you to a charitable income tax deduction in the year you complete the gift. You can use the deduction to offset up to 30% of your adjusted gross income. Any deduction exceeding the 30% limit is carried forward for up to five additional years. You may also deduct donated securities you have held for less than one year, but your deduction will typically be based on what you paid for the securities.

For more information on how to transfer securities, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Gifts-In-Kind
Donors may wish to give gifts of property such as equipment or dive excursions to DAN. This can entitle the company to an income tax deduction.

To learn more about donating gifts-in-kind, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Gifts of Real Estate
A gift of real estate can include a gift of a principal or vacation residence, farm, timberland, commercial building, or unimproved land. Gifts of real estate entitle you to the same tax benefits as gifts of appreciated securities, provided you have owned the real estate for more than one year and there are no liens on the property. The donor is entitled to a charitable income tax deduction of the full fair market value of the real estate, valued at the time of the gift. Additionally, the donor will avoid capital gains tax on the transfer. Gifts of real estate can also generate substantial estate tax savings by removing a high-value asset from your estate. Appreciated real property is also an excellent asset to use to establish a charitable remainder trust.

Since your home or property may be your most valuable asset, you may want to consider a gift of a remainder interest in your property instead of an outright gift. A gift of a remainder interest allows you to continue to enjoy your home for your lifetime, and the lifetime of your spouse, while providing a current charitable income tax deduction and potentially lower estate tax costs. See the retained life estate topic under deferred gifts.

Because the ability to market the property is a major consideration in DAN’s acceptance of a gift of real estate, we invite you or your advisor to call us to discuss such a transfer.

To discuss a potential gift of real estate, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Gifts of Life Insurance
Naming DAN as owner and irrevocable beneficiary of the policy will generate an income tax deduction for the donor. The charitable deduction will depend on several factors including what, if any, premiums are still to be paid. This can be a cost efficient way to provide a significant gift in support of DAN.

You may also designate DAN as the beneficiary of your group term life insurance through your employer. This method of giving will not generate a current income tax deduction, but it will remove the value of the insurance from your estate. Your human resources division can assist you with making such a designation on your group term policy.

Please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message to discuss various options.

Matching Gifts
An excellent way to leverage your gift to DAN is to ask your human resources department if your employer will match your gift through their matching gift program. By following the guidelines established by your employer, your gift could be doubled or even more. This benefit is often available to the spouse of the employee as well as to retirees and board members.

Gift credit is given to both the donor and the company when a matching gift is received. These gifts are also factored into the calculation for the donor's placement in giving levels.

For more information, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Honorary or Memorial Gifts
A gift made in memory, or in honor, of a family member or friend is a generous way to memorialize the individual's life, accomplishments and/or association with scuba diving or with DAN.

The DAN Office of Development notifies the honoree, or their family, of the names and the addresses of those making the gift. Please forward with your gift the name of the person being honored and their address or that of their next of kin if possible.

For more information, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.


Planned Gift Options

A planned gift requires careful consideration of the financial, personal, and charitable objectives of the donor and frequently involves input from financial and legal advisors. Many planned gifts are outright gifts. Other planned gifts are deferred where the donor retains some level of control over the assets for either one or more lifetimes or a term of years. A life income gift, such as a charitable gift annuity or a charitable remainder trust, pays income to the named beneficiary for life or a term of years. Only after the life income terminates are the funds available to DAN for the purpose designated by the donor. The reserve of the life income gift is the charitable lead trust which provides income to DAN for a period of time and then the trust assets revert to the donor or other beneficiary.

Each of the gift options listed below provide the donor with various advantages depending on the type of gift and the assets used to fund the gift. Possible benefits may include:

  • the ability to totally designate how the gift will be used at DAN;
  • Heritage Society membership;
  • income tax deduction or avoidance;
  • preferential capital gains tax treatment;
  • income for life or a term of years;
  • removal of the value of the asset from your taxable estate;
  • reduction in estate and gift taxes; and
  • personal satisfaction of making a gift in support of DAN.

For more information on making a planned gift, and the benefits you and your family might enjoy, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Bequests from Wills or Living Trusts
A bequest is the easiest and most common form of planned giving. You may make provisions for DAN in your will or living trust by designating either a specific dollar amount or a percentage of your estate. By so doing, you:

  • may change the amount and natures of your gift in support of DAN anytime prior to your passing;
  • can direct how your bequest be used;
  • retain control over the assets for the duration of your life;
  • can delay the gift to DAN until after the occurrence of a specific event such as the death of your spouse;
  • may provide for the care of your loved ones before DAN receives any portion of your estate.

Bequests under your will or living trust provide estate tax relief to your estate and may enable you to provide larger benefits to your loved ones, since charitable gifts are not taxable.

Please consider sharing your plans to benefit DAN via your will or living trust with us. Doing so allows us the opportunity to express our appreciation for your support and qualifies you for membership in the Heritage Society.

We will be glad to assist your estate planning advisors by providing the appropriate name and language to assure that your gift will be used according to your wishes. If you are planning to make a bequest to DAN, the following language may be helpful to you and your legal advisor:

Unrestricted Bequest:
"I give to Divers Alert Network of Durham, North Carolina, the sum of ____ {OR ______ percent of my estate, OR the following property _____, OR the remainder of my estate}. This gift may be used for the general enhancement of DAN (OR you may designate a particular program}".

Endowed Bequest:
"I give to Divers Alert Network of Durham, North Carolina the sum of $_____, {OR _____percent of my estate, OR the following property _____, OR the remainder of my estate}. The gift shall be known forever as The _____ Fund. The income from this gift, but not the principal, shall be used to support Divers Alert Network and its programs. The principal of this endowed fund may be merged with other investment assets of Divers Alert Network and shall be subject to the income and spending policies of Divers Alert Network."

For assistance, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Life Insurance
Life insurance may be used in several ways to make a gift in support of Divers Alert Network by assigning the ownership to DAN. The charitable deduction for gifts of life insurance depends on the type of policy, the status of the premiums and ownership of the policy.

Naming Divers Alert Network as owner and the irrevocable beneficiary of the policy will generate an income tax deduction for the donor. Paid-up policies will generally result in an income tax deduction equal to the cash surrender value of the policy.

For policies with premiums remaining to be paid, the deduction is approximately equal to the cash surrender value plus a portion of the last premium payment. When you make future premium payments, you can also receive an income tax deduction for them.

You may also designate Divers Alert Network as the beneficiary of your group term life insurance through your employer. This method of giving will not generate a current income tax deduction, but it will remove the value of the insurance from your estate. Your human resources division can assist you with making such a designation on your group term policy.

If you prefer to retain ownership of the policy, you can name Divers Alert Network as the beneficiary and the value of the policy will not be taxable in your estate. In this case, there will not be any current income tax deduction.

For further information, please contact the DAN Office of Development at +1-919-684-2948 x444/x445 or send a message.

Life Income Gifts
Life income gifts involve the irrevocable transfer of assets in exchange for income for life (or a term of years in some cases) for one or more beneficiaries. Only after the passing of the last beneficiary are the remaining proceeds used for the purpose the donor designated. There are two types of charitable remainder trusts (the annuity trust and the unitrust) and two types of charitable gift annuities (one with payments that start now and a deferred option with payments starting in the future). All of these gifts share several common characteristics:

  • an immediate income tax deduction for the remainder value of the gift;
  • estate tax savings;
  • income for life or a terms of years;
  • relief or total avoidance of capital gains tax on the transfer;
  • the satisfaction of making a significant gift in support of Divers Alert Network.

For more information, or a personalized projection of the benefits you or your family could receive from a life income gift, please contact your investment counselor or attorney.

Charitable Remainder Trusts
This type of irrevocable gifts can provide significant future support to Divers Alert Network while potentially increasing the income of the beneficiary or beneficiaries. Payments will be made to the beneficary(ies) for either their lifetimes or for a term of years (20 is the maximum allowed by law). The donor directs how the charity or charities named will use the ultimate proceeds. Only at the conclusion of the trust is DAN able to use any of the gift for the intended purpose. There are two types of charitable remainder trusts-the annuity trust and the unitrust.

The Annuity Trust
If you would prefer to receive constant payments from your life income gift, you might consider a charitable remainder annuity trust. Like a charitable remainder unitrust, the annuity trust provides the donor with capital gains tax avoidance, immediate income tax deduction and the ability to designate how the funds will ultimately be used by DAN. However, unlike the unitrust, the payment from an annuity trust is based on a percentage of the market value of the trust assets at the time it is funded and the payment amount never changes. Additions to the annuity trust are not allowed

The Unitrust
If your goal is to provide an income stream to yourself, your spouse or other beneficiaries and provide a hedge against inflation, then you should consider a charitable remainder unitrust. This type of charitable trust allows you to make additions to the trust principal at any time, and pays income based on a fixed percentage of the trust assets as valued each year. As the value of the trust increases, you share in that appreciation by receiving a larger income distribution.

This type of trust can be funded with cash, securities, real estate or other personal property. The donor totally avoids capital gains tax on the transfer to the trust, thereby leaving the entire value of the gift available to be reinvested to benefit the named life beneficiary. The assets placed in the trust will not be taxable in the donor's estate as long as the beneficiaries are limited to the donor or the donor and their spouse.

Testamentary Life Income Options
You may establish a charitable lead trust or a charitable gift annuity through your will. Because it does not come into existence until after your death, it will not provide any income tax savings during your lifetime. However, it will provide income for a spouse or other loved one for their lifetime and will reduce your exposure to estate taxes.

Charitable Lead Trusts
The charitable lead trust is essentially the reverse of a charitable remainder trust. Rather than receiving the trust's remainder value, DAN will receive the trust's income for a specified period of time. At the conclusion of the trust, the property either reverts to the donor or to a non-charitable beneficiary designated by the donor. Established during the donor's lifetime or through a will, charitable lead trusts are best for donors who can forego the income generated by the property for the trust's period of existence. The tax benefits for this type of a trust are complicated but can be highly beneficial depending on the tax situation of the donor and his/her family.

Retained Life Estates
A provision of the tax law allows you to give your personal residence or farm to DAN and allow you, and your spouse or other beneficiary, to continue to live there for life. During you and your beneficiary's lifetimes, you retain the full use of the property and continue to pay all expenses related to the property. At the death of the survivor, the property passes to DAN.

In addition, your vacation or second home qualifies for this treatment as long as it is used as a personal residence and not a rental property. The immediate charitable deduction allowed for this future gift is the present value of our right to receive the property at some later time. This present value, and the resulting charitable deduction, is determined, primarily, by the age of the life tenants. If the lifetime enjoyment of the property is limited to the donor and his/her spouse, the property will not be taxed in either estate.

Retirement Plan Gifts
Frequently, people reach retirement age with significant wealth accumulation in retirement plan accounts. Unfortunately, assets in these types of plans are included in the owner's taxable estate at death and can be subject to as much as 70% combined estate and income taxes.

Rather than see such a large percentage of your remaining retirement assets eaten up by taxes, you might consider directing that part or all of these excess retirement assets be used to make charitable gifts. While the value of these accounts is still included in your taxable estate, your estate will receive a full charitable deduction for all gifts designated to charity.

Tax Benefits from Charitable Gifts

Your charitable gifts to Divers Alert Network can have a significant impact on your annual or estate tax obligations. We urge you to contact your attorney or financial advisor regarding the tax benefits of giving to Divers Alert Network.