December 20, 1999

ON A SPECIAL WAY OF GIVING AT A SPECIAL TIME OF YEAR

In a famous work, Charles Dickens wrote that this time of year, what's commonly known as the holiday season, is ". . . a good time, a kind, forgiving, charitable, pleasant time. The only time I know of in the long calendar of the year when men and women seem by one consent to open their shut-up hearts freely, and to think of others as if they really were fellow-passengers in life, and not another race of creatures bound on other journeys."

As beautifully expressed as it is, I'd amend that sentiment slightly to suggest that the spirit that manifests itself at holiday time, the awareness of our common humanity and the debt of good fellowship we all owe each other, is felt quite intensely at this time of year but in fact is manifested at other points on the calendar.

Certainly it's expressed at Telethon time or any other time when a caring person extends a helping hand to MDA out of concern for families and children fighting neuromuscular diseases, either through a gift of funds or a gift of time given through volunteer service.

In fact, the existence of our organization is predicated on the notion of our common humanity -- a notion expressed in another way by the poet John Donne when he wrote: "No man is an island, entire of itself."

We're grateful for and acknowledge those who've continued to support our work over the years, who've allowed us to provide caring medical support through our hospital-affiliated MDA clinics, who've helped us put smiles on the faces of youngsters at MDA summer camp, and who've helped us achieve research breakthroughs that give real hope to families fighting progressive and often fatal neuromuscular diseases.

In the year 2000, as we press forward with our quest to find treatments and cures and stop neuromuscular diseases once and for all, support from charitable donors will be more important to MDA than ever before.

In recent years, many people who regularly give to help charitable organizations have benefited from historic gains in the stock market. For those who've been lucky enough to have reaped the rewards of our booming economy, there's a very smart way to give to help others: donating appreciated securities. This means donating an investment such as stock, bond or mutual fund shares that have been owned for over a year and which have gone up in value. Real estate can also be used to make this kind of gift.

There are some very real advantages to making this kind of gift, both to the giver and to the recipient. The key is that the donor should hand over ownership of the asset itself, not sell it first and then donate the funds realized from the sale.

In either case, a charitable gift will entitle the giver to deduct the gift amount from the adjusted gross income portion of his income tax return on April 15. This kind of benefit can be particularly helpful if the donor's income has risen and he wants to prevent himself from being bumped into a higher tax bracket.

However, if the donor sells the security before donating the proceeds, he'll be liable for a capital gains tax up to 20 percent of the amount the asset has risen in value. This can effectively nullify much of the tax benefit derived from deducting the gift amount.

By giving the asset outright, the donor avoids the capital gains tax bite. Assuming the asset has gone up in value and has been held for over a year and that the donor will itemize his taxes, the donor is still entitled to deduct the full market value while bypassing the capital gains tax, no matter how much the investment has grown.

If you're interested in making this kind of smart gift to MDA, talk to your financial adviser or call Fred Stecker, director of MDA's Planned Giving Program, at (800) 572-1717. MDA can provide helpful information about the wisdom of including philanthropic giving in your financial planning.

Remember, to enjoy the tax benefits in the coming year of giving an appreciated asset, you have to make the gift by Dec. 31.

Whether you choose to help MDA in this way or are a friend who's given support at other times, we're deeply grateful. Truly, we are fellow passengers in life. When we arrive at the goals we've long strived for and finally defeat the muscular dystrophies and related diseases, that accomplishment will serve as a testament to the humanity and compassion of those who've faithfully supported our cause.

Happy holidays to you and yours from all of us at MDA.

With every best wish . . .

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