Indeed, the power of a community foundation is that there is something for everyone, and collectively, no matter how you choose to give or at what level, you will be doing something special for humanity.
We offer a wide range of gifting options and vehicles that you can use to establish or add to a named charitable fund. Since we are recognized by the Internal Revenue Service as a public charity, donors are provided with the maximum tax benefits allowed by law.
We encourage you to work with your lawyer or financial advisor as you consider your charitable giving options. In addition, we are happy to work with you and your advisor in this process and discuss these opportunities in person. You may choose to make a donation today to see the impact of your gift. You may choose to make a donation after your lifetime to ensure your favorite causes are supported. You may choose to do both.
A simple way to make a donation, cash gifts are fully deductible up to 50 percent of the donor’s adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.
Stocks, Bonds and Mutual Funds
Gifts of appreciated stocks, bonds and mutual funds often provide important tax advantages. If held for more than one year, their fair market value is deductible as a charitable contribution up to 30 percent of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years. An added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift.
Life insurance policies also can be used as charitable gifts. By naming the Community Foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction for the policy’s cash value. If you are still making premium payments to keep the policy current, they may also qualify for a deduction. You may also keep ownership of the insurance policy and name the Community Foundation and/or a fund as the beneficiary (see below).
Closely Held Stock
Donating the closely held stock of your business to the Community Foundation offers you a charitable deduction for the appraised fair market value and an avoidance of capital gains tax.
Whether it is a home, building or land, we can help you turn this asset into a charitable gift. If held for more than one year, real estate usually provides the same tax benefits as gifts of securities.
Consider naming the Community Foundation to receive all or a portion of your estate through your will. In doing so, you may reduce estate taxes while supporting your community. You may stipulate a specific amount or a percentage of your estate, or name a specific asset.
Double taxation on retirement plan withdrawals could decrease the value of the asset for your heirs. By naming the Community Foundation as the beneficiary of your retirement funds, you can avoid taxes and preserve your hard-earned assets for the good of your community forever.
Perhaps you would like to contribute the proceeds of a life insurance policy to help the community, but you are not yet ready to give up ownership of the policy. By naming the Community Foundation as beneficiary, you retain ownership of the policy and have access to the cash value as well as the right to change the beneficiary. This enables you to make a contribution that may not have been possible otherwise.
Charitable Remainder Trusts
Cash or property is transferred to the trust. You or a designated person annually receive an amount equal to a fixed percentage or dollar amount of the trust’s fair market value. Upon termination of the trust, the assets are transferred to a charitable fund at the Community Foundation to support your charitable giving goals.
Charitable Lead Trusts
Cash or property is transferred to a trust. A percentage of the trust’s value is paid to a charitable fund at the Community Foundation for a designated number of years. At the end of the trust term, the trust’s assets are passed to your heirs. Although there is no income tax deduction when you create a charitable lead trust, your gift or estate tax is reduced and any growth is passed to your heirs gift and estate tax free. At the same time, you fulfill your charitable goals.