Ways to Give

Types of Assets You can Give to Establish a Fund at the Community Foundation

Just as there are lots of ways you can structure your permanent endowment fund to help the charities and causes you most care about, there are also a variety of assets you can choose to give.

Cash Gifts

Cash and personal checks are the simplest way to give. Cash gifts enable donors to claim a current income tax deduction of up to 50 percent of their adjusted gross income (AGI) in the year of the gift, with a five year carry-forward period.

Publicly Traded Securities & Mutual Funds

Donors receive a double income tax benefit when they give publicly traded securities or mutual funds (i.e. securities for which there is a recognized market such as the NYSE ). Such gifts are deductible at their full market value, and the donor avoids capital gains on the stock's appreciation. Donors can claim a current income tax deduction of up to 30 percent of their adjusted gross income (AGI), with a five-year carry forward, if required.

Closely Held Stock

Proposed gifts of closely held stock are reviewed on a case-by-case basis with the Community Foundation. If accepted, donors are entitled to a deduction for the appraised fair market value of the gift. The deduction can be up to 30 percent of the donor's adjusted gross income (AGI). Capital gains are also avoided.

Retirement Plan Assets

Retirement plan assets (such as IRA's) make excellent charitable gifts. Many professional advisors call retirement assets "tax-cursed" in that although these plans enjoy favorable tax treatment prior to retirement, they are subject to income tax, estate tax, and excess accumulation tax at the death of the plan participant. Thus, in many cases it may be advantageous to leave other assets to heirs and to name their Fund in the Community Foundation as the beneficiary of the retirement plan. In a bequest, the family can avoid both estate tax and income tax if the plan participant makes the plan a gift to charity.

Life Insurance

Gifts of life insurance enable the donors to make a future gift to the Community Foundation at a relatively modest cost. Donors may name the Community Foundation as the owner and beneficiary of existing policies that they no longer need. Donors are entitled to a federal tax deduction for the cash surrender value in the year the gift is made.

Real Estate

Possible real estate gifts include a home, farm or ranch, commercial buildings, or income-producing land. Gifts of real estate may be contributed as outright gifts, as a retained life estate, as a contribution to a charitable remainder trust, or may be gifted to the Community Foundation via bequest. All gifts of real estate will require certain procedural steps, including site visit, environmental assessment, and a qualified appraisal. The Community Foundation will accept real estate on a case by case basis.

Click here to get started   |    Community Foundation vs. Private Foundation