Types of Gifts

Donors can make a gift to the Community Foundation in a number of ways. Those who choose to make a planned gift are invited to become members of the Foundation's Centennial Society, a program to recognize and thank donors who share the Foundation’s vision of building permanent charitable capital.

The full menu of gift options are described below. To learn more about the Centennial Society, click here

Outright Gifts

  • Cash - Gifts of cash or check are an easy and convenient way of making a charitable contribution and can be used to establish or add to a charitable fund. Cash gifts entitle you to a tax deduction, up to 50% of your adjusted gross income (AGI), with an opportunity to carry-over any excess deduction for five years.

  • Securities - Gifts of appreciated securities (bonds and stock, including stock in closely held companies) may also be used to establish a fund or add to an existing fund. Such gifts often provide important tax advantages. Their full 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. The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as with publicly traded stock. 

  • Life Insurance - Life insurance policies can also be used as charitable gifts. If the Community Foundation is named as the owner and beneficiary of an existing or new life insurance policy, the donor receives an immediate tax deduction which usually approximates the cash surrender value of the policy. All premium payments thereafter made by the donor will also be deductible as a charitable contribution.  

  • Real Estate - A gift of real estate held more than a year can provide the same federal tax advantages as those described for gifts of securities. Because the Community Foundation's ability to accept gifts of real estate depends upon a number of factors, such gifts are considered on a case-by-case basis.

  • Assets from Other Trusts and Private Foundations - To the extent you are permitted by law to make grants from a private foundation, you can direct such grants to the Community Foundation. In some cases, if a private foundation is no longer meeting your philanthropic objectives, it is possible to terminate it and transfer its assets to the Community Foundation to create a Donor Advised Fund or another type of charitable fund. 

Planned Gifts

  • Bequests / Gifts From Wills and Revocable Living Trusts - Donors can provide for a specific charitable organization or purpose in their will through a bequest to the Community Foundation. Learn more about bequests by clicking here.

  • Pension Plan Beneficiary - If a donor is going to make a charitable bequest, the best assets to transfer to a charity will normally be assets in a retirement plan because they produce taxable income. Most assets that an heir inherits are free from income tax. However, an heir will pay income tax on amounts received from a decedents' retirement plan (profit sharing plan, Section 401(k) plan, IRA, etc.) because the distributions are considered "income in respect of a decedent." 

  • Life Insurance Beneficiary - If the donor is not ready to give up ownership of a life insurance policy, the donor can still help the community through the Community Foundation by naming the Community Foundation as beneficiary. The donor retains ownership of the policy and has access to the cash value as well as the right to change the beneficiary. Since the donor retains ownership of the policy, there is no charitable deduction for the value of the policy upon designation of the charitable organization as beneficiary or for subsequent insurance premiums. Any proceeds payable to the Community Foundation at the donor's death, however, will not be subject to federal estate tax.

  • Life Income and Other Gifts - Charitable Gift Annuities, Charitable Remainder Trusts and Charitable Lead Trusts can provide income to donors and/or other named beneficiaries. Learn more about them by clicking here

  • Charitable IRA Rollover - Donors who are 70½ years old or older, can make a gift of up to $100,000 by transferring IRA assets to your community foundation. For more details, download the Foundation's fact sheet here
     

Note: As with all financial matters, donors should contact their professional advisor for tax deduction advice and referral.

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