When it comes to philanthropy and charitable causes, we have many options. The same is true when it comes to types of charitable assets/gifts.
One of the many benefits of working with a community foundation is the ease at which we manage a variety of assets and gifts for charitable giving. A donor may utilize charitable donations and gifts by putting them towards an existing fund, or the Community Foundation can explain how to start a fund with those assets.
Cash and marketable securities (stocks, bonds and shares of mutual funds) are typical gifts, but we work with our donors and their professional advisors to facilitate the contribution of all types of gift:
Cash is the simplest way to add to or create your own fund. Your gift immediately establishes your charitable fund from which you can make grants or award scholarships.
Stocks, bonds and mutual funds that have appreciated over time provide a greater tax benefit to you than gifts of cash. They’re easily transferable, transfer at full market value and allow you to avoid capital gains taxes. Download a Stock Wire Transfer Form.
All types of real estate make excellent charitable gifts. Your current home, investment property, vacation homes and land can be used for charitable purposes. Often a home is the largest asset a donor can give. You receive an immediate tax deduction for the full appraised value and avoid capital gains taxes if you’ve held the property for more than 12 months.
Retirement plans are often decimated by taxes at the end of life. Using these assets to add to or create a fund is a way to preserve their value and carry out your charitable wishes. There are also significant tax advantages for individuals, age 70 and over.
Charitable IRA Rollovers Made Permanent
December’s historic federal legislation made charitable IRA rollovers permanently available to individuals over age 70 ½. Community Foundations can now accept qualified charitable distributions of up to $100,000 from individuals annually. Because IRA assets can be among the mostly highly taxed, they make very effective charitable donations. The donor will not pay federal income tax on these gifts, unlike other IRA distributions.
A quick note: donor-advised funds cannot accept charitable rollovers from IRAs. But Community Foundations have so many other giving options. If you’re interested in this giving strategy, call us to talk about how much good you can accomplish.
Often life insurance is not needed later in life. You can establish your charitable Fund by naming the Foundation beneficiary. You may also purchase a policy in the Foundation’s name and earn an additional tax deduction each time premiums are due.