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
If you are 70 ½ or older, you can contribute up to $100,000 tax-free, from a traditional IRA, to support the causes that you care about without being subject to federal income taxes on the distribution.
Using your distribution to establish a designated fund in your name enables you to make annual grants to the nonprofits you care about most – in perpetuity. Or, use your distribution to create a named scholarship fund, investing in the minds of future generations.
To learn more, contact Lindsey Touchette at Ltouchette@cfcollier.org or (239) 649-5000.
*IRA distributions may not establish or be gifted to a donor-advised fund.
Charitable Gift Annuities (CGA)
Income for today, a gift for tomorrow. That’s what giving through a Charitable Gift Annuity can achieve. When you establish a Charitable Gift Annuity you can receive guaranteed income for life, benefit from an immediate income tax deduction, and leave a legacy where the remainder becomes an endowed fund at the CFCC that will support the causes that are important to you forever.
CGAs are written for those who are 70 or older. The minimum amount is $25,000.
If you are interested in having a Charitable Gift Annuity illustration created for you, please contact Lindsey Touchette at Ltouchette@cfcollier.org or (239) 649-5000.
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.