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Cash
Cash is the simplest and most efficient way to make a gift
to the community foundation. Cash gifts can be made in honor
of or in memory of a person, event, or organization; they
can be used to start a fund, to add to an already-existing
fund, or to make an unrestricted contribution. Any size gift
can leave a lasting legacy to the community.
Bequests and Devises
In your will, the community foundation may be granted a
specific bequest of personal property (cash, securities, or
other readily-marketable property) or a devise of real
property. It can also be named as the residuary beneficiary
of your estate. Charitable trusts can also be created by
will.
Securities
The transfer of appreciated securities is one of the most
popular ways of giving to a community foundation. When using
securities as a gift, you may generally take a charitable
deduction on your income taxes for the full market value of
the securities as of the date of the gift. You also may
avoid the payment of capital gains taxes on the sale of the
securities.
Real Estate
A gift of real estate provides the same advantages as a gift
of securities.
Life Insurance
You can name the community foundation as owner and
beneficiary of a life insurance policy that has served its
original purpose. You may be entitled to an immediate tax
deduction in the amount of the cash value of the policy and
a deduction for the premiums paid thereafter. Upon your
death, the full face amount of the policy will pass to the
Foundation free of estate taxes.
Charitable Gift Annuities
A charitable gift annuity is a
contractual agreement between a donor and the Community
Foundation under which the donor makes an irrevocable gift
of cash or property to the Foundation, and, in exchange, the
Foundation agrees to pay a fixed amount annually to one or
two annuitants. After the death of the annuitants, remaining
annuity assets are retained by the Foundation for charitable
purposes, including for the purposes of setting up one of
the various types of funds provided by the Foundation.
Charitable Trusts
A charitable remainder trust can be set up naming the
community foundation as trustee and remainderman and
providing income to one or more beneficiaries specified by
you. Upon the death of the life income beneficiaries, the
trust reverts to one of the types of funds in the community
foundation. The trust instrument specifies the type and
purpose of the fund to be established.
IRAs and Other Qualified Retirement Plans
Naming the community foundation as the beneficiary of your
retirement plan can provide tremendous tax benefits.
Consult your professional advisor
when considering charitable gifts. |
