Outright Gifts of Cash and Securities

Outright Gifts of Cash and Securities

Outright gifts to the Foundation can include cash, securities, real estate, life insurance or other assets. Life income plans are charitable remainder trusts or annuities that allow you to take an immediate tax deduction for your gift and receive an income stream for life. Remainder gifts are assets left to the Foundation at your death, such as pension plans, life insurance or the proceeds from the sale of a house.

Outright Gifts

Cash

Fully deductible up to 50 percent of the donor’s adjusted gross income in any one year. Excess can be carried forward for up to five additional years.

Appreciated Securities

Stocks and Bonds. Avoids capital gains tax on the appreciated portion of the gift. Full fair market value is deductible as a charitable contribution up to 30 percent of adjusted gross income. Excess can be carried forward for up to five additional years.

IRA Distributions

Those 70 ½ or older can transfer IRA distributions directly to a charity. The donated assets are not considered income and are not taxed, preserving the full amount for charity.

Life Insurance

If you name the Community Foundation as owner and beneficiary of a life insurance policy, you receive an immediate tax deduction that typically approximates the cash surrender value. Further premium payments are deductible as a charitable contribution.

Other Assets

You can contribute real property, mutual fund shares, limited partnerships or other business interests.

Life Income Plans

Charitable Remainder Trusts

Charitable remainder trusts pay lifetime income to you or your named beneficiaries – either a fixed percentage of the fair market value or a fixed dollar amount. Assets are transferred to your named charitable fund to support your giving goals when the trust is terminated.

Charitable Gift Annuities

You receive a guaranteed income stream and an immediate tax deduction. After paying a lifetime annuity to you and your spouse, the remaining principal is transferred to your named charitable fund to accomplish your charitable goals. If you choose, you can receive the income tax deduction now but defer income until later.

Remainder Gifts

Bequests

You can establish or add to your named fund through a bequest in your will or trust.

Pension Plans

Since a retirement plan produces taxable income and an heir must pay tax on disbursements, it can be an excellent asset to transfer to a charity.

Life Insurance

Insurance proceeds payable to the Foundation at your death will not be subject to federal estate taxes.

Other Assets

You can contribute real property, mutual fund shares, limited partnerships or other business interests.