Outright Gifts:
Cash
A cash gift is the simplest way to establish a named fund or to add
to an existing fund. Your charitable gift qualifies for tax advantage
under federal law.
Securities
Gifts of appreciated securities (bonds and stock, including stock
in closely held companies) also may 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.
First steps to take...
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.
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.
First
steps to take...
Note: As with all financial matters, donors should contact their professional advisor for tax deduction advice and referral.