Community foundations work closely with donors and/or their professional advisor to create personalized approaches to meet their giving goals. Donors can start and maintain their choice of charitable giving funds using a variety of assets, including:
CASH is one of the easiest ways to establish a fund or add to an existing fund at a community foundation.
SHARES OF BUSINESS INTEREST allow the donor to receive the maximum tax deduction allowed and avoid capital gains tax. Business interests can be used as part of a planned succession or a sale to an outside party.
IRA CHARITABLE ROLLOVER is available for individuals 70 ½ and older to use the required minimum distribution from their individual retirement accounts and give to the causes they care about.
APPRECIATED STOCK GIFTS help the donor avoid capital gains taxes and earn a charitable tax deduction based on market value. The gift is then used to establish a fund or is added to an existing fund that benefits the local causes and organizations the donor cares about most.
FARM EQUIPMENT that has been depreciated provides an opportunity to avoid recapturing the sale proceeds as ordinary income when given to the community foundation.
GRAIN allows the donor to support organizations and communities while enjoying the tax advantages of not claiming the sale of the grain as income.
REAL ESTATE GIFTS provide an opportunity for the donor to receive the maximum tax deduction allowed and avoid capital gains tax. Real estate includes personal, commercial and vacation properties.
BEQUESTS establish charitable giving funds through a donor’s will. In doing so, the donor is able to distribute some or all of his/her assets tax free.
INSURANCE POLICIES can benefit a fund at the community foundation.
FARMLAND can be sold or retained with the community foundation and provides an opportunity for donors to avoid capital gains tax, while also realizing a deduction on the fair market value of the land.
RETIREMENT PLANS allow the donor to name a charitable giving fund at the community foundation as a beneficiary of assets.
LIFE ESTATES allow a donor to give a residence or farmland but retain its use and the rental income over their lifetime. Donors create a future gift to charity, continue to benefit from the asset and receive a partial tax deduction now.