Impact Report – Spring 2017 (13)
Gifts to the Community Foundation are as varied as the donors and the needs of the community for which they are intended.
A financial, tax or estate planner, assisted by the staff at the Community Foundation, can help donors select which gift best suits their situation.
- Cash is the easiest way to donate, whether it is actually cash, a check or an online gift.
- Appreciated securities, when donated, allow donors to avoid paying the capital gains tax while providing an accompanying income tax deduction for the current fair-market value.
- Real estate or personal property may be given to the Foundation. Of course, all gifts qualify for a charitable tax deduction in the year the gift was made.
- Private foundations or trusts often require time and money to manage. By transferring a private foundation or trust to the Community Foundation, all responsibilities for reports and administrative duties will be carried out by the staff of the Foundation. Since the Foundation does not pay excise tax, more income is available to benefit the donors’ favorite charities.
- Testamentary gifts, such as a bequest in a donor’s will, allow the gift amount to be exempt from estate taxes.
- Naming the Foundation as the beneficiary and owner of an existing or new life insurance policy allows donors an immediate tax deduction which usually approximates the cash surrender value of the policy. Insurance premiums paid after the transfer of the policy can be deductible as a charitable contribution.
- A charitable remainder trust allows donors, or someone the donor chooses, to receive an income for the donors’ lifetime by transferring assets to a trust, which qualifies for an immediate tax deduction. The amount of the deduction varies according to the age of the income recipient. When the trust ends, the remainder is placed in a permanent fund at the Community Foundation in the donors’name, with the annual distributions made in accordance with the donors’ wishes.
- Charitable gift annuities let donors make a substantial gift while retaining the right to a lifetime income. The amount of income allowed is a fixed amount based upon the donors’ life expectancy. When the income is no longer needed, the remainder supports the charitable cause donors have selected.
- With a charitable lead trust, the Foundation receives an annual payment for the donors’ lifetime or for a specified number of years. When the trust terminates, the principal is returned to the donors’ or others donors’ have designated.
- Not all donors wish acknowledgement for their philanthropic gifts. Some donors prefer anonymity. When that is the case, the Community Foundation of Boone County protects the identity and confidentiality of the donor.
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ContactKristi Reynolds, President & CEO, to get started!