You can contribute or create a named fund at the Community Foundation with an outright gift (payable either in one lump sum or in installments), a life-income gift, a remainder gift after life income ends, a planned gift or a bequest. Your gift may be:
Cash Appreciated Securities Closely Held Stock Stock Options Real Estate Personal Property Life Insurance Retirement Plans Transfer of a Private Foundation A Bequest or Lifetime Income Gift A Gift Annuity
Cash or Appreciated Securities
The most common gifts to the Community Foundation are those of cash or appreciated securities. Contributions of appreciated securities are attractive to people who have held stocks or bonds for a long period of time, especially when the appreciation is so great that the capital gains tax would take a substantial portion of the value if they were liquidated. With gifts of appreciated securities, you are able to make significantly larger contributions to the Community Foundation than the actual or initial cost of the securities, so you,the Foundation and ultimately the community benefit. Owners of a family business may make a gift of closely held stock, receive an income tax deduction, avoid capital gains tax, and ultimately reduce estate taxes. A corporation can grant the Community Foundation stock options which allow the Foundation to purchase the corporation's stock at some future time at a price fixed at the time the option is granted. When the Foundation exercises the option, the corporation is allowed a charitable deduction measured by the excess of the stock's fair market value on the exercise date over its option price.
Real Estate or Personal Property
When you give real estate or personal property to the Community Foundation, the Foundation in turn sells the property and creates or adds to your fund with the proceeds. For example, a donor could contribute real estate, such as a home or office building that was inherited or no longer needed. The gifts of real estate or personal property will be accepted on a case-by-case basis according to the policies of the Foundation. When you donate real estate or any other appreciated property, you generally receive a charitable tax deduction equal to the fair market value of the property, avoid capital gains tax, and reduce your taxable estate. The income tax deduction may be carried forward for up to five years. You should consult your tax advisor before making a gift of this kind. If you make a gift of your personal residence while retaining the right to live in it as long as you wish, the agreement is known as a "Life Estate." You will receive a tax deduction for part of the fair market value of your home, determined by your age, or life expectancy, and current interest rates.
When you give real estate or personal property to the Community Foundation, the Foundation in turn sells the property and creates or adds to your fund with the proceeds. For example, a donor could contribute real estate, such as a home or office building that was inherited or no longer needed. The gifts of real estate or personal property will be accepted on a case-by-case basis according to the policies of the Foundation.
When you donate real estate or any other appreciated property, you generally receive a charitable tax deduction equal to the fair market value of the property, avoid capital gains tax, and reduce your taxable estate. The income tax deduction may be carried forward for up to five years. You should consult your tax advisor before making a gift of this kind. If you make a gift of your personal residence while retaining the right to live in it as long as you wish, the agreement is known as a "Life Estate." You will receive a tax deduction for part of the fair market value of your home, determined by your age, or life expectancy, and current interest rates.
Life Insurance
Many people find in later years that they don't need all the life insurance they did when they were younger and choose to donate the policies to the fund they established at the Community Foundation. This is an inexpensive way to make a substantial contribution and is attractive to many donors. By purchasing a life insurance policy that is self-sustaining after a few years and by assigning ownership to the Foundation, you receive immediate charitable tax deductions for the amount of the premium you pay each year. Those premiums are paid to the Community Foundation, which, in turn, pays the insurance company. Upon your death, the Foundation receives the face value of the policy. Since the insurance policy is owned by the Community Foundation from the day you purchase it, it is not a part of your estate and is not subject to tax. Likewise you may have a policy for which you have no further need. This would offer you the opportunity to name the beneficiary as the Capital Region Community Foundation. If a policy is fully paid up, the tax deduction is its cash surrender value. If a policy is not paid up, the donor may continue premium payments to the Foundation and deduct those amounts as charitable contributions. In either case, the donor gets an immediate tax deduction and substantial estate tax savings later.
Retirement Plans
A donor may name the Community Foundation as a beneficiary of an Individual Retirement Account (IRA), 401(k), 403(b), annuity plan or other retirement plan and avoid paying taxes on a distribution of the account occurring after the donor's death.
Transfer of Private Foundations
Private foundations can transfer assets to the Community Foundation to establish a Donor Advised Fund or Supporting Organization. In either case, the private foundation's name and philanthropic goals can be retained. No tax penalty is assessed on transfers.
Bequests & Lifetime Income
Bequests made in wills or trusts are an attractive method of giving for people who want to minimize estate taxes and who want to continue supporting their community. Many people designate a bequest of an outright cash gift to the Community Foundation. Bequests may be based on a percentage, a specific amount, a remainder interest or on a contingency basis. In other cases, people can provide income to individual beneficiaries by establishing either a Charitable Remainder Trust or a Charitable Lead Trust.
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