Whether you want to make a one-time donation or establish a permanent charitable legacy, virtually any asset can be used to make an impact.
Check or credit card is the easiest way to contribute to a fund and may qualify for maximum allowable income tax deductions.
Stocks and Bonds
Gifts of securities are highly appreciated, they may be given so the donor can deduct the full fair market value as a charitable contribution and thus avoid capital gains tax on the appreciation.
Property that is not mortgaged may also be given at appraised value so the donor can receive a full charitable deduction and avoid capital gains taxes.
Life insurance policies can be used to create a major gift at relatively low cost to the donor. If the Community Foundation is named owner or beneficiary of a new or existing policy, the donor receives a tax deduction. Additional premiums paid through the Foundation are tax deductible, and proceeds pass to charity, free of estate tax. A special publication is available through the Foundation on all the advantages of contributing Life Insurance.
Closely-held Business Interest
Shares of close-held business interest can be gifted to the Community Foundation creating a donor advised fund. This can often help minimize the tax implications of the sale or closure of a business.
A Supporting Organization allows donors the same degree of involvement as a donor advised fund but gives greater visibility. A supporting organization may have its own board, letterhead, counsel and investment manager but qualifies for the preferential tax treatment afforded community foundations when appreciated or closely held stock is used to establish it.
- The purposes of a supporting organization must be compatible with the Community Foundation.
- The majority of its board (not necessarily its officers) must be appointed by the foundation.
- The minimum gift needed to establish a supporting organization is in the $1 million range.
An existing private foundation can be transferred to the Community Foundation to eliminate many of its burdensome and expensive administrative tasks. The Community Foundation provides professional and cost-effective ways of administering these funds well into the future.