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Planned Giving Ideas




The community foundation offers the flexibility to create a donor’s personal philanthropic fund designed to meet each donors’ specific planning needs and charitable interests. PassionFunds provide donors the opportunity to give when the time is right for the donor, including during their lifetime and a legacy gift from their estate.

We are happy to work in close partnership with your team of legal, tax or investment advisors so you can feel secure in your plan’s creation and execution.

 

 

Let’s begin with our discovering:

  • Do you have a particular area of concern you wish to help improve?
  • Do you prefer to make gifts to various nonprofits of your choice over time?
  • Do you have a favorite nonprofit agency you wish to support forever?
  • Would you like to consult with community foundation experts, nonprofit leaders, and other donors to enhance your giving plans?
  • Do you wish to give regularly during your lifetime?
  • Do you wish to work with your family to give together?
  • Do you wish to provide a legacy gift from your estate?
  • Do you desire additional income during your lifetime or for your family?
  • Do you wish to sometimes-always be anonymous in your giving or use your fund to inspire others?
  • Would you like to memorialize your family name, a loved one, or mentor in your life by creating and naming your charitable fund?
  • Would you like to consider a variety of non-cash type assets you can donate and convert to charitable funds?
  • Would you like to save time with your research, grant making and record keeping?
  • Do you have a desire to further maximize your charitable deductions?

 

 

WAYS TO GIVE

Cash

A cash gift is the simplest way to establish a fund or give to an existing fund. Cash gifts are fully deductible up to 60 percent of the donor's adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.

 

IRA Charitable Rollover

Once a donor reaches age 70½, they may contribute up to $100,000 per person from their IRA to the foundation without having to include the distributions in their taxable income. Benefits of an IRA charitable rollover include:

  • Avoid income taxes on distributions from the IRA to the community foundation. (Note, IRA charitable rollovers do not qualify for a charitable deduction)
  • Satisfy your required minimum distribution (RMD) for the year with the tax-free rollover.
  • Reduce taxable income – even if you do not itemize deductions.
  • Give back to your community through a foundation PassionFund designed for your individual interests. (The IRS does not permit charitable IRA rollovers to donor-advised funds.)
  • After taking your current year RMD from your 401k plan, you may consider rolling all or a portion of your 401K to your IRA where you may continue to make future years tax-free annual qualified charitable rollovers.

 

Marketable Securities

Gifts of appreciated securities (stocks, bonds and most mutual funds) also provide tax advantages. If you have held the securities for one year or longer, the current value generally is tax-deductible up to 30 percent of your adjusted gross income, with a five-year carryover if the gift amount is more than the 30 percent limit. For example:

 

 

Life Insurance

You may name The Community Foundation as the owner and beneficiary of an existing or new life insurance policy. You have the opportunity to receive an immediate tax deduction that approximates the cash surrender value of the policy. All premium payments made by you thereafter are deductible as a charitable contribution.

 

Retained Life Estate:

You can continue to live in and fully enjoy your home (or vacation property) as long as you like while giving the future ownership of it to The Community Foundation. This is called a Retained Life Estate. The gift of the "remainder interest" is a charitable contribution in the year the gift arrangement is made, which may result in a substantial income tax charitable deduction. When the life tenancy terminates, The Community Foundation becomes the owner of the property. The proceeds of the property's sale may be used to establish a fund at The Community Foundation, or add to an existing fund.

 

Real Estate

It is possible to use real estate to fund charitable giving. If you have held the real estate for one year or longer, you eliminate capital gains and the current fair market value is tax-deductible up to 30 percent of your adjusted gross income, with a five-year carryover if the gift amount is more than the 30 percent limit.

Careful consideration is given to:

  • The marketability of the property.
  • The value of the property.
  • Any debt on the property.
  • Carrying costs to the community foundation post-acceptance.
  • Potential risks to the community foundation during the holding period and through the sale process.

 

Charitable Gift Annuity

A charitable gift annuity can be a great solution for donors who have appreciated assets they would like to avoid capital gains tax and are looking for a steady stream of income. A charitable gift annuity allows you to receive income for one or two lives and the remainder interest may be used to establish a named charitable fund, or be added to an existing fund. 

The tax advantages may include an immediate charitable income tax deduction when you create your annuity and a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains.

 

Charitable Remainder Trusts

A charitable remainder trust offers you a great deal of flexibility. You or another beneficiary you name may receive income for life, or a specified number of years. The eventual distribution to The Community Foundation will only take effect upon the death of the trust's income beneficiaries, or at the end of the specified number of years. At that time, the remainder of the trust transfers to The Community Foundation to support your charitable giving goals.

 

Charitable Lead Trusts

A charitable lead trust enables you to make significant charitable gifts now while transferring substantial assets to your family later. A trust is set up from which The Community Foundation receives annual payments for your life or for a specific number of years. These funds may be used to support nonprofits you choose or be added to an existing fund. A charitable lead trust can work in conjunction with a PassionFund. This provides the donor and their family the flexibility as to whom and how they direct their charitable giving. When the trust terminates, the principal is returned to you or distributed to others you designate. The trust assets pass to the recipients at reduced tax cost—sometimes even tax-free.

 

Bequests

Legacy bequests allow donors to establish a plan for gifts after their lifetime, knowing that the causes they care about will be supported for generations to come.

To assure mutual understanding of the donor’s intent, the donor and the community foundation may enter into a simple form fund agreement during the donor’s lifetime that describes the donor’s legacy recognition-anonymity preferences, charitable intent and the foundations administrative responsibilities. No investment and administration fees or charges are incurred until the fund is funded by the bequest.

  • Wills/Trusts   You may name the foundation fund name in your estate document as a beneficiary of the estate. During your lifetime, you may change your mind about the nature of their charitable intent, the fund agreement may be amended for no cost.

  • Retirement Account Beneficiary Designations   Individual Retirement Accounts (IRAs) or other qualified retirement plans are often one of the best types of assets to leave to charity because they may be taxed heavily when left to heirs. When you name your community foundation fund as the beneficiary of your retirement accounts, such as an IRA, 401K or 403b plan, nonprofit ––100 percent of the gift will be available to support your charitable interests. You may continue to provide for your family by electing to leave a percentage of the retirement account balance to benefit your family and to your foundation fund (up to 100%).

  • Life Insurance Beneficiary Designation   Donor’s may name the community foundation fund as the beneficiary of their life insurance policies and avoid potential estate taxation. You may continue to provide for your family by electing to leave a percentage of the policy death benefit to your family and to your foundation fund (up to 100%).