- Professional Advisors
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:
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:
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:
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.
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:
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.
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.