When your clients properly transfer non-cash assets into a fund at The Community Foundation, they can avoid incurring capital gains taxes and use the proceeds to support charitable causes.
The Community Foundation has experience converting many unique complex assets and will support you and your clients throughout the entire giving process.
Asset Types We Accept
Appreciated securities are a very effective charitable gift. Your client can avoid capital gains tax and generally can deduct the fair market value of the stock up to 30% of their adjusted gross income, with a five-year carry over. In the right circumstances, The Foundation can also accept restricted securities and closely-held or founders stock.
The Community Foundation can generally accept gifts of real estate, commercial property or undeveloped land upon review. Your client can structure their contribution of real estate asset differently depending on whether they want to make an outright gift or retain a lifetime right to use it.
A life insurance policy is an excellent tool for charitable giving, enabling your client to make a much larger gift than originally thought. Because assignment of benefits to The Community Foundation is irrevocable, your client will want to make sure that the policy has outlived the purpose for which it was originally purchased.
Your clients can use tangible personal property such as antiques and collectibles to make a charitable gift. The tax deduction eligibility of the property is based on its appraised value and depending on whether or not the property is used by the benefiting charity for its exempt purposes.
Individual Retirement Accounts–Qualified Charitable Distributions
If your client is 70.5 or older, they have the opportunity to make a charitable gift and satisfy their annual required minimum distribution without paying taxes. The distribution must come directly to The Community Foundation. The IRS does not allow your clients to direct gifts from an IRA distribution to a donor advised fund, the distribution maximum is $100,000.
Cash is the simplest asset to give, and your client can deduct the value of their cash gift up to 60% of their adjusted gross income on their federal income tax return. Donations exceeding that limit may be carried over and deducted for up to five years following the year of the gift.
Other Types of Gifts: Do your clients have other unique assets they want to convert to a charitable fund? Please contact The Community Foundation for a confidential discussion.