When it’s time to donate to a charity or cause, do you think first about the cash available in your bank account?  Whether starting a Fund or making a donation, we encourage our donors to think about appreciated assets.

Gifting these items not only allows you to make a more impactful gift but also can provide you with a tax benefit.  Below is a chart of just some of the ways to give and when you might use these options.

Benefits of Gifting Assets (you can also view this document here as a PDF)

DONATION PROS CONS
Cash

Liquid asset

Easiest to transfer

Least tax-advantage

Reduces spending

money

 

Securities

Can deduct full Fair Market

Value of stocks

Avoid capital gains tax

Relatively easy to transfer

to charity

Only tax-advantageous

when gifting

appreciated stocks

(those that have

Increased in value

since purchased)

 

IRA Rollover

Donors age 70 ½ can avoid

Income tax on required

minimum distributions by

gifting up to $100,000

per person directly from

their IRA to charity

 

No income tax

deduction, simply

avoidance of

additional taxes

Real Estate or

Tangible Property

Can, generally, deduct full

Fair Market Value of the

Property

No need to deal with the

sale of property

Relatively easy to transfer

ownership to charity

 

Charity must be willing

to assume costs/risks

related to selling the

property

 

Bequest in your Will

Complete avoidance of

both capital gains and

estate taxes

Donor will not see

the fruits of the

gift during his/her

lifetime

 

Naming a charity

as a Beneficiary of your Life Insurance, Retirement Account(s) or non-qualified annuities

Easy to do – simply add the

charity to beneficiary

form

100% of IRA gift will

transfer to the charity,

while gifts of IRA to

heirs will be taxed

 

Donor will not see

the fruits of the

gift during his/her

lifetime

Being charitable can also make sense financially. Think strategically about your assets and involve your tax advisors in your giving.  In addition to the assets listed above, the Community Foundation can accept as a donation nearly any type of asset for which a value can be established.

We at the Community Foundation pride ourselves on turning unique situations into extraordinary accomplishments.  Contact the Community Foundation and let’s make a difference in our community, now and forever.