Types of Gifts

Types of Gifts 2017-06-21T10:55:24+00:00

What can I give?

There are many options to choose from when giving through the Community Foundation of the New River Valley. Start achieving impact where it matters to you with a gift today; or leave a lasting legacy of caring for your community with a planned gift.

IF YOU WANT TO MAKE AN IMMEDIATE IMPACT

A check or credit card gift is the simplest type of charitable gift.

Many gifts of appreciated stocks, bonds and mutual funds result in a charitable deduction for the full market value of the donated asset, even if you bought it for far less, and minimize capital gains taxes.

You may transfer ownership to the Community Foundation and receive a tax deduction for the policy’s cash value. Gifts to CFNRV to cover premiums due may also qualify for a deduction. Some people find they can make a much larger gift by purchasing a life insurance policy and naming the foundation as owner and beneficiary.

 IF YOU WANT TO PLAN TODAY TO GIVE TOMORROW

Name the Community Foundation to receive a specific dollar amount or percentage of your estate in your will or trust. Currently, charitable bequests are not subject to an estate tax and provide a great way to create a charitable legacy. Here is Sample Bequest Language that can be used in drafting wills and trusts.

You make a charitable gift and you and/or someone you designate can receive lifetime income. The remainder goes to CFNRV upon your passing, potentially reducing and deferring capital gains tax and reducing probate costs and estate taxes.

Charitable Lead Trusts offer a way for you to support the Community Foundation’s programs and also transfer substantial assets to beneficiaries with the potential for significantly lowered gift and estate taxes. Income is paid to the foundation annually while the assets are in the trust, typically no longer than 20 years.  When the trust ends, the principal is returned to you or, more typically, to your children or grandchildren. Such trusts can be created during your lifetime or at death, with significant savings in gift or estate taxes possible because of the “temporary” nature of the gift to the foundation.

Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, with the remainder at death being placed into a charitable fund. A charitable remainder trust offers a gift to our Community Foundation without loss of income and provides a current income tax deduction for a future gift. There are a variety of types of CRT’s including those that provide a fixed dollar amount to the donor, those that provide a percentage, and pooled income options set up by a charity that allow for multiple donors to contribute. The value of the gift is based on current market value without triggering a taxable capital gain. A charitable remainder trust offers income at a desired percentage without regard to current investment return.

Naming the Community Foundation as a beneficiary of your insurance policy enables you to create a charitable legacy without invading cash and other assets designated for your heirs.

At death, retirement plan or IRA balances are included when figuring estate and income taxes to your beneficiaries – often up to 85 percent. Double taxation on retirement plan withdrawals decreases their value for your heirs. Funding a charitable bequest with an IRA or retirement plan prevents the bequest from becoming a liability of your estate, and the gift is made with pre-tax dollars. You can save taxes and preserve your hard-earned assets for the good of your community.

The IRA charitable rollover allows taxpayers aged 70½ or older to donate up to $100,000 from their individual retirement accounts (IRAs) directly to charitable nonprofits. By giving directly to the charity of your choice, you avoid income tax on your IRA disbursement and provide valuable support to the organization.

HOW DO I DECIDE?

You have a number of options when it comes to your charitable giving. Our staff will work closely with you and your professional advisors to identify a gift that meets your needs.

YOUR GOALS YOUR ACTIONS YOUR BENEFITS
Make a quick and easy gift Contribute a gift in cash or by check An income tax deduction and immediate benefit for the community
Make a gift with other existing sources Example: Donate a life insurance policy you no longer need Current and possible future income tax deductions
Defer a gift until after your lifetime Bequeath cash, property, or a portion of your estate An estate tax deduction
Make a gift while minimizing the impact on taxes and capital gains Contribute long-term appreciated stock or other securities A charitable deduction that may reduce capital gains tax
Minimize the twofold taxation on IRA or other employee benefit plans Designate a fund at the foundation as one of your beneficiaries May reduce tax liability on assets left to heirs
Secure a fixed payment stream and make a gift to benefit charity Create a charitable gift annuity Tax benefits and fixed payments for life
Receive income today while creating a permanent philanthropic legacy for the future Create a charitable remainder trust that pays income to you during your lifetime for a designated time period At maturity, assets benefit the fund you establish to meet the community needs important to you