If marketable or closely-held securities are highly appreciated, they may be given so the donor can deduct the full fair market value as a charitable contribution and thus avoid capital gains tax on the appreciation. The donated assets must be held more than a year prior to the donation in order to deduct the fair market value, rather than the basis.

A bequest of cash, securities or real property can significantly reduce the taxes otherwise payable by your estate. Your heirs benefit and the fund continues your good work in your name permanently, a living symbol of your care and concern for others.

Administering a private foundation under IRS rules can be burdensome and expensive. The Community Foundation provides professional and cost-effective ways of administering these funds well into the future and at the same time, fulfill your charitable desires.

A donor can contribute retirement plan assets [401(k), Keogh, 403(b)] to the Community Foundation for purposes the donor has specified. Also, retirement assets combined with charitable remainder trusts and life insurance trusts can be a valuable way of maximizing benefits from retirement plans. At death, retirement plan or IRA balances are included when figuring estate and income taxes to your beneficiaries – often up to 85%. 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.

The Community Foundation offers competitive rates to residents of the state of Indiana who give current gifts but retain a lifetime income. A portion of these gifts may be tax-deductible and income is guaranteed. For a detailed profile that fits your situation, contact Alison Gerardot.

Immediately after making a gift of real estate, donors may receive the maximum tax deduction permitted by law and may avoid the capital gains tax in the process. Transferring property to the Community Foundation prevents a loss of value that would occur due to taxes if the donor first sold the asset, and then donated the after-tax net income from the sale.

A charitable remainder trust offers a gift to the Community Foundation without the loss of income and provides a current income tax deduction for a future gift. The value of the gift is based on current market value without triggering a taxable capital gain. A CRT offers income at a desirable percentage without regard to current investment returns. While the Community Foundation does not establish this kind of trust or act as a trustee, it can be the beneficiary of a CRT. By making the Community Foundation the beneficiary, the donor can be assured that their gift will be used for the donor’s intent for as long as the donor wishes. And the donor can make the choice of how the charitable remainder trust will be divided to make his/her philanthropic wishes come true.

By naming the Community Foundation as owner and beneficiary of a paid-up life insurance policy which the donor no longer needs, the donor may receive a number of tax benefits, including estate and income taxes, and benefit the community in which the donor lives or works.