Ways to Establish a Fund
At the North Texas Community Foundation, we make it easy to establish a fund. Donors can utilize a variety of assets, including:
- Cash Gifts. Cash and personal checks are the simplest way to give. Cash gifts allow donors to claim a current income tax deduction of up to 50 percent of their adjusted gross income (AGI) in the year of the gift, with a five year carry-forward period.
- Publicly traded securities and mutual funds. Donors receive a double income tax benefit when they give publicly traded securities or mutual funds (i.e. securities for which there is a recognized market, such as the NYSE). Such gifts are deductible at their full market value, and the donor avoids capital gains on the stock’s appreciation. Donors can claim a current income tax deduction of up to 30 percent of their adjusted gross income (AGI), with a five-year carry forward, if required.
- Closely held stock. Proposed gifts of closely held stock are reviewed on a case-by-case basis by the Community Foundation. If accepted, donors are entitled to a deduction for the appraised fair market value of the gift. The deduction can be up to 30 percent of the donor’s adjusted gross income (AGI). Capital gains are also avoided.
- Retirement plan assets. Gifts of Retirement Plan Assets such as CLT’s, CRT’s and also Life Insurance can be considered on a case-by-case basis.
- Real estate. Possible real estate gifts include a home, farm or ranch; commercial buildings; or income-producing land. Gifts of real estate may be contributed as outright gifts, as a retained life estate or as a contribution to a charitable remainder trust, or may be gifted to the Community Foundation via bequest. All gifts of real estate will require certain procedural steps, including site visit, environmental assessment and a qualified appraisal. The Community Foundation will accept real estate on a case-by-case basis.
- Estate Gifts. Generally 100% deductible for estate tax purposes with no limitation.
In December 2015, new provisions for the IRA Charitable Rollover were signed into law that permanently allow taxpayers age 70 ½ or older to transfer up to $100,000 annually from their IRA accounts directly to charity without first having to recognize the distribution as income.
Contributions through an IRA Charitable Rollover to the North Texas Community Foundation can be established as designated funds, field of interest funds, unrestricted funds or scholarships. The provision does not allow gifts to be made from an IRA to a donor-advised fund.
We are happy to help you establish a fund from an IRA Rollover. If you have questions, please contact us at 817.877.0702.