Ways Your Clients Can Give Now
The North Texas Community Foundation makes it easy for you and your clients to establish a fund. Your clients 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 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, with a five-year carry- forward period, if required.
- Closely held stock. Proposed gifts of closely held stock are reviewed on a case-by-case basis with 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. Capital gains are also avoided.
- Retirement plan assets. Retirement plan assets such as IRAs make excellent charitable gifts. Many professional advisors call retirement assets “tax-cursed:” although these plans enjoy favorable tax treatment prior to retirement, they are subject to income tax, estate tax and excess accumulation tax at the death of the plan participant. In many cases, it may be advantageous to leave other assets to heirs and name a Fund in the Community Foundation as the beneficiary of the retirement plan. In a bequest, the family can avoid both estate tax and income tax if the plan participant makes the plan a gift to charity.
- Life insurance. Gifts of life insurance enable the donors to make a future gift to the Community Foundation at a relatively modest cost. Donors may name the Community Foundation as the owner and beneficiary of existing policies that they no longer need. Donors are entitled to a federal tax deduction for the cash surrender value in the year the gift is made.
- 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. They may also be gifted to the Community Foundation via bequest. All gifts of real estate require certain procedural steps, including a site visit, environmental assessment and qualified appraisal. The Community Foundation will accept real estate on a case-by-case basis.
To learn more, please contact Nancy Webb, Director of Philanthropic Services, at email@example.com or 817.877.0702.