Year-end Tax Planning

Scenario: You just sold your business and would like to make a substantial charitable donation to offset your taxable income, but you have no time before the end of the year to research charities that might be of interest to you.

Solution: Open a Donor Advised Fund at the Community Foundation and receive an immediate tax deduction for your gift. You may direct grants to the charities of your choice the following year or when it's most convenient. This free service makes it easy to keep track of charitable gifts for tax reporting. You also can open an account, direct grants to charity and access up-to-date account information online through the Foundation's web site.

Comfortable Retirement

Scenario: As a retiree, you want to increase the income you and your spouse currently receive from certificates of deposit, but you don't want to risk investing in stocks. You also would like to leave something after your death to benefit the arts and education in your community.

Solution: Establish a charitable gift annuity that provides a guaranteed stream of income to you and/or your spouse. Any remainder left when the annuity payments stop can be used to establish a charitable fund at the Community Foundation for the charity or charities that you designate. You will have peace of mind in knowing that your income payments are assured, while your charitable objectives will be met far into the future.

Private Foundations

Scenario: You would like to broaden your family's charitable impact through a private foundation but want greater tax benefits and fewer bureaucratic hurdles.

Solution: Open a Donor Advised Fund at the Community Foundation. With a Donor Advised Fund, your family may direct grants to public charities anywhere in the country without all the hassles, restrictions and expense of establishing a private foundation.

Appreciated Stock

Scenario: You own highly appreciated stock that you've held for more than one year. You have a strong interest in taking an active role in supporting your community. You also would like to involve your adult children in establishing a plan for your family's charitable giving.

Solution: Create a Donor Advised Fund by gifting your appreciated stock to the Community Foundation. You will receive an immediate charitable tax deduction for the fair market value of the stock and avoid paying capital gains taxes on its sale. Your family, including your adult children, can serve as advisors to the fund and develop a charitable mission together. The Foundation's staff will work with you to help achieve your charitable goals.

Estate Preservation

Scenario: You are approaching retirement and want to reduce future income and estate taxes by directing IRA assets left at the time of your death to charity, but you also prefer to leave specific giving decisions to others.

Solution: Leave a gift to the Community Foundation. The gift enables the Foundation's Grants Committee to use its years of community knowledge and experience to determine where grant money is needed most. By gifting your IRA or qualified retirement plan assets to charity at the time of your death, you maintain the use of your assets during your lifetime, generate an estate tax deduction and avoid paying any income tax upon distributing the assets to the Foundation.

Highly Appreciated Assets

Scenario: You own appreciated real estate and wish to donate it to your favorite local organization, but the entity isn't equipped to accept gifts of real estate.

Solution: Donate your property to the Community Foundation to establish an endowed fund for your organization. You will receive a tax deduction for its fair market value, while avoiding the capital gains tax that would arise from a sale. The Foundation will sell the property and use the proceeds to provide continuing operating support to the organization.