You have several options for structuring gifts to the Community Foundation from outright gifts to planned giving vehicles, each of which offers different benefits and tax advantages. It is important to contact the Foundation if you are considering a gift of real estate or non-marketable securities or if you would like the Foundation to serve as a trustee for a charitable trust. The Foundation’s staff is always available to assist you and your professional advisors in evaluating the most appropriate type of gift and vehicle to best suit your needs. For questions about gifts that can be accepted, contact Karen Coleman, (307) 739-1026
- Real Estate and Other Real Property
- Planned Giving
Gifts of cash are the most popular form of giving, and the easiest. They are fully deductible for federal income tax purposes up to 50 percent of your Adjusted Gross Income. Amounts given over this limit may be carried forward and deducted in future years, for up to five years beyond the year you make your gift.
A gift of appreciated securities that you have owned for over a year is deductible at fair market value, in amounts up to 30 percent of your Adjusted Gross Income. Just like with cash, amounts exceeding this limit may be deducted for up to five additional years. You also avoid paying any long-term capital gains tax on the increased value of appreciated securities. Other marketable securities, such as bonds, Treasury Bills or mutual funds, provide similar tax-saving advantages. Unlike most commercial charitable funds, the Foundation accepts gifts of securities that are not readily marketable, such as privately held or restricted stock, on a case by case basis, providing donors with greater tax planning options.
Real Estate and Other Real Property
The Foundation accepts real estate gifts, such as a house or other personal residence, ranch, commercial building, land, and income-producing property on a case by case basis. A gift of real estate that you have owned for more than a year may entitle you to the same federal tax advantages available for gifts of securities (a tax deduction for the fair market value of the property) while allowing you to avoid paying capital gains tax. If you wish to donate a personal residence or ranch and choose to live on the property for the rest of your life, you will receive a current tax deduction for the future value of your gift.
Many people want to leave a legacy that speaks to their life, values and commitments with a gift that makes a difference in perpetuity. If you are looking to establish an estate plan or to revise an existing plan, why not leave a portion of your estate to the Community Foundation to support either the Foundation itself or to provide a consistent future income stream to your favorite charities?
Remembering charity in your will or estate plan can:
- significantly reduce your tax liability;
- preserve your charitable intent in perpetuity;
- produce a financial windfall for your favorite church, school or nonprofit organization;
- provide added income benefits for you and your family when a life income plan is involved.
Bequests through a will are one of the most effective methods of providing for your favorite charities while enabling you to keep assets or property during your lifetime. Naming the Community Foundation in your will can be accomplished through an amendment called a codicil and by establishing a deferred fund through the Foundation. Your estate may be entitled to an estate tax deduction for the full value of a bequest. A bequest can be in any of the following forms:
- A general bequest leaves a certain dollar amount;
- A specific bequest leaves a piece of property such as such as stock or real estate;
- A residual bequest leaves all or a portion of what remains from an estate after debts, taxes, expenses and other bequests have been paid;
- A contingent bequest leaves assets only under certain conditions.
Life insurance can be used in a variety of ways to make a gift to the Community Foundation. For example, you can name the Foundation as a beneficiary of a policy, thereby securing an estate tax deduction. Alternatively, you can obtain an income tax deduction by donating either a paid-up policy or one on which premiums remain to be paid (regardless of whether the policy is new or was acquired in years past). Life insurance can also be used to preserve the legacy passed on to your heirs by replacing other assets previously donated to charity.
Life Income Plans
Life income plans offer a way for you to receive income for life, gain an immediate charitable tax deduction and leave an everlasting legacy to Jackson Hole. Additionally, life income plans can:
- provide charitable gift deductions;
- significantly reduce or even eliminate capital gains tax on gifts of appreciated property;
- improve income from low-yield, high-value assets;
- offer effective and flexible retirement planning options;
- remove gifted assets from your taxable estate;
- provide income for life for you and your family.