| Scenario |
Issue |
Solution |
| Year-end Tax Planning |
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. |
Establish a donor advised fund and receive an immediate tax deduction for your gift. You may subsequently suggest grants to the charities of your choice whenever it’s most convenient. Consolidating your giving through a donor advised fund makes it easy to keep track of charitable gifts for tax reporting. |
| Comfortable Retirement |
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. |
Establish a charitable gift annuity or remainder trust that provides a stream of income to you and/or your spouse during your lifetimes. Any remainder can be used to establish a charitable fund to benefit the charity (ies) that you designate. You receive enhanced current income, while knowing that your charitable objectives will be met in the future. |
| Appreciated Stock |
You own highly appreciated stock that you’ve held for more than one year. You have a strong interest in affordable housing for the disabled and would like to take 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. |
Open a donor advised fund with a gift of your appreciated stock. 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, with the assistance of Foundation staff if desired. |
| Appreciated Real Estate |
You own appreciated real estate and wish to donate it to your local church, but the church is not prepared to accept gifts of real estate. |
Donate your property to establish an endowment fund for the benefit of your church. You will receive a tax deduction for its fair market value, while avoiding any capital gains tax that would arise from a sale. The Foundation will sell the property and use the proceeds to provide ongoing operating support to the church. |
| Estate Preservation |
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. You would also like to ensure your gift impacts critical community needs present at the time of your gift. |
Contribute your IRA assets to the Community Foundation. Gifts that support the Foundation increase our ability to respond to community needs. By gifting your IRA or qualified retirement plan assets to charity at the time of death, you maintain the use of your assets during your lifetime, generate an estate tax deduction and avoid paying income taxes upon the distribution of plan assets. |
