Meeting Your Philanthropic and Financial Goals
You can make a contribution to your fund at the Three Rivers Community Foundation using different techniques and types of assets. No matter how you arrange your planned gift, it will have distinct tax, financial and charitable benefits.
An Outright Gift is a donation of cash or other assets to the Three Rivers Community Foundation. Write a check, donate stock or give a piece of real estate, and the proceeds go to work in the community right away. For instructions on making a stock donation, please contact our investment company representative Paul Hansen at HFG Trust, (509) 735-7507 or firstname.lastname@example.org.
Bequests allow you to make a gift in your will and can result in estate tax deductions.
Charitable remainder trusts involve an irrevocable transfer of cash or other assets to a trustee who manages those assets and pays income to you or other beneficiaries for life or for a term of years. At the end of the trust term, the Three Rivers Community Foundation receives the remaining principal and uses it according to your philanthropic recommendations.
IRA Accounts and Life Insurance can be used in a variety of ways when making a gift to the Three Rivers Community Foundation. You can, for example, name the Three Rivers Community Foundation as a beneficiary of a policy, thereby securing an estate tax deduction. Alternatively, you can contact your mutual fund company and change the beneficiary of your IRA to the Foundation. Either are good options for preserving the legacy passed on to your heirs by replacing other assets previously donated to charity.
Once you have determined the arrangement that best meets your needs, simply choose to guide your giving from among several fund types that offer you or your designated heirs a broad range of involvement levels in grantmaking.
The Three Rivers Community Foundation staff will gladly work with you and your financial advisors to design an individual plan for you and your family that honors your charitable and financial goals.
NOTE: Please refer to your own advisors regarding your specific situation. The information contained on this website is not intended as advice on important legal matters. There is no substitute for the careful legal advice of an attorney or accountant retained by you to discuss your particular circumstances.
Donors may deduct outright cash gifts on their federal income tax returns -- up to 50 percent of adjusted gross income in one year, with any excess carried forward for up to five additional years
Donors may deduct the full fair market value of long-term appreciated property -- securities or real estate -- up to 30 percent of adjusted gross income, with any excess carried forward for up to five additional years. Donors also do not pay any tax on capital gains
For gifts of personal property, such as artwork or coin collections, the deductions may be either for full market value or the cost basis, depending on the Foundation's disposition of the property
An outright gift is a donation of cash or other assets to the Three Rivers Community Foundation. Write a check, donate stock or give a piece of real estate, and the proceeds go to work in the community right away.
Giving in the Future
Perhaps the easiest way to donate to the Three Rivers Community Foundation is through bequests. Bequests to the Foundation leave your assets in the community, where local needs are addressed and problems solved. An up-to-date will places assets exactly where you wish them. A gift by will to the Foundation also eliminates taxes on appreciated property for your heirs. The donor’s estate receives and estate tax deduction for the full value of the bequest.
Endowments established with bequests leave a legacy of your values. Bequests can be added to existing funds or used to establish a new fund for causes dear to your heart.
Charitable Remainder Trust
Providing Favorably-Taxed Payments
You may transfer cash or other property to a trust, enjoy the income for life, and leave the remainder to the Three Rivers Community Foundation to establish a fund for your favorite charity or cause. Some of the benefits to the creator of a Charitable Remainder Trust:
- Generous income tax savings up-front
- Turning an asset into a stream of income
- Avoiding capital gains on appreciated property placed in the trust
- Removing the value of trust assets from your estate
- Bequeathing a generous gift that will make a difference to people and places you care about
The donor may use the income tax deduction up to 50 percent of adjusted gross income for cash gifts, and up to 30 percent of adjusted gross income for gifts of long-term appreciated assets in the first year; the excess may be carried forward for up to five additional years.
The donor pays no tax on the capital gain at the time long-term appreciated property, such as stock or real estate, is contributed. The trust is thus an excellent way to convert low- or non-income-generating assets into increased cash flow or to supplement retirement.
IRA Accounts and Life Insurance
Freeing Heirs from Tax-Cursed Assets
Gifting proceeds from IRAs and insurance is one of the easiest ways to benefit charitable causes. You simply contact your insurance company or mutual fund company to request a Change of Beneficiary Form. After naming the Three Rivers Community Foundation the secondary beneficiary after a spouse or other family member, mail the form back. That is all that is required.
Pre-tax IRAs make GREAT gifts to charity because children named as beneficiaries must pay tax on all that untaxed money within the IRA. IRA funds are also included in estates. It is possible to lose almost 90% of an IRA through estate and income taxes. The Three Rivers Community Foundation does not pay income taxes; therefore, a donation of an IRA creates a gift of the total amount remaining in the fund at death.
A life insurance policy can be used to make funds available to the Three Rivers Community Foundation in the future with a range of tax benefits. It can also be used to preserve the legacy passed on to heirs, by replacing other assets donated to charity.
Donors can make charitable gifts of life insurance policies in several ways:
- They can name the Three Rivers Community Foundation as a beneficiary. This may be a good option for donors whose beneficiaries have preceded them in death, or whose beneficiaries are covered by other life insurance policies or assets. (The proceeds from group insurance as well as individually owned policies can be given to the Foundation.) Donors receive an estate tax deduction for the donated proceeds of the policy, but no tax benefit during their lifetimes, as the gift is revocable.
- They can donate a policy that has been fully paid. In this case, the donor names the Three Rivers Community Foundation as a beneficiary, and also transfers ownership of the policy. Because the gift is irrevocable, the donor receives an immediate income tax deduction, reportable for up to 50 percent of adjusted gross income; any excess may be carried forward for up to five additional years.