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WAYS TO GIVE
There
are many different methods of charitable giving. For more detailed
information, please call Mike Tracey at 951-684-4194 x116. We also encourage you to talk with
your tax advisor or estate planner about your plans for charitable
giving to ensure that they are involved in helping you make the best
choices for your philanthropic and financial goals.
Cash
A
cash gift—which can be made using a check or credit card—is the
simplest way of making a charitable contribution. Cash gifts are fully
deductible for federal income tax purposes. The maximum deduction in
one year is limited to 50 percent of the donor's adjusted gross
income. Unused deduction amounts exceeding this limit can be
carried forward for up to five more years.
Appreciated Securities
Gifts
of appreciated securities—stocks and bonds, including stocks in closely
held companies—provide important tax advantages to the donor. The full
fair market value of the donated appreciated securities is fully
deductible as a charitable contribution for federal income tax
purposes. Unused deduction amounts exceeding this limit can be carried
forward for up to five more years. In addition, the donor does not pay
federal capital gain tax on the appreciated portion of the gift.
Real Estate
A
gift of real estate can provide many tax advantages. Gifting a
residence, vacation home, commercial building, ranch land, or vacant
property can also provide lifetime income. Please contact our staff to
discuss the details of such a gift.
Retained Life Estates
The
donor can contribute a private residence, vacation home, or farm while
retaining the right to live in and use the property. The donor may
receive a generous income tax deduction for such a gift.
Retirement Plan Assets
Using
IRAs and other retirement plan assets is a farsighted and thoughtful
way to make a charitable contribution. It provides the donor a number
of significant financial and tax advantages. Unlike many assets,
retirement plan assets are potentially subject to both income and
estate taxes. Naming The Idyllwild Community Fund as the
beneficiary of a retirement plan—including IRAs, 401(k)s, and profit
sharing plans may possibly eliminate estate and income taxes in some
cases.
Life Insurance
A
gift of life insurance is another way to make a substantial
contribution. By assigning ownership to The Idyllwild Community Fund,
the donor can receive a tax deduction for the cash value of the policy
and the premiums paid each year.
Bargain Sales
With
this type of gift the donor sells an appreciated asset, usually real
estate, to The Idyllwild Community Fund at a discount or below market
value. The gift amount will be the difference between the fair market
value and the cash received in exchange for the gift.
Gifts that Provide Income
There
are several ways to make a charitable gift that will provide you with
income during your lifetime. Please contact us for more details on the
various types of income-producing gifts, including Charitable Gift
Annuities and Charitable Remainder Trusts.
Gifts that pass an asset on to heirs – Charitable Lead Trusts
The
Charitable Lead Trust provides income to The Idyllwild Community Fund
for a specific period of time and then distributes the remaining assets
to the donor or others designated by the donor. There can be
significant estate tax savings with this type of gift.
Bequests
An
excellent way to provide a gift after your life is by means of a
bequest in your will or living trust. Setting up an endowment in your
family's name to support your favorite charities is a wonderful way to
continue to support your philanthropic priorities in perpetuity. You
may select an exact amount, a certain percentage, or a particular
asset.
Private Foundations
A
private foundation can make a direct gift or transfer all or part of
its assets to The Idyllwild Community Fund. The identity and purpose of
the original donor are preserved, and the donor or others designated by
the donor can participate as fund advisors. Because The Community
Foundation is a public charity, there are no taxes to pay and we are
responsible for all accounting and reporting requirements. Also, the
donor has the assurance that a permanent nonprofit organization is in
place to administer the fund forever. Additionally, The Community
Foundation may be able to assist private foundations with their
mandatory 5% payout requirement each year.