There are several ways your clients can give to the Community Foundation of Abilene and structure permanent endowment funds to help the causes they care about most. Our Gift Acceptance Policy describes the guidelines we use to screen proposed gifts.
Cash and personal checks are the simplest way to give. Cash gifts enable donors to claim a current income-tax deduction of up to 50 percent of their adjusted gross income in the year of the gift with a five-year carry forward.
Donors receive a double income tax benefit when they give publicly traded securities or mutual funds (i.e., securities for which there is a recognized market, such as the NYSE.) These gifts are deductible at their full market value, and the donor avoids capital gains on the stock’s appreciation. Donors can claim a current income tax deduction of up to 30 percent of their adjusted gross income with a five-year carry forward, if required.
We review proposed gifts of closely held stock case by case. If accepted, donors are entitled to a deduction for the appraised fair market value of the gift, up to 30 percent of the donor’s adjusted gross income. Capital gains are also avoided.
IRAs and other retirement plan assets make excellent charitable gifts. Many professional advisors consider retirement assets “tax-cursed.” Although these plans enjoy favorable tax treatment prior to retirement, they are subject to income tax, estate tax and excess accumulation tax at the death of the plan participant. In many cases, it may be advantageous for plan participants to leave other assets to heirs and to name their endowment fund at the Foundation as the beneficiary of the retirement plan. In a bequest, the family can avoid both estate tax and income tax if the plan participant makes the plan a gift to charity.
Gifts of life insurance enable the donor to make a future gift to the Foundation at a relatively modest cost. Donors may name the Foundation as the owner and beneficiary of existing policies that they no longer need. Donors are entitled to a federal tax deduction for the cash surrender value in the year the gift is made.
Gifts of real estate include homes, farms, ranches, commercial buildings or income-producing land. A gift of real estate may be contributed as an outright gift—as a retained life estate or contribution to a charitable remainder trust—or given via bequest. All gifts of real estate will require certain procedural steps, including site visit, environmental assessment and a qualified appraisal. The Foundation accepts real estate on a case-by-case basis.
Working with your financial advisor, we offer a charitable remainder trust that provides life income for you (and loved ones) after which an endowment of your choice is created.