Ways to Give
The Community Foundation of West Alabama
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Making a gift to
The Community Foundation can be as simple as writing a check or as
sophisticated as creating an estate plan.
Options include:
Outright Gifts
Your clients may give cash, publicly traded securities, closely
held stock, real estate, real property, insurance policies, limited
partnership interests, retirement plan assets and combinations of
the above. Cash gifts are deductible up to 50% of the donor’s
adjusted gross income with a five-year carryover for any excess.
Checks or money orders can be made out to The Community Foundation
of West Alabama.
Appreciated Securities and Real Property
Gifts of appreciated securities or real estate may be made to the
Foundation and may allow a donor to make a more substantial
contribution while gaining important income tax advantages. By
giving in this form capital gains tax on the stock’s appreciation is
avoided. Gifts of appreciated securities are deductible at
their full market value if held longer than 12 months. The
Community Foundation allows the donor to claim a deduction based on
the market value of the securities at the time of the gift.
The Community Foundation strongly encourages all donors to consult
with their tax advisors before making such a gift so as to be aware
of all tax law that concerns donated appreciated property.
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Closely Held Stocks -
Donors may choose to contribute closely-held stocks to the
Community Foundation of West Alabama. This may provide an
opportunity for them to increase the liquidity of their assets for
charitable giving. Closely held stocks are shares in a
privately-owned business and are usually owned by family members,
top management and the corporation itself. The stock can be
contributed outright to the Foundation and the donor is entitled to
a deduction for the appraised fair market value. The donor
also avoids the potential capital gains tax on any appreciation in
the value of the stock. Subsequent to the gift, the Foundation
may sell the stock to the corporation or other shareholders for
cash. There can be no prior agreement between the charity and
a potential buyer before the gift is made.
Mutual Funds
Mutual funds can be excellent assets to contribute to the
Community Foundation. The fair market value of a mutual fund
share is its public redemption price on the date of the gift.
Gifts of mutual funds are deductible at their fair market value up
to 30% of the donor’s adjusted gross income, with a five-year
carryover, if needed. |
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Life Insurance
Gifts of life insurance enable donors
to make a future major gift to the Community Foundation at a
relatively modest cost. Donors generally are entitled to a federal
income tax deduction for the value of ongoing premium payments.
Gifts of life insurance are a particularly attractive way for
younger donors to make significant gifts or for families who no
longer need the security of large death benefits.
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Real Estate
Gifts of real estate may be made to the Community
Foundation of West Alabama. Real estate may include a house,
farm, vacation home, commercial building, and income-producing or
non-income producing land. Gifts of real estate may be
contributed as outright gifts, as a retain life estate with the
remainder to the Foundation, or to a charitable remainder trust.
Real estate may also be given to CFWA through a donor’s will.
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Tangible Personal Property
Gifts of tangible personal property such as art,
antiques, collectibles, jewelry, rare books, stamps and coin
collections, can be made to the Community Foundation. When
gifted to a public charity, such items are deductible at full fair
market value as determined by a qualified appraisal if the use of
the contributed property is related to the tax-exempt purposes of
the charity. If the use of the contributed property is
unrelated to the tax-exempt purpose of the charity, in other words
being given with the express purpose for the charity to sell it and
use the proceeds, then the donor is entitled to a charitable
deduction for his or her cost basis in the property. |
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