Gifts of cash are deductible up to 60 percent of the donor’s adjusted gross income (with a five-year carry forward), while gifts of cash to a private foundation are deductible only up to 30 percent of the donor’s adjusted gross income (with a five-year carry forward).

Gifts of private assets (e.g., real estate, private company stock) are deductible at their fair market value of up to 30 percent of the donor’s adjusted gross income (with a five-year carry forward). In comparison, gifts of private assets to a private foundation are deductible only at the contributor’s tax basis of up to 20 percent of the donor’s adjusted gross income (with a five-year carry forward).

Gifts of publicly traded securities are generally deductible at 100 percent of the fair market value, including capital gain of up to 30 percent of the donor’s adjusted gross income (with a five-year carry forward). Conversely, gifts of publicly traded securities to a private foundation are only deductible up to 20 percent of the donor’s adjusted gross income (with a five-year carry forward).

Gifts received through a donor’s estate are generally 100 percent deductible for estate tax purposes, with no limitation.

Making a charitable gift of tangible personal property through the Community Foundation can help put one of your assets to work for good. Gifts of tangible personal property, such as art, antiques and collectibles may be donated to the Community Foundation, where they will be evaluated before acceptance. The donor is responsible for securing an independent appraisal of donated item(s) if the value of the gift is more than $5,000.

Your client can make a bequest by naming The Northern New York Community Foundation as a charitable beneficiary in a new or revised will, or by adding a codicil to an existing will or living trust. The bequest can come in the form of a stated dollar amount, specific property, percentage of the total estate or a portion of or the entire residue of the estate. View “Steps for Making a Bequest” here.

Retirement plan accounts and IRAs are often subject to layers of taxation, including both estate and income tax. Making a charitable gift of those funds at death, however, can provide a charity or a donor’s fund with the full 100 cents on the dollar.

A Charitable Gift Annuity enables your client to make a gift to their favorite charity and receive fixed payments for life in return. The payments may begin immediately or can be deferred to a future date of the donor’s choice. The terms of the Charitable Gift Annuity arrangement are set forth in a contract signed by the donor and the charity. The arrangement terminates upon the donor’s death, at which point the designated charity will receive the remaining funds. Charitable Gift Annuities cannot accept additional contributions once they have been established, but it is simple to set up additional annuities if needed.

A Charitable Remainder Trust (CRT) allows your client to establish a trust for the ultimate benefit of their fund at the Community Foundation, for specific nonprofits, or left to the discretion of the Foundation. It’s also an opportunity for donors to retain a lifetime income generated by the contributed assets, receive a current income tax deduction and defer the capital gains recognized on the sale of the contributed asset. A CRT may help your client eliminate capital gains taxes altogether and reduce or eliminate gift and estate taxes. This vehicle can improve lifetime cash flow, and when coupled with an asset replacement trust, can provide for their heirs.

A Charitable Lead Trust allows your client to provide income to their fund, designated nonprofits or the needs of our region for a specified number of years. Then, the remainder is returned to them or their named beneficiary. This means your client may be able to transfer assets to others without incurring estate, gift or income taxes.

The gift of life insurance can provide valuable income and estate tax savings. As a donor, your client can gift a life insurance policy that is no longer needed or take out a new policy. For maximum benefit, name the Northern New York Community Foundation as the owner and beneficiary of the policy. This can benefit their fund’s designated nonprofits or the needs of their community.

If your client owns valuable property and would like to continue using it throughout their lifetime, they can arrange to gift it to the Community Foundation at the end of their life. As a result, your client may receive an income tax deduction now, and an estate tax deduction in the future.