You can give now. You can give in the future.
Many contributors to the Southern Colorado Community Foundation have found that planning the form and timing of their gifts has enabled them to support their community generously, while enhancing their present quality of life and preserving their estates for family and friends. Gifts to the Community Foundation offer maximum tax advantages and take a variety of forms. It is always advisable to consult closely with your tax advisors on your specific circumstances.
Cash: A cash gift is the simplest and most convenient means of sharing in the work of the Community Foundation. Cash gifts qualify as a charitable contribution for federal income tax purposes and are fully deductible up to 50% of adjusted gross income in the year of the gift. Deduction amounts exceeding this limit may be carried forward for up to five additional years.
Appreciated Securities: Gifts of appreciated securities – stocks, bonds, and stock in closely held companies – may also be used to create a fund at the Community Foundation or to add to an existing fund. By transferring the bonds or stock to the Community Foundation, you may completely avoid capital gains tax, while securing an income tax deduction for the full current fair market value, equaling up to 30% of adjusted gross income in the year of the gift.
Real Estate: A gift of real estate yields a deduction for the full market value of the property and avoidance of capital gains. A gift of real estate carries the additional benefit of the option to retain the right to live in a residence which is contributed.
Deferred or planned gifts play an important role in the ongoing existence of a community foundation. Tax and estate planning can make possible a substantial contribution for the benefit of the community. Some deferred gifts offer the benefit of a current tax deduction in exchange for the commitment of funds to a charitable purpose. The result may be an increase in current income for you and another beneficiary. At a later date, the gift will perpetuate your charitable intent. There are many attractive arrangements for giving in the future, including:
Bequests: In your will you can include gifts to the Community Foundation in the following forms: a gift of cash, stock or property, whether specific or by percentage; a gift of real estate, whether developed or undeveloped; a gift in trust to benefit family members during their lives, with principal conveyed to the Community Foundation at their passing; or a gift of the remainder of an estate when other specific bequests have been fulfilled.
Charitable Lead Trusts: With a charitable remainder trust, you make an irrevocable transfer of assets to the Community Foundation. You receive, in return, a lifetime of interest income for specified beneficiaries – you, your spouse, children, or friend. Thereafter, the Community Foundation receives the assets representing the gift. Such vehicles include charitable remainder unitrusts and charitable remainder annuity trusts.
Life Insurance: There are several ways you can give through life insurance. You may give a policy already owned, assign the dividends as a gift, or name Southern Colorado Community Foundation as a beneficiary. In addition to estate tax benefits, you also gain an income tax deduction.