Because of the Community Foundation’s flexibility and the variety of tax effective ways to make a charitable gift, the Foundation has become the trusted resource for donors and their financial advisors as they search for ways to give back to the community.
Philanthropy is a very personal decision and each gift made through the Community Foundation can be tailored to address both the financial issues and the charitable intentions of the donor and his/her family. By working directly with the Foundation’s staff, donors can accomplish all of their goals for charitable giving.
Create a Fund
It is surprisingly easy to set up a fund at the Community Foundation. With seven different fund types, our staff can help you find the one that best meets your goals. When you make your gift before the year end, you receive an immediate tax deduction for the full market value.
With a Donor Advised Fund (DAF), you and your family have the flexibility of selecting the charities or causes to support when the timing is right. A Scholarship Fund is also a popular type among donors creating funds at the Community Foundation.
Gifts to an Existing Fund
Donors who already have a fund at the Foundation may make additional gifts in any amount, at any time. You can use this as an opportunity to encourage your family and friends to add to your fund as well, possibly in lieu of holiday gifts. Several local nonprofits have designated endowment funds with the Community Foundation. If your favorite charity has an endowment fund with us, consider making a gift to their fund to support their long term financial security.
Tribute and Memorial Gifts
Creating a fund or making a gift to an existing fund is a wonderful way to pay tribute or memorialize a loved one. By naming a new fund after someone, you create a permanent and meaningful legacy to their lives. Many scholarship and designated funds at the CFDC are named for family members or friends of our donors.
Promote Philanthropy to the Next Generation
With the ability to name successor advisors on Donor Advised Funds, the Community Foundation has put a new emphasis on cultivating and supporting the next generations of philanthropists. To share your values with the next generation, consider involving your children or grandchildren in charitable giving activities by creation of a Donor Advised Fund and name your children and/or grandchildren as advisors. You get the tax benefits and they learn the joys of philanthropy.
Gifts of Appreciated Assets
Giving an asset, especially a long-term, highly appreciated asset, is better than giving cash. You receive the dual tax benefit of an income tax deduction based upon the fair market value of the gift and you avoid capital gains tax. As the tax year draws to a close, consider sitting down with your professional advisor and taking a closer look at your portfolio for those highly appreciated assets that can provide the charitable gift tax benefit you need this year.
Giving Begins at Home
For some donors, real estate may be the best asset to use for charitable giving because it remains one of our most appreciated assets. You can gift your home, a vacation home or another real estate holding to establish a current fund and get the tax deduction for the fair market value of your real estate. Or, use the real estate in a deferred gift vehicle such as those described below to get a tax deduction, create an income stream and then support your charitable interest through a named fund at the Community Foundation upon your death.
Create an Income Stream
Charitable gift annuities, charitable remainder trusts and charitable lead trusts can provide you with the opportunity to make a current commitment to the charity or causes of choice and receive an income stream for yourself and/or your beneficiaries. These deferred gift vehicles allow you to avoid capital gains tax on a gift of appreciated property, receive an income tax deduction for a portion of the gift and remove the asset from your estate for tax purposes. These vehicles can be very helpful to your retirement planning. Your financial planner can provide more information about the benefits of such a plan.
Plan for the Future of Dunn County
Making a New Year’s resolution to complete your estate plan? Interested in endowing your annual gifts to charity so that support continues in perpetuity even after your lifetime? Include your favorite charity in your estate plans by creating a deferred fund at the Community Foundation of Dunn County. Include a bequest to the Foundation in your Will or name the Foundation as primary or contingency beneficiary of your retirement plan assets. Insurance can also be used in a variety of ways to make a gift.