Ways to Give
There are a
variety of methods and forms of charitable giving. In all cases, the
donor can direct gifts to general areas of interest or to specific
The Foundation encourages
you to consult your tax adviser or estate planner about your plans for
charitable giving and for advice in making the best choices for your
philanthropic and financial goals.
Types of Gifts
A cash gift
- which can be made by check or credit card - is the simplest way of
making a charitable contribution. Cash gifts are fully deductible for
federal income tax purposes. The maximum deduction in one year is
limited to 50% of the donor's adjusted gross income. Unused deduction
amounts exceeding this limit may be carried forward for up to five
A gift of appreciated securities
- like stock and bonds, including stocks in closely held companies -
provide important tax advantages. The full fair market value of the
donated appreciated securities is fully deductible as a charitable
contribution for federal income tax purposes. Unused deduction amounts
exceeding this limit may be carried forward for up to five years.
Additionally, the donor does not pay federal capital gain tax on the
appreciated portion of the gift.
A gift of real estate
may provide many tax advantages. Gifting a residence, vacation home,
commercial building, ranch land, vacant property, or easement may also
provide lifetime income when the donor retains a life estate in the property. The donor may receive a generous income tax deduction for such a gift.
A gift of retirement plan assets
is a farsighted and thoughtful way to make a charitable contribution.
The donor may give IRAs, 401(k)s, and profit-sharing plans, which
provides the donor with a number of significant financial and tax
advantages. Unlike many assets, retirement plan assets are potentially
subject to both income and estate taxes; however, naming the Foundation
as the beneficiary potentially eliminates these taxes.
A gift of life insurance
may be a substantial contribution. By assigning ownership to the
Foundation, the donor may receive a tax deduction for the cash value of
the policy and the premiums paid each year.
A bargain sale
is the type of gift where the donor sells an appreciated asset, usually
real estate, to the Foundation at a discount or below fair market
value. The gift amount is the difference between fair market value and
the cash received in exchange for the gift.
A gift may continue to provide income in your lifetime. Examples include Charitable Gift Annuities and Charitable Lead Trusts.
Charitable Lead Trusts
provide income to the Foundation for a specific period of time and then
distributes the remaining assets to the donor or others designated by
the donor, usually the donor's heirs. Significant estate tax savings
are possible with this type of gift.
is a gift left by the donor in his or her will or living trust. Setting
up an endowment in the name of the donor's family's to support the
donor's favorite charities is a wonderful way to continue supporting
the donor's philanthropic priorities in perpetuity. The donor may
select an exact amount, a certain percentage, or a particular asset to
A private foundation may make a
direct gift or transfer all or part of its assets to the Foundation.
The identity and purpose of the original donor are preserved, and the
donor or other designated by the donor may participate as fund advisors.
A charitable distribution from the donor's IRA
is a gift where an IRA owner at least 70 1/2 years old directly
transfers up to $100,000 tax-free per year to an eligible charitable
organization such as the Foundation. This provides the donor an
exclusion from gross income for otherwise taxable IRA distributions.
Eligible IRA owners may take advantage of this provision regardless of
whether they itemize their deductions.