Types of Giving
Giving to the Foundation is as simple as writing a check or clicking on the Donate button, but donors would be wise to consider optional methods of support which can provide special tax benefits, payment over time, or designed uses. We can provide information, but an attorney, tax consultant, life insurance consultant, or estate planner should be consulted if complex procedures are envisioned.
Cash - Direct gifts of cash in lump sum or pledged over a period of time, are a convenient and immediately satisfying way of establishing a fund. Charitable income tax deductions are available for such gifts.
Appreciated Securities or Real Estate - Gifts of appreciated securities held long term may be made prior to their sale, normally avoiding capital gains and providing a charitable deduction of their full market value. Gifts of appreciated real estate may be of advantage to donors also. It is often beneficial to the donor to make a gift of a future interest in real estate during a lifetime. For example, a couple might retain the right to live in a a residence for the balance of their lives, giving the remainder interest to the Foundation. Such a donation gains an income tax deduction in the year of the gift and eliminates tax on the property.
Gifts by Will - A donor's gift may be a specified amount, a percentage of the donor's estate, or specific assets. Such a provision often makes it possible for a donor to give large amounts for community good than seems wise during a lifetime.
Gift Annuities, Trusts and Life Insurance - There are a number of arrangements that can be made using annuities, special trusts and life insurance. These provide special advantages for particular donors and are usually designed in consultation with personal advisers. In some cases life income is retained by donors without loss of tax advantages. Important among these is the Gift Annuity in which the donor makes the gift with a related immediate tax deduction and receives for life a determined rate which is partly tax free at time of receipt. Current rates on such contracts can be very attractive relative to short term interest rates and serve well those who wish to give but need continuing income.
Transfer of Endowments - In some cases organization with small endowments may wish to transfer them to the Foundation while retaining all rights to income. This would assure competent investment management, an assured income, and a system of continuing use of assets if the organization itself ceases to provide the services for which the endowment as intended. Major shifts from private foundations may be facilitated by establishing special funds within the Pella Community Foundation.