Outright Gifts
Direct Current Gifts — Donors may establish (and later add to) any of the Community Foundation’s funds by contributing a variety of asset types during their lifetime. Current gifts generate the most beneficial charitable income tax deduction available under the law, while at the same time removing the contributed assets from the donor’s estate for estate tax purposes. Below are types of outright gifts.
Cash and Non-Appreciating Properties
Charitable gifts of cash and non-appreciating property qualify for federal income tax deductions at cost in the year the gift is made. The gift is deductible up to 50% of adjusted gross income, and any excess deductions can be carried over for up to 5 years if necessary. The higher the donor's tax rate, the greater the savings.
Appreciated Securities and Real Estate
Long-term stocks, bonds, and real estate that have increased in value may be very appropriate for charitable gifts. The donor is eligible for a charitable deduction equal to the fair market value of the property in the year the gift is made, and all capital gains tax on the property is avoided. This type of gift is deductible up to 30% of the donor's adjusted gross income, and any excess deductions can be carried over for up to 5 years if necessary. Read more about Gifts of Real Estate for Charity.
Ordinary Income and Short-Term Capital Gains Property
Such gifts qualify for federal income tax deductions at cost in the year the gift is made. They are deductible up to 50% of the donor's adjusted gross income, and any excess contributions can be carried over for up to 5 years if necessary. Read more about Gifts of Real Estate for Charity.
Bargain Sale
In a bargain sale, the donor sells appreciated property at a lower price than the fair market value to a charity, with the charity realizing the difference as a gift. Each part of a bargain sale is reported separately. The donor reports capital gains on the sale portion, and receives a tax deduction for the gift portion. The basis is allocated between the gift and the sale portion. Read more about Gifts of Real Estate for Charity.
Information about our investment and payout policies and our fee sturcture can be found in the Donor Resources Section.
For more information contact President/CEO, Dan Baldwin or call 831.375.9712 x 115.
Confirmed in Compliance with National