HOW TO GIVE
- Create a new fund.
- Contribute to an existing fund.
- Unrestricted contribution.
- Estate planning.
For more information about the types of fund receptacles, click here.
Whether through a fund, contribution or estate, donors’ gifts can take a variety forms. Major types include:
Cash assets are the simplest and most convenient gift.
Donors pay no capital gains taxes and receive the maximum allowable tax deduction under the law for the full market value of appreciated securities given to the Foundation.
A gift of real estate held for more than one year by the owner can yield the same tax advantages as gifts of securities. The Foundation’s ability to accept real estate gifts depends upon a number of factors, including current market conditions and the value and condition of the property.
The expense and time of administering a private foundation can become an unwanted burden. Transferring the assets of a private foundation to a donor-advised fund at the New Braunfels Community Foundation provides significant tax and administrative benefits.
To extend giving beyond a lifetime, the Foundation can be named as beneficiary of a will. Estate taxes may be significantly reduced, and the fund will continue to work as a living symbol of donor interests.
If the protection of a life insurance policy is no longer needed, it may prove a practical, tax-deductible gift. Or donors may retain ownership of a policy, naming the Foundation as a beneficiary; this yields an estate-tax reduction but no deduction for income tax purposes.
Donors can name the Foundation beneficiary of an IRA or qualified retirement plan. Depending upon accumulations, retirement plan assets left to heirs can be subject to multiple taxation. A gift of retirement plan assets can even be used to establish a charitable remainder trust to provide income to a spouse or family members.
A donor-advised fund is the most flexible fund. With this type of fund, all charitable giving is consolidated into one invested vehicle.
Once the fund is established, donors can recommend grants at any time for $500 or more to a 501(c)(3) public charity. They can use their fund to recommend donations to the charities to which they already give, and/or the NBCF will provide information on organizations or areas of interest to assist donors in choosing their grant recipients.
This type of fund is for benefactors who want to be personally involved in their giving.
With a designated fund, benefactors can name one or more specific organizations or agencies to benefit from the fund. The gift is invested for long-term growth and provides perpetual support to the organization(s). Moreover, the donor’s choice(s) will be honored through the years unless a designated organization ceases to operate or ceases to deliver the services that the donor wishes to support. If this occurs, NBCF’s investment team stands ready to help identify other organizations with the same mission.
A field-of-interest fund gives benefactors the opportunity to target their contribution to one or more fields of primary concern, for example, youth, health, the arts and so on. These funds are broad in scope, yet targeted so as to meet the needs of the community. The NBCF will use its expertise to identify, evaluate, and award grants to the most qualified and deserving organizations and programs in the donor’s areas of interest.
A scholarship fund lets benefactors help deserving students further their education. Donors can designate any level of education from preschool to postgraduate work, as well as any field of study.
Unrestricted funds are essential to building a flexible and responsive community endowment that can respond to changing and emerging needs. They enable the community foundation to identify and make grants to a variety of community programs and services.
Rather than designating how the money will be spent, benefactors allow the NBCF to determine how to most effectively distribute the funds to meet the communities’ most pressing needs.
Finally, an agency endowment can be established with the community foundation by a nonprofit organization. Contributions from many different donors are collected and invested with the NBCF and the earnings from the principal are granted to support the programs or operations of that particular nonprofit organization.
YEAR-END TAX DECISIONS
As the end of 2019 approaches, many of your clients may be considering options for charitable giving. Research by the Center for Philanthropy shows that 24 percent of annual donations by individuals or families occur between Thanksgiving and New Year’s Eve. Whether inspired by the season or the uncertainty of future tax changes, many people are currently seeking the best means to execute their charitable desires.
The New Braunfels Community Foundation can help with those important decisions. From our variety of funds, your clients can select one or more to express their charitable interests while securing 2019 tax deductions.
Some NBCF funds to consider:
- Donor-Advised Fund. Permits the highest level of donor involvement, allowing advisory authority over grant making throughout the life of the fund.
- Designated Fund. Creates a fund specifically to benefit causes or non-profits the benefactor identifies.
- Unrestricted Gift. Fulfills a broader community focus by allowing the NBCF Board of Directors to assist with community needs as they arise.
- Field of Interest Fund. Permits identification of specific areas of interest and the flexibility to meet community needs.
Advantages of creating a fund with the New Braunfels Community Foundation:
- Flexibility. Gifts can take many forms. Long-term capital-gain assets, such as appreciated stock, are an attractive option, as they generally qualify for deduction at fair market value.
- Efficiency. Consolidate charitable giving and gain access to administrative capabilities, simplifying giving and reducing time and expenses.
- Impact. Community funds allow donors to honor someone, to create a legacy, and to keep their gifts viable in perpetuity. All funds may be added to indefinitely, building a charitable vehicle with ever-increasing impact.
LIST OF FUNDS
Anna DeLemos Scholarship
Annon Snider Memorial Fund
Anthony Chalupa Memorial Scholarship Fund
Arline Dierks Echols Memorial Scholarship Fund
Bulverde Senior Center
Canada/Kelly Veterans Fund
CASA of Central Texas
Clay Townsend Memorial Pet Fund
Cliff Drysdale Foundation Fund
Cold Weather Shelter Fund
Comal Emergency Relief Fund
Comal 4-H Scholarship Fund
Communities in Schools of South Central Texas
Community Endowment for the Arts
Connections Community Impact Fund
CRRC of Canyon Lake Endowment Fund
Dennis Kuehler Scholarship
DePasqual and Dugger Scholarship
Donna Lynn Vetter Memorial Scholarship
Donop and Gras Memorial Scholarship
Fair Oaks Ranch Sports Park Fund
Family Promise of Greater New Braunfels Endowment Fund
Friends of the New Braunfels Public Library Fund
Friends of Tye Preston Memorial Library Endowment Fund
Gonzalez Family Scholarship
Headwaters at the Comal Fund
Hope Hospice Promise Fund
Karl and Beth Hittle Scholarship Fund
JP Rector Memorial Scholarship
Lagunas-Zamora Memorial Scholarship
Lifeguards: a fund for rescuing teens
Lindsey Lee Smith Memorial Fund
Living for Raysen Memorial Fund
Logan’s Legacy Memorial Fund
Madeleine Hindman Memorial Fund
Marty Lindley Foundation Fund
Musical Bridges Around the World
NBCF Operational Fund
New Braunfels 175th Anniversary Fund
NB Women GO
New Braunfels Area Car Club
New Braunfels Public Library
Nick Leifeste Memorial Scholarship Fund
Nowotny and Mill Scholarship Fund
Peter Nordberg Memorial Fund for Animals
Ruth Neffendorf Memorial Scholarship
Sophienburg Museum and Archives
SS American Memorial Foundation Fund
The Honorable Judge Robert T. Pfeuffer Civic Leadership Scholarship Fund
TLU Business and Economics Department Endowment Fund
Toney Family to Families Outreach Fund
Walter and Noreen Sippel Scholarship
WGL Jr. Scholarship Fund
William and Sally Ann Karnau Education Scholarship
Wonka’s Choice Fund
Young Life Designated Fund