Ways to Give
Benefactors can choose to give in one or more of the following ways:
- 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.
Private foundation assets-transfer
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 Area 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.
IRA or qualified retirement plans
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.