There are many different methods of charitable giving. For more detailed information, please call Mike Tracey at 951-684-4194 x116. We also encourage you to talk with your tax advisor or estate planner about your plans for charitable giving to ensure that they are involved in helping you make the best choices for your philanthropic and financial goals.
A cash gift—which can be made using a 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 percent of the donor’s adjusted gross income. Unused deduction amounts exceeding this limit can be carried forward for up to five more years.
Gifts of appreciated securities—stocks and bonds, including stocks in closely held companies—provide important tax advantages to the donor. 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 can be carried forward for up to five more years. In addition, the donor does not pay federal capital gain tax on the appreciated portion of the gift.
A gift of real estate can provide many tax advantages. Gifting a residence, vacation home, commercial building, ranch land, or vacant property can also provide lifetime income. Please contact our staff to discuss the details of such a gift.
The donor can contribute a private residence, vacation home, or farm while retaining the right to live in and use the property. The donor may receive a generous income tax deduction for such a gift.
Using IRAs and other retirement plan assets is a farsighted and thoughtful way to make a charitable contribution. It provides the donor a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes. Naming The Idyllwild Community Fund as the beneficiary of a retirement plan—including IRAs, 401(k)s, and profit sharing plans may possibly eliminate estate and income taxes in some cases.
A gift of life insurance is another way to make a substantial contribution. By assigning ownership to The Idyllwild Community Fund, the donor can receive a tax deduction for the cash value of the policy and the premiums paid each year.
With this type of gift the donor sells an appreciated asset, usually real estate, to The Idyllwild Community Fund at a discount or below market value. The gift amount will be the difference between the fair market value and the cash received in exchange for the gift.
There are several ways to make a charitable gift that will provide you with income during your lifetime. Please contact us for more details on the various types of income-producing gifts, including Charitable Gift Annuities and Charitable Remainder Trusts.
The Charitable Lead Trust provides income to The Idyllwild Community Fund for a specific period of time and then distributes the remaining assets to the donor or others designated by the donor. There can be significant estate tax savings with this type of gift.
An excellent way to provide a gift after your life is by means of a bequest in your will or living trust. Setting up an endowment in your family’s name to support your favorite charities is a wonderful way to continue to support your philanthropic priorities in perpetuity. You may select an exact amount, a certain percentage, or a particular asset.
A private foundation can make a direct gift or transfer all or part of its assets to The Idyllwild Community Fund. The identity and purpose of the original donor are preserved, and the donor or others designated by the donor can participate as fund advisors. Because The Community Foundation is a public charity, there are no taxes to pay and we are responsible for all accounting and reporting requirements. Also, the donor has the assurance that a permanent nonprofit organization is in place to administer the fund forever. Additionally, The Community Foundation may be able to assist private foundations with their mandatory 5% payout requirement each year.