Ways to Give Today
You can use a wide variety of assets to Start a Fund at the Cape Coral Community Foundation including:
Cash, usually in the form of a check, is an easy and convenient way for you to Start a Fund to support causes that matter to you.
Gifts of cash enable you to claim a current tax deduction of up to 50% of your adjusted gross income in any one year when you itemize deductions, with the excess, if any, carried forward for an additional five years. Actual savings from gifts of cash depend on your tax bracket – the higher the tax bracket, the higher the deduction
When using securities to start a Fund, gifts of appreciated securities offer important tax advantages, as their full fair market value is deductible as a charitable contribution up to 30% of your adjusted gross income each year when you itemize deductions. Like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years. You do not have to pay federal capital gains taxes on the appreciated portion of the gift.
- publicly traded stock or bonds (paper certificates or electronic transfers)
- closely held stock (see below)
- restricted stock
- partnership interests (including family limited partnerships)
- mutual funds
Closely Held Stock
An often overlooked asset to Start a Fund is closely held stock.
Corporate owners frequently hold stock with a low cost basis that has significantly appreciated as the business has grown, often without having paid dividends along the way. After obtaining an IRS-required independent appraisal you can give stock in your company to the Community Foundation. Then, either the corporation or a third party has the opportunity to purchase the stock. You save taxes twice: first with a personal income tax charitable deduction for the fair market value of the stock, and also by avoiding capital gain tax on the appreciation.
Our Foundation can accept a gift of a house or other personal residence, farm, commercial buildings, and income-producing or non-income-producing land to Start a Fund.
A gift of real estate that you have owned for more than a year entitles you to a tax deduction based on the fair market value of the property – while allowing you to avoid capital gains tax. While this type of gift must be approved in advance, unencumbered real property is an excellent option.
Another consideration is the Life Estate Reserved gift, which allows you to give your home as a charitable contribution now (immediately obtaining a significant tax benefit), while retaining the ability to live in the home during your lifetime.
Retirement Plan Assets (such as IRAs)
For a gift through your estate, retirement plan assets are often the best to give because they are so heavily taxed if left to heirs. Income and estate taxes can easily consume over 65% of the value when left to heirs. By naming the Community Foundation as the remainder beneficiary of these assets, you can leave a very efficient legacy.
Limited Time IRA-to-Charity Rollover Opportunity
For the current tax year, a donor (aged 70 ½) is allowed to directly contribute to the Cape Coral Community Foundation up to $100,000 from an IRA (traditional or Roth) in lieu of taking a required minimum distribution. The amount is non-taxable and can be used to start a Fund at the Community Foundation. This contribution is particularly useful if you must take mandatory distributions but do not need them, if you do not itemize, or if you consistently max out your charitable gifts.
If you no longer need your life insurance policy, donating it can provide an easy option for your philanthropic legacy. Simply add the Foundation as a beneficiary, or make it the sole beneficiary of a policy you no longer need. When you transfer ownership of a cash value policy to the Cape Coral Community Foundation, you become eligible for a charitable tax deduction based on its current value.