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For Advisors
Tax deductions for cash?
- Private foundation is 30% of AGI
- Donor advised fund is 50% of AGI
Tax deductions for appreciated securities?
- Up to 20% of AGI for private foundation
- Up to 30% of AGI for donor advised fund
Tax deduction for real estate?
- Only cost basis for private foundation
- Fair market value for donor advised fund
Excise Tax?
- 2% for private foundation
- None for donor advised fund
Distribution rules?
- 5% for private foundation
- None for donor advised fund
Tax return to file?
- Yes, the complex 990-PF for private foundation
- None for donor advised fund
Administrative paperwork?
- Can be complex for private foundation
- Minimal or none for donor advised fund
Length of time to establish?
- 3-9 months for private foundation
- 1 day for donor advised fund
Startup costs?
- $3-10,000 or higher for private foundation
- None for donor advised fund
Disclosure to the public?
- Yes for private foundation
- Donor advised fund can remain anonymous
Free Services
Listed below are the many ways we can support your work with clients.
Free Presentations
Would the members of your firm be interested in learning more about how charitable giving can benefit clients? Or do you belong to a club or membership organization that would like a presentation? Our staff often speaks to groups about:
- charitable giving options
- community needs and issues
- our grantmaking priorities and impact
- planned giving
- charitable giving benefits
Free Gift Annuity Illustrations
We are glad to run the numbers for you if a client is interested in a charitable gift annuity. Many clients seek giving opportunities that provide capital gains savings, an income tax deduction and a lifetime income for the donor, donor's spouse or another individual.
Benefits include inclusion in the Plaza de Legado Legacy Society income for life, and often great tax savings on gifts of appreciated stock or securities. Estate gifts to the Foundation ensure the future livelihood of the essential nonprofit organizations in our community.
If you prefer to run an illustration yourself, the Foundation's Gift Calcs software can assist you in helping your clients consider the advantages of a charitable gift annuity with the Foundation as beneficiary. To use the planned giving calculator, simply click on the Gift Calcs Logo below. Your information is strictly confidential.
Contact the Taos Community Foundation's Director, Elizabeth Crittenden Palacios (505) 737-9300 or email with questions regarding gifts that can provide lifetime income to your client while meeting their charitable goals.
Comparing a Private Foundation with Community Foundation Services
The Taos Community Foundation will consult with families and candidly discuss the advantages and disadvantages of setting up a private foundation. The disadvantages - costs, ongoing administrative burdens, quarterly tax payments, mandatory payout rates and reduced tax benefits - encourage many individuals and families to search for an alternative. Establishing a named fund at the Taos Community Foundation often meets the needs of donors more efficiently and effectively.
Establishing a fund with the Community Foundation has some distinct advantages over a private foundation. When we talk about these issues, we are discussing a very serious subject - money. Your money determines how you live, how you support your family, how you will retire, how you are taxed and how you share with others. It also says a lot about how hard you have worked and how committed you are to making good decisions.
We treat your investment with us as an honor, and we continually work to ensure that donors are happy with fund service and how the money is distributed.
Please open this PDF document to see a grid listing the advantages of establishing a fund with the Taos Community Foundation.
Gifts of Stock/Wire Transfer
The Taos Community Foundation accepts gifts of public or private stocks, government securities and wire transfers. They can be easily transferred from the donor's brokerage account to the Foundation's account via DTC.
We ask that donors notify us of their gift, the amount of shares, type of stock and which fund to apply the gift to. Donors work directly with their broker requesting the transfer is made. Instructions for such gift types are available on our Gift of Stock Form.
The 6 Clues
Often your client approaches you with a problem that charitable giving can answer. Here are six clues your client may be giving you. Your client says:
1. "I want to sell appreciated property, but I'm concerned about capital gains taxes."
Giving all or part of the asset to charity will eliminate or reduce capital gains taxes and can replace less efficient charitable giving, continue or begin to provide lifelong income, and/or provide satisfaction about supporting a charity of one's choice.
2. "I'll be receiving additional taxable income this year. I'd like to give some to a charity, but I'm not ready to decide which one."
A donor-advised fund will lock in a tax deduction for the current year and allow as much time as needed to choose the charity.
3. "I manage a rental unit which provides needed income, but it's too much work."
Giving the rental property to charity and setting up a charitable remainder trust (CRT) will eliminate the capital gains tax, secure lifetime income (perhaps more than from the rental), claim a sizeable tax deduction and support a favorite charity.
4. "I have a large retirement fund but my children will only receive 20 or 30 cents on the dollar."
Giving the retirement fund to an endowment from which heirs may recommend charitable gifts will reduce estate tax, eliminate income tax on the IRA distribution and create a family legacy. In the meantime, other assets can be used for gifts to family members. Link to new federal IRA and land tax benefits (article)
5. "I have no children, and it's time to write a will."
How do they want to be remembered? Suggest a charitable fund at the Foundation as a way to be remembered and an alternative to paying too much estate tax.
6. "I'd like to help a long-time employee (or friend, sibling or parent)."
A life-income gift, such as a gift annuity, will assure the friend a lifetime income and allow your client to support a favorite charity following the friend's death.