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Ways to Give
Appreciated Securities or Real Estate: Gifts of appreciated securities and real property may provide important tax advantages to donors who have held assets for a long period of time. The full market value of such gifts may be deductible as a charitable contribution. In the case of restricted or closely-held stock, real estate or other unusual assets, the proposed gift may require an appraisal, review by Foundation counsel and approval by our Board of Directors.
Testamentary: There are many ways to remember the Foundation in a will, thereby achieving a lasting purpose and reducing the taxable portion of an estate. The Foundation may be named as the residual beneficiary, as the recipient of a specified gift or contingent bequest, or as the ultimate recipient of the assets of a charitable remainder trust.
Life Insurance: The Foundation may be named as the owner and beneficiary of a previously existing or new life insurance policy. The donor receives an immediate deduction, which is usually approximately equal to the policy’s cash surrender value. All premium payments made by the donor thereafter may also be deductible.
Charitable Remainder Trust: A donor may wish to make a contribution to charity, but may need all of his or her income for current and future expenses. The donor can leave property to the Foundation at death or give the assets now, subject to a retained income interest. Through deferred giving techniques, a donor can satisfy charitable goals now and continue to receive income. Payment from such a trust can be made to a donor, donor’s spouse, or after the donor’s death some other beneficiary. Deferred gifts provide important income and estate tax savings.
Charitable Lead Trust: This type of trust names the Foundation as the initial beneficiary, with the Foundation’s interest terminating at a time specified by the donor. The trust then continues for the benefit of, or terminates in favor of, one or more individuals, such as children, grandchildren, relatives or others. There is usually a significant tax benefit under this plan. A charitable lead trust can be helpful for a donor who does not need present income, but wishes to leave the asset of the trust to heirs.
Individual Retirement Accounts: Donors may designate Taos Community Foundation as the beneficiary of their Individual Retirement Account. This is an excellent way for donors to make a gift to charity of the asset that is usually the most heavily taxed.
Foundation Assets: Private foundations may find it practical and economical to transfer all or part of their assets to a named fund within Taos Community Foundation. The purpose can continue as before with the added advantages of public charity status and professional staff to review and process applications, file federal tax returns and perform other administrative tasks. This arrangement eliminates the foundation’s excise taxes and can result in dramatically reduced administrative costs and increased tax savings for donations of appreciated property, which results in substantial benefits for charitable beneficiaries. There is also the satisfaction of knowing that a permanent organization is in place to administer the fund in perpetuity. Click here to download the instructions for transferring assets. [35kb DOC]
Consult Your Advisors
We encourage you to consult with qualified counsel regarding your plans and options for financial, tax, and estate planning before making a gift. State laws govern many of these principles, and TCF does not offer legal, financial, or tax advice.
All conversations with prospective donors and their advisors are held in confidence and without obligation. For more information, or to discuss a gift tailored to your needs, please call at 505.737.9300 or [ email ].
