When you open a fund at the Amador Community Foundation, or wish to add to it at any time in the future, the Foundation can accept the following assets:
Cash, usually in the form of a check, is an easy and convenient way for you to support worthy causes. Gifts of cash allow you to claim a current tax deduction of up to 50% of your adjusted gross income in the year you make the gift 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.
Gifts of appreciated securities offer important tax advantages since their full fair market value is deductible as a charitable contribution up to 30% of your adjusted gross income 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 or state capital gains taxes on the appreciated portion of the gift. After the Foundation liquidates the securities, the full value of the gift is available to support your charitable goals.
The Foundation can accept gifts of publicly traded stock, publicly traded bonds, closely held stock, restricted stock, partnership interests, (including family limited partnerships), and mutual funds.
Ordinary Income and Short-term Capital Gains Property: Such gifts qualify for a Federal income tax deduction at cost in the year the gift is made. They are deductible up to 50% of the donor’s adjusted gross income, and any excess contributions can be carried over for up to five years if necessary.
Amador Community Foundation can accept a gift of a house or other personal residence, farm, commercial building or other unimproved property. A gift of real estate that you have owned for more than a year entitles you to the same Federal tax advantages as those for gifts of securities (a tax deduction for the fair market value of the property) while allowing you to avoid paying capital gains tax.
The Foundation will consider gifts of personal property, such as artwork and jewelry.
Naming the Foundation in your will or living trust is a popular way to make a charitable gift. A charitable bequest can be a specific dollar amount, a percentage of your estate, or what remains after other bequests — including those to family members — are made. Or your will can specify that your heirs receive lifetime income from your estate, with the remainder going to the Foundation for charitable purposes. If you choose, the bequest can flow into a donor-advised fund for your children to carry on your family’s philanthropy. The Foundation can provide sample language for naming the Amador Community Foundation in your bequest.
RETIREMENT PLAN ASSETS
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 account balance at death. By naming the Foundation as the remainder beneficiary of these assets, you can maximize your gifts and minimize estate taxes.
For those whose need for life insurance has decreased, making a gift of an unneeded policy can be a convenient and effective way of meeting your charitable goals. When you transfer ownership of a cash value policy to the Amador Community Foundation, you become eligible for a charitable tax deduction based on its current value. Changing the beneficiary of your life insurance can also be a part of your estate planning.