We’re here to help you accomplish your charitable giving goals. We can work with you -- and your legal, tax, or financial advisor if you prefer -- to explore the benefits and implications of different giving strategies. Below are just a few tips regarding which assets may be most advantageous to give and other ways to make a difference with your contributions.
Note: Be sure to ask your tax advisors to analyze your situation fully.
Give Cash
Cash contributions are deductible up to 50% of your adjusted gross income (AGI) if you itemize deductions. If you give more, you can carry deductions forward up to five more years. The date of the gift is the date of the postmark on the envelope, or the day you hand-deliver your cash or check.
Give Securities
If you give long term appreciated stock, you gain two ways: your gift is deductible at fair market value and you avoid capital gains tax. Your deduction is limited to 30% of your Adjusted Gross Income, but can be carried forward up to five more years. If you want to give using depreciated stock, sell it first, use the capital loss, and then give the cash. If you give mutual funds, be sure to allow plenty of time -- three weeks or more – for them to be transferred before the end of the year. For stock, allow at least a week.
In order to ensure that your stock gift is received by your fund and appropriately acknowledged to you for tax purposes, please contact us directly before initiating a gift to make sure you have proper delivery instructions and that we know what securities and quantities to expect.
Create a Life Income Gift
If you want to give but also retain an income stream, a life income gift is a smart choice. You get a partial charitable deduction and you still receive cash flow, often at a higher rate than you would get by investing. Call us to explore possibilities for using a Charitable Remainder Trust or Charitable Gift Annuity.
Consider a Lead Trust
Today's low interest rate environment makes it possible to make a substantial future gift to your family at minimal estate or gift tax cost and make annual distributions to charity or your donor advised fund at the same time. Call us or your legal or financial adviser for details.
Think about Real Estate
Real estate can make a smart gift. You avoid capital gains tax, receive a charitable income tax deduction, and can turn illiquid property into cash flow. You can transfer your home to your fund at The Minneapolis Foundation and still live in it for life.
Limited Opportunity for Charitable IRA Distribution
Individuals age 70-1/2 and older can transfer up to $100,000 from an individual retirement account (IRAs) to charity without incurring federal income taxes today or estate and income taxes in the future. This gift cannot be made to a donor advised fund.
Leave a Legacy - Become a Community Builder
Your fund and your name can live on forever if you include The Minneapolis Foundation in your estate plan. You can provide for the well being of the community in many ways, and if you leave a bequest to a Donor Advised Fund, your loved ones can continue to recommend grants. If you have included The Minneapolis Foundation or your Fund in your estate plan, or if it is your intention to leave an endowed fund when you are gone, you already qualify as a Community Builder.
Contact Us
To learn more about how we can help you achieve your goals through charitable planning, please contact your Foundation representative.
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