Year End Giving Tips 2008

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. Please call us to let us know your gift will be coming, so we can be sure it is credited properly to your fund.

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. For more information, contact Mary Ellis Peterson, (612) 672-3859 or mepeterson@mplsfoundation.org.

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. For information on estate plan gifts, please contact Mary Ellis Peterson, (612) 672-3859 or mepeterson@mplsfoundation.org.

Limited Opportunity for Charitable IRA Distribution

Again this year, because of legislation just recently passed, people age 70-1/2 and older can transfer up to $100,000 each from individual retirement accounts (IRAs) to charity without incurring federal income taxes today or estate and income taxes in the future. The transfer can even act as your minimum required distribution. This ends December 31st, 2009.

This opportunity expires at the end of next year, unless Congress enacts a new law.

Gifts to Donor Advised Funds, Supporting Organizations and private foundations do not qualify for special charitable IRA transfers, but gifts to the following kinds of funds do:

Community Improvement Fund - address a range of community needs.

Field of Interest Fund  - target gifts to causes you care about.

Legacy Funds - provide support for specific fields of interest.

Designated Fund - support one or more specific nonprofit organizations.

Custom Fund - establish a unique charitable fund that accomplishes your financial and philanthropic goals.

To learn more about the IRA Charitable Rollover or how we can help you achieve your year-end goals through charitable planning, please contact Mary Ellis Peterson at (612) 672-3859 or mepeterson@mplsfoundation.org or any of the contacts listed at page right.