The Minneapolis Foundation can accept a wide variety of assets to allow you the flexibility to establish funds in ways that are most advantageous.
- Cash / Checks / Credit Cards
- Publicly Traded Securities and Mutual Fund Shares
- Closely Held Stock
- Real Estate Interest in a Limited Liability Partnership
- Life Estates
- Life Insurance Policies
For details, please review the descriptions and instructions below.
Cash / Check / Credit Card
Cash, usually in the form of a check, is a convenient way for you to support worthy causes in the community. Gifts of cash enable you to claim a current tax deduction of up to 50% of your adjusted gross income. You can claim deductions for larger gifts for up to five subsequent years.
If you’ve already established a fund with us, we also accept gifts by credit card.
Contributions of appreciated securities or mutual fund shares can produce significant tax savings, while allowing you to be more philanthropic than you may have thought possible. This is because you receive a double benefit:
- An immediate charitable deduction for the full fair market value of the donated assets
- Exemption for any capital gains tax on the appreciation
- The fair market value of contributed securities can be deducted up to 30 percent of your adjusted gross income
In addition, if the amount is larger than you can use in one year, you can carry the surplus forward for up to five subsequent years.
For transfer instructions, please contact Karen Florez at (612) 672-3841.
Closely Held Stock*
If you own a closely held or family business, you are likely to encounter several restrictions that make it difficult to establish a private foundation or family foundation. However, a partnership with a community foundation is a cost-effective way to maximize your philanthropic options while minimizing your tax liability. A community foundation can be particularly helpful in the following instances:
- Passing ownership of your company to children or key employees while not straining available assets and liquidity
- Selling your company and planning to minimize estate taxes
- Getting equity out of your company to provide income
- Creating a family philanthropic program using the assets of your business
Gifts of real estate can include a house, apartment building, farm, vacation home, commercial buildings and income-producing and non-income-producing land. You can make an outright gift of real property now or through your estate, or use it to fund a charitable remainder trust that provides income to you or your children.
A gift of real estate that you have owned for more than a year entitles you to a tax deduction for the full fair market value of the property while allowing you to avoid capital gains tax.
Gifts of real estate typically require several procedural steps that include a site visit to the property, a qualified appraisal, a preliminary title report and an environmental assessment, and must be approved in advance by our Gift Acceptance Committee.
Interest in a Limited Liability Partnership*
If you own limited partnership interests, such as investment or business partnerships, you may be able to contribute them to the Foundation. Individuals holding family limited partnership interests can do so, as well. While donations of these and other more complicated assets require careful planning, we have the flexibility and expertise to accept them.
You can benefit today from the future gift of a home or vacation home. A life estate gift allows you to continue to live in the home for life and enjoy a current income tax deduction. A community foundation will ultimately sell the property without having to go through probate and use the proceeds to support the charitable purposes you care about most.
Life Insurance Policies
A life insurance policy can become an ideal tool for charitable giving because many people find they no longer need policies they purchased earlier in their lifetimes. Gifting insurance policies is simple. You start by irrevocably assigning your insurance policy to the foundation, which you also name as a beneficiary of the policy. You can make annual tax-deductible contributions to cover the policy's annual premium. Or, if the policy is paid up, you will receive an immediate tax deduction in an amount approximately equal to the policy’s cash surrender value.
* These gifts require the prior approval of our Gift Acceptance Committee. For details, contact Mary Ellis Peterson, Gift Planning Officer, at (612) 672-3859 or email@example.com.