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Planned Giving Opportunities

Simply put, planned giving is giving wisely. Just like anything else, there is more than one method of reaching a goal. If a goal is to be attained, success is more certain with careful planning. In the case of a gift, the gift can be maximized or attained quicker with a planned and concerted effort.

Since every gift is unique and personal, it is important to match the donor with the appropriate giving vehicle. A giving vehicle is a method or a means or structuring a gift. Donors can take comfort in knowing professional advisors and Foundation staff are knowledgeable concerning the various giving vehicles which will not only facilitate a gift but maximize the impact of the gift.

Giving Vehicles

Simple Bequest

For those wanting to make a lasting gift to a charity, a bequest is a simple way to accomplish the gift. Naming a particular Fund or organization as a beneficiary in a will is quick and easy. A specific amount can be designated but a common practice is to designate a percentage of the estate as a bequest to the Fund. Besides cash, you can also give appreciated stocks and other assets. Click here for simple bequest language.

Trusts

Giving through a Charitable Remainder Trust allows the donor to receive income for the rest of his or her life and know that whatever remains will benefit the nonprofit of their choice.

There are different types of Trusts to accomplish this and all can be structured to accommodate the financial goals of the donor. As a rule, the donor first determines the amount of the gift, which can be cash, appreciated stock, real estate or other assets. An immediate charitable tax deduction is received for the charitable portion of the trust. The trust pays the beneficiary, which can be the donor, regular income payments. Upon the beneficiary’s death, the remaining assets of the trust transfer to the designated charity. Foundation staff work with the donor’s legal counsel to structure trusts.

Types of Trusts

  • CRAT – charitable remainder annuity trust
  • CRUT - charitable remainder unitrust
  • NICRUT –net income unitrust
  • NIMCRUT-net income CRUT with makeup provision
  • FLIPCRUT-CRUT that begins as a NICRUT or NIMCRUT but changes to a standard unitrust upon occurrence of specific event.

Browse our Professional Advisors page for more information.

Charitable Gift Annuity

The ideal solution for those with the desire to set up a planned gift but also needing financial security is a charitable gift annuity. A gift annuity works well for persons over 65 and ranges between $10,000 and $50,000. Once the amount of the gift is determined, a fixed stream of income is calculated combined with a deferred charitable gift. The donor also receives an immediate tax deduction for the charitable portion of the gift. Payments are received to the donor quarterly. Upon death, the charity can be designated to receive a gift.

With a gift annuity, the percent of interest is determined on a sliding scale which factors the age of the donor. Persons older than 85 years old can realize interest rates in the 8% to 9% range.

Appreciated stock can also be used to establish the gift annuity.

Insurance

A donor can name a charity as the beneficiary of a life insurance policy. This can be a paid-up policy or a policy requiring continued premiums. A tax deduction for the approximate cost or fair market value, whichever is less, will be received. If the policy is paid up, the tax deduction can be immediate. If not, continued tax deductions can be claimed on premium payments made directly or through gifts to a Fund set up at the Community Foundation.

This giving tool works especially well for couples that may have purchased policies years ago with children in mind. Now, with those children as self-supporting adults, the policy may no longer have its original purpose. The purpose can be redirected and benefit a charity.

Gifts of Real Estate

Real Estate can be a means of fulfilling a goal to give a substantial gift to a charity. In some cases a gift of real estate can help avoid estate taxes and minimize or eliminate burden placed on heirs. Charitable gifts of real estate range from personal residences and vacation homes to rental properties, farmland and commercially developed land. The Community Foundation of Gaston County has a real estate acceptance policy. Once the gift is deemed acceptable, the gift can be directed to a charity or to a separate fund at the Community Foundation.

Individual Retirement Accounts

A very tax-efficient way to give to a charity is to designate the charity as the beneficiary of your retirement plan. In the case of a 401 (k), 403 (b) or IRA, tax rates upon death could be very high and heirs may have to pay estate tax on income earned. For these reasons, retirement plan assets are many times the first to be designated as a bequest.

Tools for Giving

Four Approaches to Giving.indd

Comparing four approaches to giving

Discover the benefits of working through your community foundation 

Community Foundation Donor Advised Fund

Commercial Gift Fund

Community Foundation Supporting Organization

Private Foundation

Items to consider

 

Donor Involvement

Donor recommends grants to qualified nonprofit groups. Grants are approved by community foundation board of directors.

Donor recommends grants to qualified non- profit groups. Grants are approved by trustees of the gift fund.

Community foundation and donor work together to appoint board. Supporting Organization board often controls invest- ments and grantmaking.

Donor appoints board, which controls investments and grantmaking.

Tax Status

Public charity.

Public charity.

Public charity.

Private charity.

Income Tax Deductions for Gifts of:

 

 

 

 

Cash

Up to 50% of adjusted gross income.

Up to 50% of adjusted gross income.

Up to 50% of adjusted gross income.

Up to 30% of adjusted gross income.

Appreciated stock

Fair market value up to 30% of adjusted gross income.

Fair market value up to 30% of adjusted gross income.

Fair market value up to 30% of adjusted gross income.

Fair market value up to 20% of adjusted gross income.

Real estate and closely held stock

Fair market value up to 30% of adjusted gross income.

Fair market value up to 30% of adjusted gross income.

Fair market value up to 30% of adjusted gross income.

Cost basis up to 20% of adjusted gross income.

Grantmaking Support

Professional staff is available to help identify and assess grantees, provide input on community needs, and verify nonprofit status of groups.

Varies.

Professional staff available to help identify and assess grantees, provide input on

community needs, and verify nonprofit status of groups.

Donors must arrange and support their own grantmaking and monitoring structure.

Start-up Costs

 

Initial costs

 

Minimum contribution

 

 

None.

 

Thousands of dollars.

 

 

 

None.

 

Thousands of dollars.

 

Costs kept to a minimum through collaboration with community foundation.

 

Typically millions of dollars.

 

Several thousand dollars for legal and accounting expenses and filing fees.

 

Typically millions of dollars.

Administrative Requirements

 

 

 

 

Ongoing costs

Pooled administration; annual fee

Varies.

Costs kept to a minimum through collaboration with community foundation.

Several thousand dollars for legal and accounting expenses and filing fees.

Reporting

Community foundation handles reporting

Financial institution handles reporting.

Annual 990 tax form must be filed.

Annual 990 tax form must be filed.


Mailing Address:
P.O. Box 123 Gastonia, NC 28053

Street Address:
1201 E. Garrison Blvd, Gastonia, NC 28054

Directions

Phone:
704.864.0927

Fax:
704.869.0222

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