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GIFTS WE ACCEPT
CASH AND CASH EQUIVALENTS
Cash, usually in the form of a check or credit card, is a convenient way to give.
If you itemize your deductions on your federal income tax return, you may take a charitable gift deduction for the amount of your gift. If you give your gift to an endowed fund that supports a nonprofit in Iowa, you may be eligible to receive the Endow Iowa Tax Credit. If you can’t take the entire deduction in the first year, you may carry the balance forward into the next five years. When savings bonds, certificates of deposit and other ordinary income assets are gifted to North Lee Community Foundation, you will not have to pay tax on the gain in those assets. You can name the North Lee Community Foundation as the primary beneficiary, contingent beneficiary or as a partial beneficiary.
Gifts can be made in memory or honor of a loved one, or to commemorate a special milestone or event. The gifts can be made to an existing fund or you may choose to establish a special fund. Otherwise the gifts are directed to North Lee Community Foundation Grant Fund Endowment to support grants in the Tri-State Area.
You can transfer ownership of appreciated securities (stocks, bonds or mutual funds) owned for at least one year to North Lee Community Foundation. You will receive a deduction for the average value of the security on the day of the transfer. When you contribute long-term appreciated securities to North Lee Community Foundation, you have two options:
Sell the securities and contribute the proceeds to North Lee Community Foundation (and pay any associated capital gains tax).
Contribute the securities directly to North Lee Community Foundation – we receive the full proceeds from the sale, and you avoid capital gains tax. The full proceeds from the sale of the shares may be placed in your named fund or any named fund at North Lee Community Foundation for charitable giving purposes. You may claim a charitable income tax deduction in the year in which the gift is made. If you can’t deduct the full fair market value of the gift in the first year, you may carry the balance forward for the next five years. If the securities have been owned less than one year, the charitable deduction is based on your cost basis in the security.
North Lee Community Foundation will consider the acceptance of personal property on a case by case basis and all such contributions must be approved by the Board. In making a decision, North Lee Community Foundation will consider the difficulty and expense of selling the items, the expertise required to sell the items, issues of storage interim to sale, and the general overall benefit to North Lee Community Foundation.
GIFTS OR GRAIN
Donating a gift of grain to North Lee Community Foundation is a simple way to make a lasting difference. The value of the grain can be used to start an endowed fund in the name of your family, for a specific Iowa nonprofit organization, or for the North Lee Community Foundation Grant Endowment Fund to meet ongoing community needs. By giving grain to North Lee Community Foundation, you avoid including the sale of the grain in your farm income. Although a charitable income tax deduction is generally not available to you, the avoidance of declaring it as income, and the possibility of a 25 percent Endow Iowa Tax Credit, are significant benefits. You can deduct the cost of growing the crops, which typically results in saving self-employment tax, federal income tax and state income tax. You can benefit even if you don’t itemize your deductions and take the standard deduction.
You may be looking for a way to make a significant gift to help further our mission A bequest is a gift made through your will or trust. It is one of the most popular and flexible ways that you can support our cause.
Life insurance policies can be used as charitable gifts. If you name the North Lee Community Foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution. You can then work with the Foundation to determine how the proceeds of your insurance policy can be used for charitable endeavors in your areas of interest.
Double taxation on retirement plan withdrawals decreases their value for your heirs. Consider providing other assets to heirs and naming the Community Foundation as the beneficiary of your retirement accounts. You can save taxes and preserve your hard-earned assets for the good of your community.
Contact us to discuss how we can assist you with your personal philanthropy goals.
Roger R. Ricketts
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