Gift Types

Outright Gifts: Cash, property and stocks can be used to make gifts to establish or add to a fund. When individuals donate property or appreciated or closely held stocks, they may be eligible for a tax deduction based on the fair market value and they may also avoid capital gain and estate taxes.

Bequests: Naming the Central Minnesota Community Foundation as a beneficiary in a will is often the easiest way to make a significant gift. In addition, a gift will often reduce estate and transfer taxes.

Life Insurance: If a donor wishes to name CMCF as the sole or partial beneficiary of a life insurance policy, the charitable proceeds of the policy may avoid both income and estate taxes. Another option is to transfer ownership of a policy to CMCF. By choosing this option, donors may take an immediate income tax deduction approximately equal to the policy's surrender value.

Retirement Plan Assets: Using IRAs and other retirement plan assets is a far-sighted and thoughtful way to make a charitable contribution. It provides a donor a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes. Naming CMCF as the beneficiary of a retirement plan (including IRAs, 401(k)s and profit-sharing plans) can eliminate estate and income taxes, if the gift is structured properly.

Gifts That Help You Now, Help Your Charities Later

A donor makes an irrevocable transfer of assets to your family fund at CMCF and in return receives a lifetime payment for a specified beneficiary (the donor, spouse, children or friends). Upon the death of the beneficiary, the assets are used for the charitable purposes of CMCF. The donor receives a current income tax charitable deduction for the remainder value of the charitable gift. These gifts, known as life income gifts, include the following:

Charitable Remainder Trust: Cash or property is transferred to a trust, which pays the beneficiary either a variable income equal to a fixed percentage of the trust's fair market value as determined each year or a fixed annual amount. Upon the death of the beneficiary, CMCF receives the remaining assets assuring that they will be used for the purposes specified by the donor.

Charitable Gift Annuities: Cash or other property is contributed to CMCF in exchange for a commitment to pay the donor, or other beneficiaries, a specified annual amount for the remainder of the beneficiary's life.

Deferred Gift Annuities: A deferred gift annuity is the same as a charitable gift annuity, but the payments of income are delayed until a pre-determined time.