Your clients can use a wide variety of assets to Start a Fund at the Community Foundation of Broward including:

Cash: 

Cash, usually in the form of a check, is an easy and convenient way to Start a Fund. 

Gifts of cash enable your clients to claim a current tax deduction of up to 50% of their adjusted gross income in any one year when they itemize deductions, with the excess, if any, carried forward for an additional five years.  Actual savings from gifts of cash depend on their tax bracket - the higher the tax bracket, the higher the deduction.

Download wire transfer instructions.

Securities: 

When using securities to Start a Fund, gifts of appreciated securities offer important tax advantages, as their full fair market value is deductible as a charitable contribution up to 30% of their adjusted gross income each year when they itemize deductions.  Like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years.  Your clients do not have to pay federal capital gains taxes on the appreciated portion of the gift.

Consider the following asset types from your clients:

• publicly traded stock or bonds (paper certificates or electronic transfers)
• closely held stock (see below)
• restricted stock
• partnership interests (including family limited partnerships)
• mutual funds

Download wire transfer instructions.

Closely Held Stock: 

An often overlooked asset to Start a Fund is closely held stock. 

Corporate owners frequently hold stock with a low cost basis that has significantly appreciated as the business has grown, often without having paid dividends along the way.  After obtaining an IRS-required independent appraisal you can give stock in your client's company to the Community Foundation. 

Then, either the corporation or a third party has the opportunity to purchase the stock.  You save taxes twice: first with a personal income tax charitable deduction for the fair market value of the stock, and also by avoiding capital gain tax on the appreciation.

Real Estate: 

The Community Foundation of Broward can accept a gift of a house or other personal residence, farm, commercial buildings, and income-producing or non-income-producing land to Start a Fund.

A gift of real estate that your client has owned for more than a year entitles you to a tax deduction based on the fair market value of the property - while allowing you to avoid capital gains tax.  While this type of gift must be approved in advance, unencumbered real property is an excellent option.

Another consideration is the Life Estate Reserved gift, which allows them to give their home as a charitable contribution now - immediately obtaining a tax benefit; while retaining the ability to live in the home during their lifetime.

Personal Property: 

The Community Foundation accepts gifts of personal property, such as artwork and jewelry to Start a Fund.

Retirement Plan Assets (such as IRAs): 

For a gift through your client's estate, retirement plan assets are often the best to give because they are so heavily taxed if left to heirs.  Income and estate taxes can easily consume over 65% of the value when left to heirs.  By naming the Community Foundation as the remainder beneficiary of these assets, your clients can leave a very efficient legacy.

Special IRA to Charity Rollover Opportunity

During 2008 and 2009, holders of traditional IRAs who are at least 70 1/2 years old can make direct charitable transfers of up to $100,000 each year, free from Federal income tax.  This is an excellent opportunity to establish or add to your Fund at the Community Foundation of Broward.

Life Insurance: 

If you have a client that no longer need their life insurance policy, gifting it can provide an easy option for their philanthropic legacy.  Simply add the Foundation as a beneficiary, or make it the sole beneficiary of a policy they no longer need.  When they transfer ownership of a cash value policy to the Community Foundation of Broward, your clients become eligible for a charitable tax deduction based on its current value.

 

The Community Foundation of Broward offers a variety of giving options – including the ability to set up charitable funds in your clients’ names. If they desire, they can even be involved in the distribution of the grant dollars generated by their funds.

Their donations can work forever. When your clients establish endowed funds, the gift principal never gets spent. It’s carefully invested, and the earnings are used to benefit the community through grants.

Your clients can work with our professional grantmaking staff to suggest ongoing uses for their funds – targeting the issues they care about most.

The Community Foundation of Broward offers your clients a simple, powerful, and highly personal approach to giving.