Ways to Give
Many people don’t consider themselves wealthy enough to create charitable funds or endowments, but in reality, any size gift can be significant when it aligns with your values and supports the needs of our community. The only question may be whether you should give now or give later.
You can start supporting the community now with an outright gift of:
A cash gift is the simplest way to establish a fund at the FM Area Foundation or give to an existing fund. Cash gifts are fully deductible up to 50 percent of the donor’s adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.
Gifts of appreciated securities (stock, bonds and most mutual funds) result in a charitable deduction for the full market value of the donated asset and minimize capital gains taxes. If you have held the securities for one year or longer, the current value generally is tax-deductible up to 30 percent of your adjusted gross income, with a five-year carryover if the gift amount is more than the 30 percent limit.
Gifts of real estate can include a house, apartment building, farm, vacation home, commercial buildings, and income-producing or non-income producing land. A gift of real estate you have owned for more than a year entitles you to a tax deduction for the fair market value of the property, and you avoid paying capital gains taxes.
When you name the FM Area Foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction that usually approximates the cash surrender value of the policy. All premium payments made thereafter are deductible as a charitable contribution.
You can give through your estate plan by designating the FM Area Foundation as the beneficiary of:
Including a charitable gift in your will is a simple way to make a lasting impact on the causes and charities you love. A gift may be made in your will or trust directing a gift to the FM Area Foundation, which will be used to create or support your charitable fund that benefits the community forever and becomes your personal legacy of giving. When defining your gift, you can specify that the FM Area Foundation receive a stated dollar amount, a specific piece of property, a percentage of your total estate, the remainder of your estate after distributions to other beneficiaries, or you can make your gift contingent on certain events. It is easy to do and allows you to use your assets while you are living and reduce the amount of estate tax paid by your estate.
Donating part or all of your unused retirement assets, such as your IRA, 401(k), 403(b), pension or other tax-deferred plan, is an excellent way to make a gift to the FM Area Foundation. If the retirement assets were given to your family, much of the value may be lost through estate and income taxes. By designating the FM Area Foundation as the beneficiary of all or part of your IRA (using a beneficiary designation form provided by your custodian), the full value of the gift is transferred tax free at your death and your estate receives an estate tax charitable deduction.
Many people find that the protection offered by life insurance policies is no longer needed later in life. At that time, a life insurance policy can become an ideal tool for charitable giving. A few steps need to be taken to donate a life insurance policy. You start by irrevocably assigning your insurance policy to the FM Area Foundation and naming the Foundation as the sole beneficiary. 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 equal to the policy's cash surrender value.
Giving through your estate plan enables you to maintain control of your assets during your lifetime and possibly give more than you ever thought you could.
These are examples of common ways to give, but there are many philanthropic vehicles. Our expert staff will work with you and your advisor to create effective approaches specifically designed for your unique giving and financial situation.
Ways to Give - A Comparison
|Starting a Donor-Advised Fund at the FM Area Foundation (FMAF)||Starting a Private Foundation||Giving Directly to a Favorite Charity||View the complete list of comparisons PDF|
|Initial Gift Minimum||$5,000 with intention to build to $25,000 within five years||$5-$10 million recommended||None|
|Administrative Support||Provided by FMAF professional staff||None, must hire private foundation staff||N/A|
|Tax Deduction Limits for Gifts of Cash*||50% of adjusted gross income||30% of adjusted gross income||50% of adjusted gross income|
|Tax Deduction Limits for Gifts of Stock or Real Property*||30% of adjusted gross income||20% of adjusted gross income||30% of adjusted gross income|
|Required Payout||None||Must expend 5% of net assets value annually||N/A|
*Any unused deductions may be carried forward up to five (5) additional years