Giving to HACF
Tax laws can be quite complex and we recommend you consult with your tax advisor before making any charitable gifts. Board members of the Helena Area Community Foundation would be pleased to meet with you and your tax advisor to discuss these ideas and other options for giving to your local community foundation.
Here are seven ways to give to the Helena Area Community Foundation:
1. Cash/Check This is by far the easiest way to give to charity. Cash gifts are 100% tax deductible and significant cash gifts can reduce your taxable estate.
2. Marketable Securities The gift of appreciated stock to the community foundation provides you with a charitable contribution of the fair market value of the stock. This allows you to benefit charities, avoid capital gains tax on the appreciated value of the stock, and reduce your taxable estate.
3. Life Insurance Policies A life insurance policy is an excellent tool for charitable giving. The gift may provide a current federal income tax deduction, as well as a Montana tax credit. Ownership of the policy is transferred to the community foundation, and upon the death of the insured the proceeds are added to the endowment.
4. IRA You can save income and estate taxes by naming the Helena Area Community Foundation as the beneficiary of your IRA or qualified retirement plan. You may still receive distributions from these accounts during your lifetime. The balance in the accounts is paid to charity at your death.
5. Charitable Remainder Trust This is a wonderful method for making a planned gift to the community foundation. By establishing a charitable remainder trust, you can provide lifetime income for yourself, spouse or others, reduce your taxable estate and deduct a portion of the gift as a charitable contribution currently. This type of gift can also qualify for a Montana tax credit. Because it is more complex, this method is best suited for gifts of at least $100,000.
6. Charitable Gift Annuity Similar to a charitable remainder trust, this vehicle is less complex. It is a simple agreement between you and the community foundation whereby you give assets to the foundation, and in exchange for the assets the foundation agrees to pay you a guaranteed life income. The income is based on your age at the time of the gift. You may take a current income tax deduction for a portion of the gift and this type of gift may qualify for a Montana tax credit.
7. By Will or Living Trust Charitable bequests allow you to leave a lasting gift to the community foundation while reducing your estate tax burden. You can leave a specific dollar amount, a percentage of your estate or specific real and/or personal property.