Ways to Give
Gifts to the Community Foundation are as varied as the donors and the needs of the community for which they are intended. Your financial, tax or estate planner, assisted by the staff at the Community Foundation, can help you select which gift best suits your situation.
Your planned gift options can include:
Gifting Shares of Stock
Everybody wins when you make a gift of appreciated stock to the Community Foundation of the Northern Shenandoah Valley. Your gains are put to good use. Your gift of stock is reinvested in your community, and it qualifies for an immediate tax deduction based on the full market value.
Giving appreciated stock through a Community Foundation is popular among a range of givers – individual investors, families, entrepreneurs and even groups of friends who have formed investment clubs.
By giving stock through your Community Foundation, you can avoid capital gains taxes that would be due as a result of its sale and establish a charitable fund that benefits the local causes and organizations you care about most. With gifts of appreciated stock, your stock market earnings translate into community impact, so you get a more rewarding return on your portfolio. You can set up a scholarship; support special programs for at-risk youth, senior citizens, or other people in need; address environmental concerns; or support the arts.
The actual impact of such a gift on your personal taxes should be reviewed with your tax advisor.
Thank you for considering gift shares of stock. Below are the instructions for transferring the stocks to the Community Foundation of the Northern Shenandoah Valley’s account, which is administered by The Mason Companies. Please call us direct if you have any questions.
From Another Brokerage Account
- To make a gift from your brokerage account to our brokerage account, send the Stock Gift Letter to your broker. Your broker will then send the requested shares to the Community Foundation of the Northern Shenandoah Valley’s account to The Mason Companies via DTC (which is the technical term for electronically transferring shares of stock). Please advise us of the gift so that we may accept the shares.
- This is for gifts of stock only, excluding mutual funds.
With Stock Certificates in Your Possession
- To make a gift using stock certificates in your possession, please print the Stock Gift Letter B and the Stock/Bond Power.
- Follow the stock gift delivery instructions in transferring your stock certificates. These instructions will ensure trouble-free transferring.
- Complete the Stock/Bond Power according to the stock gift delivery instructions.
- Complete the Stock Gift Letter B and attach with the Stock/Bond Power to your shares of stock. This letter must be Signature Guaranteed, a service provided by your local bank.
NOTE: Do not complete the back of the stock certificate. Use one stock/bond power per certificate and ship using certified or overnight delivery. Also be sure to include the Community Foundation of the Northern Shenandoah Valley’s account number (931030129 ) at The Mason Companies on the face of each stock certificate.
- Please provide the Community Foundation with a copy of both Stock Gift Letter B and the fronts and backs of all stock certificates so we may accept the shares. You can mail a copy to: CFNSV, P.O. Box 2391, Winchester, VA 22604 or e-mail copies to us at firstname.lastname@example.org.
Charitable bequests generate much of the philanthropy at work today to make our region an even better place to live. By designating the Foundation as a beneficiary of your will or living trust you can create a permanent fund for the future. You can name a specific dollar amount, a percentage of your estate or the remainder of it. You can choose the Type of Fund that works best for you. Possibilities include supporting specific charities, addressing concerns such as the arts or human services, providing scholarships or leaving a gift that helps many nonprofits. All this and you get an estate tax charitable deduction too.
Talk with your estate planner about including the Community Foundation in your will or living trust.
Charitable Gifts of Annuity
A charitable gift annuity is an easy way for you to make a charitable gift during your lifetime and still receive income. You and one other person may receive immediate or deferred income through the charitable gift annuity.
To start an annuity you must:
- Be at least 60 years of age
- Make an irrevocable gift of at least $25,000
A charitable gift annuity lets you:
- Support your favorite charities and causes through the remainder of your annuity
- Receive an immediate charitable income tax deduction
- Lock in fixed, partially tax-free payments for life
Charitable Lead Trust
A Charitable Lead Trust (CLT) distributes income to your charitable fund for a period of years or during your lifetime. Then, the assets return to you or surviving family members. A CLT can allow you to make a significant gift to charity and transfer assets to family members while saving taxes.
It is even possible to set up a lead trust that will allow you to transfer assets to your family with zero transfer taxes. The IRS assumes that a lead trust is only earning at the current low federal rate. If the actual investments of the trust produce a higher return than the payments made to the Community Foundation over the term of the trust, then the full value of the trust may be transferred to your family with zero gift tax.
Charitable Remainder Trust
Charitable Remainder Trusts (CRTs) provide for the eventual transfer of property to charity after paying income to one or more non-charitable beneficiaries.
- A Charitable Remainder Annuity Trust (CRAT) makes fixed income payments to the beneficiary.
- A Charitable Remainder Unitrust (CRUT) provides a variable payout equal to a percentage of the trust’s market value as determined at the end of each year.
- Charitable Remainder Trusts are often appealing to donors with appreciated assets producing little or no income, such as real estate or securities. This is because the assets can be sold without capital gains tax and invested to provide a high income stream.
The benefits of a charitable remainder trust include:
- A charitable income tax deduction for the present value of the remainder gift to charity;
- No capital gains due on the sale of appreciated assets within the trust;
- The opportunity for increased income;
- Reduced estate tax liability;
- Asset diversification and professional trust management;
- The opportunity to make a sizable gift to one or more charities.
You may establish a Charitable Remainder Trust in any amount with a trustee of your choosing. The minimum contribution for the Community Foundation of the Northern Shenandoah Valley to serve as trustee is $200,000. When we serve as trustee, the CFNSV must be named the sole charitable beneficiary at the termination of the trust.
IRA and Retirement Plan Assets
Did you know that 60%-65% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis (such as real estate and stock) and give the retirement assets to the Community Foundation. As a charity, we are not taxed upon receiving an IRA or other retirement plan asset.
Your retirement assets may be transferred to the Community Foundation by completing a beneficiary designation form provided by your plan custodian. If you designate the Community Foundation as beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
Life insurance provides a simple way for you to give a significant gift to charity and establish your legacy, with tax benefits that you can enjoy during your lifetime.
You can make a gift when life insurance is no longer needed for personal financial wealth replacement by either giving a paid-up policy or continuing to pay premiums. You may receive a number of tax benefits, including reduced estate and income taxes. And, if you choose to continue paying premiums through your Community Foundation, you will be entitled to a charitable contributions deduction of up to 50 percent of your adjusted gross income.
You can also designate the Community Foundation as the beneficiary of your life insurance policy. You will continue to own and can make use of the policy during your lifetime. The policy will be included in your taxable estate when you pass away, but your estate will benefit from an estate tax charitable deduction for the value of the gift to us.
Making a charitable gift of real estate through your community foundation can help you turn your property gains into community good. Gifts of real estate range from personal residences and vacation homes to rental properties, farmland, and commercially developed land – the value of which may exceed that of any other asset you own. With the help of your Community Foundation, you can use real estate to make a bigger charitable difference than you thought possible, avoid estate taxes, and minimize or eliminate burden placed on your heirs.
A gift of real estate must be professionally appraised to establish its fair market value. It is also assessed for compliance with our acceptance policies to make sure its resale will provide the appropriate value to community.