Communities of Coastal Georgia

Outright gifts can include cash, securities, real estate, and life insurance.

Gifts of cash
A cash gift is the simplest way to establish a named fund or to add 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.

Securities
Gifts of appreciated securities (bonds and stock, including stock in closely held companies) also may be used to establish a fund or add to an existing fund. Such gifts often provide important tax advantages. Their full fair market value is deductible as a charitable contribution up to 30 percent of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years. The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as with publicly traded stock.

IRA assets

The Pension Protection Act of 2006 allows for individuals, who have reached the age of 70 ½ to exclude from income up to $100,000 in retirement plan assets if it is contributed to a qualifying public charity.  This Act provides a unique opportunity to use retirement plan assets to make a considerable gift to an organization or cause.  This Act has been extended through December, 2009 and must be made from an IRA and not from any other type of retirement plan.  In addition, the Act permits each spouse to gift up to $100,000 from each of their respective IRAs, for a total tax-free contribution of up to $200,000.  The transfer can count towards any required minimum distributions and incurs no federal income tax.

The new law makes no change to the rules that govern charitable requests of IRA assets, either outright to charities or to deferred giving arrangements.  Such transactions have qualified for favorable income tax consequences in the past and will continue to be an attractive planning strategy in the future.  The new law only changes the rules for lifetime charitable gifts from IRAs.

Real estate

More wealth is held in real estate than in stocks and bonds combined, approximately 44 percent of all capital value in the U.S.  The Community Foundation cuts through the cost and complexity of real estate giving and creates new opportunities for donors as part of an estate or financial plan.

Life insurance
Life insurance policies also can be used as charitable gifts. If you name our community foundation as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution.