Outright Gifts

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 client's 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 gifts of publicly traded stock.

Gifts of mutual fund shares have become an increasingly popular choice, especially in light of the dramatic growth of mutual funds as an investment vehicle. Giving mutual fund shares has the same beneficial effect as giving appreciated stock.


Real Estate
The Kalamazoo Community Foundation can accept a gift of a house or other personal residence, farm, commercial building, and income producing or non-income producing land. A gift of real estate that your client has owned for more than a year entitles them to a tax deduction for the fair market value of the property, while allowing your client to avoid paying capital gains tax.


Life Insurance
Life insurance policies also can be used as charitable gifts. If your client names the Community Foundation as the owner and beneficiary of an existing or new life insurance policy, they receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by your client thereafter will be deductible as a charitable contribution.