Ways To Give

The Community Foundation of Southeast Kansas has the ability to offer a variety of giving methods for our donor’s benefit. Donations can be made during your lifetime or by a bequest.  Your professional advisor or our staff can suggest ways to structure and time your contributions to qualify for the maximum tax advantage under federal law.  Your options include Outright Gifts, Remainder Gifts and Life Income Plans.  To explore which options may be best for you, read below, ask your financial advisor, or contact us.

Outright Gifts

You can make a gift of cash, stocks, bonds, real estate, or other assets to the Community Foundation of Southeast Kansas. Your gift qualifies for maximum charitable benefit under state and federal law.

 

 

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% of the donor's adjusted gross income in any one year.

 

 

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 market value is deductible as a charitable contribution up  to 30% of your adjusted gross income. The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciation portion of the gift.  Gifts of closely held stock enjoy the same tax benefits with publicly traded stock.

 

 

Life Insurance - Life Insurance policies also can be used as charitable gifts.  If you name the 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.

 

 

Remainder Gifts

Many donors choose to leave charitable assets upon their death.  After assuring that their loved ones have been cared for, donors can use a variety of assets, such as pension plans, life insurance or the proceeds from the sale of a house, for charitable purposes.

 

 

Bequests

You can establish or add to your named fund in your will or trust through a bequest.  Your gift can be used to accomplish almost any charitable goal:

 

  • Creating an endowment for a particular charitable organization
  • Leaving a family legacy, which allows children to continue their involvement in charitable grant-making
  • Making scheduled grants for several causes that you support during your lifetime

 

Pension Plan Beneficiaries

A retirement plan is one of the best types of assets to transfer to charity because it produces taxable income.  Most assets an heir inherits are free from income tax.  However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit sharing plan, 401(k) plan or IRA.  If you are going to make a charitable bequest, it is usually better to transfer taxable assets subject to income tax to your fund at the Foundation, and to transfer the assets not subject to income tax to heirs.

 

 

For large taxable estates, the combination of estate and income taxes will frequently exceed 75% of the total amount - even more if the generation skipping transfer taxes are triggered.  At a cost to your heirs of only 25% of the fair market value of these types of assets, you could apply 100% of the assets to your charitable fund to accomplish your specific charitable objectives.

 

 

Life insurance beneficiaries

Perhaps you would like to contribute the proceeds of a life insurance policy to help the community, but you are not yet ready to give up ownership of the policy.  By naming a community foundation only as beneficiary, you retain ownership of the policy and have access to the cash value as well as the right to change the beneficiary.

 

 

We encourage you to work with your lawyer or financial advisor as you consider these options.  Our staff is experienced in the use of these giving vehicles and is eager to work with you and your advisor in this process.

 

 

Life Income Plans

Charitable Gift Annuity - You can make a gift of cash or property to the Community Foundation of Southeast Kansas, get immediate tax benefits, and ensure that you or a loved one receive fixed quarterly or annual income payments for life.

 

Charitable Remainder Trust You can place cash or property in a trust that pays annual income to you (or another named beneficiary) for life. After your death, the remainder of the trust transfers to the Community Foundation of Southeast Kansas, and is placed in a charitable fund you’ve selected. You receive income tax benefits the year you establish your trust.

 

Charitable Lead Trust  You can place cash or property in a trust that pays a fixed amount to the Community Foundation of Southeast Kansas for the number of years you select. Once this period ends, the assets held by the trust are transferred to the beneficiaries you name. In some cases, you receive a substantial reduction in federal gift and estate taxes.

 

 

Whether you're a potential donor, a professional advisor, a local nonprofit director, or someone who's simply concerned about the future of Kansas, connecting with your local community foundation is the first step toward a better tomorrow for your community