Types of Assets that may be used today or in your estate plans: Cash Cash gifts (made by check or credit card) are fully deductible up to 50 percent of your adjusted gross income in the year the gifts are made. If your total gifts exceed this limit, you may carry the remainder of the deduction forward for up to five years. Appreciated Securities Outright gifts of publicly-traded or closely-held stock that you have owned for more than one year give the added benefits of receiving an income tax deduction for the full fair-market value of the stock and avoiding capital gains tax. Gifts of appreciated securities are deductible up to 30 percent of your adjusted gross income. Unused deductions can be carried forward for up to five additional years. Real Estate If you own property that is not subject to a mortgage and has appreciated in value, using it as a charitable gift may be an attractive option. You can claim an income tax deduction based upon the fair-market value of the property, avoid all capital gains taxes and remove that asset from your taxable estate. The Foundation has expertise to help donors navigate the complexities of real estate gifts. Private Foundation Private foundations may make a direct gift or transfer all or part of their assets to the Foundation. The original donor's identity and goals are preserved, and the donor or other designees can participate as fund advisors. In addition, the Foundation handles all administrative, management and reporting obligations. Life Insurance You can contribute a life insurance policy to the Foundation by simply naming us as the beneficiary. If you name us as owner and beneficiary, you will receive an income tax deduction for the cash value of the policy and future premiums paid each year. Retirement Plan Assets Designating your Fund or the Foundation as the beneficiary of your retirement plan assets - including IRAs, 401(k)s and profit-sharing plans - is a forward-thinking way to make a charitable contribution and provides a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes, which can be eliminated by naming your Fund at the Foundation as the beneficiary. Planned Giving Options: Minnesota Community Foundation offers several ways to use assets in your estate planning, providing a variety of tax advantages and ensuring your philanthropic legacy for the future. Bequests A bequest in your will or trust is a simple way to make a charitable gift. You can direct your bequest to Minnesota Community Foundation as an unrestricted gift or establish any type of charitable fund administered by the Foundation. You can name the Foundation as the residual beneficiary of your estate or as the recipient of a specific gift (either dollar amount or percentage). Bequests are fully deductible for federal estate tax purposes. Life Income Gifts Life income gifts provide an opportunity to support your charitable interests while providing you and/or a loved one an income stream for life or a specific number of years. By irrevocably transferring cash or appreciated assets to the Foundation through a life income gift, you receive an immediate income tax deduction and an income stream for your designated beneficiaries. Types of life income gifts include: Charitable Remainder Trust A minimum of $100,000 in cash or property is transferred to a trust, which pays one or more income beneficiaries either a fixed annual amount or a fixed percentage of the trust's fair-market value as determined each year. Upon the death of the beneficiaries, the remaining assets will create a permanent endowment fund to support the charitable purposes you specify. Charitable Gift Annuity A minimum of $10,000 in cash or other property is contributed to the Foundation in exchange for a commitment to pay the donor or other income beneficiaries a specified annual amount for life. At the death of the last annuitant, the remaining assets will be used to create a permanent endowment to support the charitable purpose you have specified. Retained Life Estate You can contribute to a private residence, vacation home or farm while retaining the right to live in and use the property. You receive a charitable deduction in the year the gift was made. Charitable Lead Trust The charitable lead trust provides income to the Foundation for a specific period of time, then distributes the assets to the donor or other heirs. This type of gift can provide significant estate and/or gift tax savings.