As a donor, we encourage you to consider the full menu of giving vehicles to realize your philanthropic goals. We can help you establish and make additions to your fund using both current and deferred gifts.
Current Gifts
Appreciated property (publicly traded stock, closely held stock, real estate)
Contributing stocks, bonds, mutual funds, or real estate to your fund may provide you with an income tax deduction based on the fair market value of the gift and eliminate all capital gains taxes. This would allow you to make a substantially greater gift (typically between 45-70%) than otherwise would have been possible for the same out-of-pocket cost.
Tax-Free Donations from IRAs after Age 70 ½
Annual withdrawals from traditional retirement accounts are required after age 70 ½, and the penalty for skipping a required minimum distribution is 50% of the amount that should have been withdrawn. If you’re inclined, you can avoid income tax on your required withdrawal by donating your money directly to a qualifying charity like the IBMA Foundation. Individuals may transfer up to $100,000 per year directly to eligible charities.
Deferred Gifts (Planned Gifts)
Numerous deferred gift options exist within the IBMA Foundation. For all gift plans we strongly encourage you to meet with your professional advisors prior to executing any gifts. The options are described below.
Bequest
A bequest to the IBMA Foundation is as simple as adding a codicil to your will. This is the most common planned gift, and it may provide you with valuable estate tax savings.
Bequests can be in the form of:
- a stated dollar amount or specific property,
- a percentage of the estate, or
- a portion or all of the residue.
The following language may be appropriate for a bequest: “I give and bequeath_________ percent of my adjusted gross estate (as that term is defined in the federal estate tax laws) to the IBMA Foundation, Inc., subject to its governing instruments, policies and procedures, as amended from time to time.” OR: “This gift shall be devoted to the general charitable purposes of the IBMA Foundation, Inc. as set forth in its governing instruments, as amended from time to time.”
Private Foundations
Your existing private foundation may also be converted into your donor advised fund or into a supporting organization. This enables you to retain the name and purpose of the private foundation while alleviating the administrative and compliance functions.
Life Insurance
One of the simplest ways to make a significant contribution is to give a life insurance policy. You may do this in a number of ways. You may give a policy no longer needed, take out a new policy, or name the IBMA Foundation a beneficiary of an existing policy. A gift of life insurance may provide valuable income and estate tax savings.
Charitable Gift Annuity
A charity gift annuity allows you to contribute assets and receive an income tax charitable deduction. In turn, we will provide you with a guaranteed income for life (the payout varies depending upon your age and other factors.) This vehicle can ease the worries of outliving financial resources by providing a high income coupled with numerous tax advantages.
Charitable Remainder Trust
A Charitable Remainder Trust (CRT) allows you to establish a trust for the ultimate benefit of your fund at the Foundation, while retaining the income generated by the assets given. A CRT may help you eliminate capital gains taxes, reduce or eliminate estate taxes, improve lifetime cash flow, and when coupled with an asset replacement trust, will provide for heirs as well.
Pooled Income Fund
A pooled income fund works much like a mutual fund. You receive a variable amount of income each year and these assets go ultimately to the IBMA Foundation. This type of fund is especially attractive if you would like to contribute less than $50,000, receive a variable annual income and still receive tax benefits of a charitable donation.
Charitable Lead Trust
This trust allows you to provide income to your fund at the Foundation for a fixed number of years. The remainder is then returned to you or to your named beneficiary—your heirs, for example.
Life Estate
If you own valuable property that you would like to use during your lifetime but make arrangements to give to the IBMA Foundation upon death, you may receive a current income tax deduction and future estate tax deduction.
Other
The IBMA Foundation can devise a philanthropic plan that may include various gift assets, such as closely held stock (private or restricted stock), qualified or non-qualified stock options or family limited partnership interests.
For More Information, please contact Nancy Cardwell, Executive Director, IBMA Foundation (6150 260-4807, info@bluegrassfoundation.org, or write to: IBMA Foundation, 4206 Gallatin Pike, Nashville, TN 37216.
IBMA Foundation, 4206 Gallatin Pike, Nashville, TN 37216