Permanence: By making a bequest in your will, making a direct contribution or establishing a fund within a community foundation, donors can contribute gifts of cash and appreciated property toward a permanent endowment. This enables their contributions to have long-term impact that will continue to meet community needs indefinitely.
Flexibility: Donors have many options for making donations. Donors may choose to only have the investment income distributed or the just the principal or a percentage of both. This flexibility allows the donors to work out their own individual planned giving programs with the Foundation.
Convenience: Because the legal apparatus is already in place, community foundations have appropriate forms available so that a fund can be established, and the tax advantages obtained, in a very short time.
Tax Savings: The Federal Tax Code provides significant benefit in the deductibility of gifts of appreciated property to community foundations. Gifts are deductible to the maximum extent permissible under current law.
There is a particularly significant benefit in the deductibility of gifts of appreciated property to community foundations. The full, fair market value of such gifts is deductible up to 30% of adjusted gross income. For example, if a donor contributes securities or property with a fair market value of $50,000 and a cost basis of $10,000, the full $50,000 value is deductible.
Low Administrative Costs: Because the Foundation manages a large number of funds, administrative costs and service fees for any one fund are minimized … meaning less administrative costs to the donor.