One of the principal advantages for donors who give through The DuPage Community Foundation is flexibility. To this end, the Foundation offers donors a variety of tax-effective ways to make gifts and achieve their charitable goals.
Cash:
Cash is the easiest way to contribute to the Foundation and will qualify for the maximum allowable tax deduction.
Marketable or Closely Held Securities:
Appreciated stocks and bonds may be given to the Foundation, allowing donors to deduct their current market value as a charitable contribution and avoid capital gains tax on the appreciation.
Real Estate:
Real estate may be given to the Foundation at its current market value allowing the donor to receive a full charitable deduction and avoid capital gains tax on the appreciation.
Life Insurance:
Life insurance can be used to create a major gift for the Foundation in one of two ways. First, the donor can transfer ownership of a policy to the Foundation and receive a current income tax deduction in the year the transfer is made. Second, the donor while retaining ownership of the policy, can name the Foundation as beneficiary of the policy.
Retirement Plans:
Donors can use an IRA or other retirement assets such as a 401(k), Keogh, or 403(b) to establish a new fund or contribute to an existing fund.
Bequests:
Bequests to the Foundation allow a donor's charitable intentions to be carried out in perpetuity and can significantly reduce the estate taxes otherwise payable upon his or her death. This ensures that the donor provides a lasting legacy for the causes about which he or she cares most.
Transfer from an Existing Private Foundation:
Administering a private foundation under IRS rules can be burdensome and expensive. Transferring the assets into a donor-advised fund at The DuPage Community Foundation provides a cost-effective alternative for administering these funds well into the future.
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Retain Income from a Charitable Gift:
There are many ways a donor can make a charitable gift and still receive income for life or for a specific period of time. Through these methods, donors can retain income for themselves and their spouses while obtaining deductions on current income, estate and gift taxes. The following are two examples:
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Charitable Remainder Trusts:
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Charitable Gift Annuities:
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This type of deferred gift can be created so that the donor or other beneficiary receives a lifetime income. At the death of the income beneficiary, the remainder of the trust passes to the Foundation to accomplish the charitable purposes specified by the donor.
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The Foundation offers competitive yields to individuals who make current gifts but retain a lifetime income. A portion of these gifts may be tax-deductable, and income is guaranteed.
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Charitable Lead Trusts:
Provide income to a fund at the Foundation for a set number of years for such charitable purposes as the donor has specified. Then, at the end of that period, the remaining principal of the trust and any accumulated appreciation is distributed to children, grandchildren or other named beneficiaries, often with significant tax savings.