Together, we can create a strategic plan for your charitable giving.
Ways to Grow Your Donor-Advised Fund
In addition to Akron Community Foundation’s sound investment strategies that will help your fund grow over time, we can also accept a variety of assets to grow your impact right now. And there are more options than you might think.
Surprisingly, cash is not always the best gift. See which gifts make the most sense for your situation:
Cash gifts may be deducted up to 60 percent of adjusted gross income for income tax purposes. Contributions over that limit can be carried over for up to five years. You can also make contributions from your credit card. You’ll get the tax benefit now, plus the benefits from rewards on your card, and you can wait to pay it off later.
Publicly Traded Securities
You receive a double benefit if the stock has appreciated: an immediate charitable deduction for the fair market value of the securities donated, and exemption from capital gains tax on the appreciation. The fair market value of contributed securities can be deducted up to 30 percent of the donor’s adjusted gross income. Contributions over that limit can be carried over for up to five years.
Mutual Fund Shares
Like gifts of publicly traded securities, gifts of mutual fund shares are deductible up to the full fair market value.
Closely Held Stock
The contributed value per share must be discounted from the value per share for a controlling interest, as determined by a qualified independent appraisal. There can be no agreement restricting or requiring the resale of the stock by the charitable recipient. If the company offers to redeem the shares, however, the charity can take the proceeds or reinvest them for a better return. The company does not reissue the shares; all shares outstanding increase in value.
Many people find that the protection offered by life insurance policies is no longer needed later in life. A life insurance policy can become an ideal tool for charitable giving. If the policy is paid up, you will receive an immediate tax deduction in an amount equal to the policy’s cash surrender value.
Gifts of real estate can include a house, apartment building, farm, vacation home, commercial buildings, and income-producing or non-income producing land. There are procedural steps that will take place prior to acceptance, but once accepted, Akron Community Foundation has a separate LLC set up specifically to handle these types of gifts for you.
Some donors may prefer to give their automobile, antiques or jewelry to a charitable cause. Akron Community Foundation can accept these gifts, too. Any item valued at $5,000 or more is subject to IRS guidelines and must be appraised by an impartial party.
Giving Later: Tools for Planned Giving
In addition to growing your fund now, we also have many options to help you leave a charitable legacy.
Through planned giving, you can:
- Make tax-deductible planned gifts that earn annual income
- Make planned gifts that help protect certain assets
- Ensure the best assets (tax-wise) go to friends and family members
- Guarantee your charitable wishes are carried out
From bequests to charitable gift annuities, we can work with you (and your advisor, if you’d like) to determine which type of planned gift will work best for your situation.