Benefits for Your Clients
Below are some examples of the benefits your clients can experience by establishing endowments through their local community foundation:
Year-end tax planning
By recommending that your client establish a fund through the local community foundation to counterbalance potential tax consequences, you will have shown your client how to get an immediate tax deduction as well as how to make a meaningful charitable investment in the community.
Retiring in comfort
Perhaps you have a client who would like to give back to the community but is concerned about having enough money for life. This person may benefit from establishing a charitable gift annuity with a community foundation. These annuities can provide a solid income stream during your client’s life and yet be customized to meet charitable goals for his or her estate.
Preserving an estate
With your help, your client can tailor his or her estate to reduce or avoid estate taxes. By suggesting that your client direct dollars for local benefit, your client can reduce his or her taxable estate through planned gifts, such as a charitable bequest to a community foundation.
Sale of a business
Help your client reduce capital gains tax via structured charitable gifts and planned giving strategies through the local community foundation.
Substantial IRA/401(k) assets
Partner with the local community foundation to help your client evaluate the most beneficial distribution of assets to minimize taxes — giving more to your client's heirs while at the same time pursuing your client's charitable goals.
Alternative to a private foundation
Contact your client's local community foundation for information about a donor-advised fund as a simple and cost-effective alternative to establishing a private foundation. The community foundation can provide a comparison showing advantages and disadvantages of private foundations, donor-advised funds, and supporting organizations.
Closely held stock
A donor-advised fund or planned gift at a community foundation may make your client eligible for an income tax deduction measured by the fair market value of appreciated stock (less any planned gift value).
Sale or disposition of highly appreciated stock
Sometimes charities are too small to accept direct stock gifts. Establishing a fund at the local community foundation with a gift of appreciated stock allows your client to receive a tax deduction on the full market value, avoid the capital gains tax that would otherwise arise from sale of the stock, and direct the funding to benefit your client's philanthropic choice.