Ways To Give
By check, cash or credit card, immediate gifts are welcomed and put to use for the immediate charitable purposes of the Three Lakes Community Foundation. As a 501(c)(3) organization, contributions are tax deductible. Special arrangement can also be made in the form of stock gifts with added tax benefits.
Bequest by Will or Revocable Living Trust
A gift made through a will or revocable living trust represents the donorís final act of caring for the people and causes that were important in his or her life. A bequest may take the form of a specific dollar amount, a stated percentage of the estate or all the estate that remains after final expenses and other payments. For those whose estates are large enough to be subject to estate tax, a charitable bequest provides a charitable deduction that can reduce or eliminate the tax.
There are permanent endowment options from which to choose starting with contributions to the general endowment fund of the Three Lakes Three Lakes Community Foundation. All distributions come from investment earnings. The principal remains within the Endowment producing a permanent source of funding strictly from investment earnings. At higher levels, an individual endowment fund may be established for general or targeted distributions. (Also, ask about the Acorn Fund as a way to begin to fund your own endowment.)
Charitable Gift Annuity
A contractual arrangement in which the donor makes an irrevocable contribution to the community foundation, and in return, the foundation agrees to pay to the donor, and/or other beneficiary(ies), a fixed income for life. Annuity payments may begin immediately or be deferred until a later time. After the last beneficiary dies, the funds remaining from the annuity will be used for the important work of the Three Lakes Community Foundation. Because the arrangement is irrevocable, the donor is eligible for a current calculated charitable deduction and partial deductions on distributions taking into account amounts and the age(s) of the income beneficiaries. Annuities may be funded with cash or marketable securities.
Creating a Charitable Lead Trust
A Charitable Lead Trust pays income to the Three Lakes Community Foundation for a period of years before transferring its assets to the donor's family or other individual(s) of the donor's choosing. Because of the charitable income interest, gift or estate taxes on the transfer will be reduced or eliminated.
Life Insurance Policy
An otherwise unneeded policy can be donated, making the Three Lakes Community Foundation the owner and beneficiary. In this case, the donor will receive a charitable contribution deduction approximately equal to the cash value. As owner of the policy, the Three Lakes Community Foundation can determine whether it is best to cash in the policy and use the proceeds immediately or hold it until the death benefit is paid. If the donor pays for the continuing premiums to the Three Lakes Community Foundation, they will be treated as tax deductible contributions. It is also possible to name the Three Lakes Community Foundation as the beneficiary, but not owner of a policy.
Donors may name the Three Lakes Community Foundation, subject to spousal consent, if applicable, to receive all or a percentage of funds held in an IRA, 401(k) or other tax-deferred retirement account. Upon the death of the donor, the designated amount will be transferred immediately to the Three Lakes Community Foundation without going through probate and avoiding income taxes that would have to be paid on amounts passing to private individuals. Donors age 70-1/2 or older may benefit additionally by making Charitable IRA rollovers.
Tangible Personal Property
Certain contributions of collectibles, such as art, coins, gems, automobiles and boats, along with other tangible items, can be advantageous to the donor and the foundation. Special rules apply to the value of the tax deductions available for these gifts, and professional advice should be obtained to ensure the proper deductibility and valuation.
Donating real estate may include establishing a retained life estate through a gift of real property. Real property is an excellent way to support the Three Lakes Community Foundation, especially when the land value increased. As with securities, if the donor has owned the property for more than one year, a charitable contribution can be taken for the full increased value, with no tax due on the gain. Real estate can be given outright, or in the case of a farm or personal residence (including a vacation home), the donor can reserve the right to use and enjoy the property for life before it passes to the Three Lakes Community Foundation. In certain situations, it makes an excellent asset with which to fund a charitable remainder trust.
Charitable Remainder Trust
A Charitable Remainder Trust is an irrevocable trust that pays income to the donor, and/or other beneficiary(ies) for life or for a term of years. Income payments may be fixed or vary with the investment performance of the trust, depending on the choice made by the donor at the time the trust is established. When the trust terminates, remaining funds help the Three Lakes Community through the Foundationís charitable efforts. Similar to an annuity, the charitable remainder trust offers a current charitable contribution deduction that is based on the term of the trust, the rate of income payment and the original amount placed in trust. Typical assets for funding charitable remainder trusts include cash, marketable securities and real estate.