Planned Giving Options

What Options Do Your Clients Have?

The Community Foundation for Monterey County recognizes that each donor has unique philanthropic goals and objectives. Drawing on experience and creativity, we can help design gift planning solutions that address donor-specific needs—both charitable and financial. Below are some examples to consider.

Bequest by Will or Trust

A bequest is perhaps the easiest and most flexible way to have a lasting impact. The CFMC can be named as a beneficiary in a will or living trust, designating the gift of a specific dollar amount, a particular asset, a percentage of an estate, or the remainder of an estate once all other bequests have been fulfilled. For recommended language, click here.

With a bequest, donors maintain complete control of their assets during their lifetime and can save on income taxes, capital gains taxes, and estate taxes.

Beneficiary Designation

CFMC can be named the beneficiary of many financial resources. These can include a donor’s IRA, 401(k) and other retirement plans, bank accounts, commercial annuities, life insurance policies, and other assets. It can be as simple as making CFMC a full or partial beneficiary of these accounts. In most cases all that is needed is to complete a revised beneficiary designation form with the company holding the donor’s assets. A beneficiary designation can reduce income taxes and possibly estate taxes for a donor’s loved ones.

Charitable Remainder Trust

A charitable remainder trust provides either a fixed or variable income for life or a term of years. At the end, the trust assets are a generous gift to CFMC. There can be significant tax benefits depending on the circumstances.

Tax-Free IRA Gift

A Qualified Charitable Distribution (QCD) is a terrific way to make a tax-free gift to CFMC using a qualified retirement plan. This gift may also satisfy the required minimum distribution (RMD). If a donor is 70 1⁄2 or older, they can rollover up to $100,000 per year from their IRA as a charitable gift. The IRA administrator must transfer their gift directly to CFMC from a traditional or Roth IRA account. While the gift will not be taxed as income to the donor, they will not receive an income tax charitable deduction.

Creative Gift Strategies

Using noncash assets can save on income tax and possibly eliminate capital gains tax. Here are a few types of assets that can be used to make a gift:

Publicly Traded Strategies

Making a gift of any publicly traded stocks, bonds and mutual funds that a donor has owned for more than one year can provide significant tax savings by avoiding capital gains taxation and providing them with a charitable deduction.

Real Estate

A gift of real estate, transferred now or through an estate plan, can provide the donor with significant tax savings. A gift made during a lifetime can lighten the burden of an asset the donor no longer wants or uses, such as a second home or vacation property. Donors can even give their residence now and continue to live in it for the rest of their life.

Closely Held Stocks and Businesses

By making a charitable gift of shares in a closely held business, donors can deduct the appraised value of the shares if they have owned them for at least one year.

We are happy to partner with advisors to determine the best strategy for any donor. Please contact us for more information or learn more.