Newton Community and Healthcare Foundation: Giving

Newton Ccommunity and Healthcare Foundation

he rewards are boundless. For you, your family and those you wish to help. Below are some of the most frequently-asked questions about giving through a foundation.

Why should I give through a community foundation?
What types of assets can I give?
Can I designate how my gift will be used?
What can I do with my gift?
Can I give a gift that will provide me an income for life?

Why Should I Give Through A Community Foundation?

These are just a few advantages of giving through a community foundation:

Giving is simple and offers you flexibility.
By joining others with a common vision, you can make a difference in your community.
The impact of your gift is felt far into the future ... over and over again.
You can benefit several charities through a single gift.
You realize maximum tax advantages as allowed by law.
Funds are managed by professionals.
You can draw upon the experience and expertise of our estate planning professionals.
The foundation is publicly accountable for all funds and activities.

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What types of assets can I give?
Can I designate how my gift will be used?
What can I do with my gift?
Can I give a gift that will provide me an income for life?

What Types Of Assets Can I Give?

Your gift can take many forms. It all depends on which is best suited to your goals and assets.

Cash...is easy, direct and fully tax-deductible as allowed by law. You can pay by check, credit card or bank electronic funds transfer.

Stocks, bonds and mutual funds...enable you to avoid the tax on any appreciation, yet still receive a tax deduction for the full market value. The foundation, as a tax-exempt charity, may sell the securities and avoid taxes on the appreciation.

Real estate...land or buildings can be given in a number of ways and allow you to avoid taxes on the appreciation. You may even give a fractional, undivided interest in a building or land. The donor must obtain a qualified appraisal to establish the gift value.

Personal property...such as automobiles, art work, jewelry, valuable collectibles, antiques and more can be donated to give you a charitable tax deduction for the full fair market value.

Bequests through your will / Or a living trust...can be a specific dollar amount, property or a percentage of your estate. "Newton Community & Healthcare Foundation, Inc." must be named as the charitable beneficiary. A signed Donor-Advised Memorandum is required to name the charities and endowment funds that will benefit from your bequest.

Life insurance...is an affordable way to give a significant amount. You can make the foundation the beneficiary of an existing policy or a new policy you may choose to purchase. A variety of options are available, all of which provide tax advantages and allow you to leverage your dollars for maximum impact.

Retirement plans...can designate the foundation as the beneficiary of your IRA, 401(k), 403(b), Keough or other qualified plans. This type of gift usually is one of the most tax-efficient for your estate. "Newton Community & Healthcare Foundation, Inc." must be named as the charitable beneficiary. A signed Donor-Advised Memorandum is required to name the charities and endowment funds that will benefit from your bequest.

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Why should I give to a community foundation?
Can I designate how my gift will be used?
What can I do with my gift?
Can I give a gift that will provide me an income for life?

Can I Designate How My Gift Will Be Used?

Yes! The choice is yours:

Unrestricted...allowing the foundation board to be flexible and proactive in meeting the changing needs of the community
Designated...for a specific organization, fund or charitable purpose of your choice
Donor-advised...allowing you to give now, yet make a recommendation on distribution in the future
Field of interest...enabling you to specify an area of interest, such as education or the arts.

Per IRS regulations, Newton Community & Healthcare Foundation reserves the variance powers which allow it to modify any restriction or condition on the distribution of funds for any specific charitable purpose or to any specified organization. This is exercised if, in the sole judgment of the NCHF board of trustees, such restriction or condition becomes, in effect, unnecessary, incapable of fulfillment, or is inconsistent with the charitable needs of the community or area served. Such powers are defined in the foundation's Articles of Incorporation, Paragraph 3-1-F.

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Why should I give to a community foundation?
What types of assets can I give? | What can I do with my gift?
Can I give a gift that will provide me an income for life?

What Can I Do With My Gift?

You have many options. You may:

Make an immediate designated gift

Give to an existing fund

Establish your own fund

Establish a lifetime income plan

See details below:

Make an immediate designated gift
You may make a gift and designate how it will be used. The foundation then makes a grant to the charity of your choice in the near future.
Give to an existing fund
You may give to several types of foundation funds that serve a variety of charities:
1. Permanent endowments...the principal is invested in perpetuity and only the income generated by the capital is distributed annually to designated organizations.
2. Community Gift funds...all money contributed to these non-endowment funds is available to be paid out in grants.
Establish your own fund...
You may choose to establish a fund of your own, as either an endowment or a non-endowed gift fund.

In either case, your income tax deduction is available at the time of the contribution to the fund, even if the distribution to the final charity is made in future years.

You might wish to establish an endowed fund for a scholarship or to support a particular program at your church or school, public or private. The purpose can be defined to support a particular field of interest, such as education, health care, literacy, or children's issues.

The fund may be named in memory or honor of a loved one or influential person in your life.

Contact the foundation at or nchf.info@newmedctr.org for more information.
Establish a lifetime income plan...
and benefit your charities. Lifetime income plans can be configured in countless ways and must be custom-made to fit your assets, goals and charitable intentions. Generally, they provide you an assured annual income for the rest of your life. The remaining principal is donated to the designated charities at your death.

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Why should I give to a community foundation?
What types of assets can I give?
Can I designate how my gift will be used?
Can I give a gift that will provide me an income for life?

Can I Give A Gift That Will Provide Me An Income For Life?

Charitable gift annuity...provides a set income for life and immediate income tax benefits when the donor makes an irrevocable gift to the foundation. Upon the death of the donor, the remaining value of the gift goes to the foundation's unrestricted endowment or to charities or funds recommended by the donor. You may submit a Gift Annuity application to begin this process.

Charitable remainder trust...also provides an immediate tax deduction when assets are placed into an irrevocable charitable remainder trust. In return, the donor receives income for life or for a specific number of years. Income can be based on a fixed percentage of the trust, which is valued each year, or a fixed annual dollar amount.

Deferred payment charitable gift annuity...functions much like an IRA and provides an immediate tax deduction. In exchange for an irrevocable gift, the foundation agrees to pay you a fixed annuity amount for life...starting one or more years in the future.

Charitable lead trust...provides significant estate and tax benefits. It is especially advantageous if you are trying to pass large sums on to your heirs. The donor places assets in a trust for a term of years, and income is paid to the foundation to be used as the donor recommends. When the term expires, the trust principal is distributed to the heirs.

It is important to consult with an estate planning professional to determine what approach is best for you. See your adviser or call Newton Community & Healthcare Foundation for information on free planned giving consultation services.