Your Clients Can Donate Cash, Securities, Property and More
Outright gifts to Arkansas Community Foundation can be deducted on federal income tax returns. For gifts of appreciated property, clients also avoid the capital gains tax. However, client deduction for gifts of property held for one year or less is limited to cost basis.
Outright gifts may include:
- Publicly traded securities
- Closely held securities
- Tangible personal property
- Real Estate
- Life Income Gifts
Life Income Gifts
Life income gifts are “gifts that give back.” A Charitable Lead Trust allows your client to give the income from assets placed in trust to the Foundation for a term of years, while retaining the principal for the donor, heirs or third party on the termination of the trust.
Charitable Remainder Trusts
Charitable Remainder Trusts make it possible for your client to make an irrevocable gift of cash or property, while retaining an annual income stream from the trust. When you use this form of gift, your clients are allowed an income tax deduction and there is no capital gains tax for gifts of long-term appreciated property.
Charitable Gift Annuity
A Charitable Gift Annuity is a contract between your client and Arkansas Community Foundation that gives you the opportunity to make a charitable gift and secure a stream of income for life. Your client can transfer assets to the Community Foundation in exchange for a commitment from us to pay the client, and a second annuitant if he/she chooses, a fixed and guaranteed payment for the remainder of their lifetimes.
Clients often make charitable gifts by will. Whether made on an outright, residual or contingent basis, a gift through your client’s last will and testament may be the best choice. Their estate is allowed a deduction for the amount contributed through Arkansas Community Foundation in this way. Unlike other forms of giving, a gift by will is revocable – that is, the will can be changed as circumstances change.
What Professional Advisors Are Saying
"I always say you don't have to be a Walton to have a foundation. I tell my clients the things the big boys do can be done by them through Arkansas Community Foundation."
- Randall Drake, attorney, Mountain Home