Charitable gifts are categorized into three categories depending on whether you wish to give now or later:
- Outright Gifts are transfers of cash, real estate, securities, or other assets.
- Deferred Gifts are gifts planned through your last will and testament, estate gifts, or trust. A gift by will can name a specific property, a certain cash amount, or a percentage of an estate. (Download sample bequest language here.)
- Life Income Gifts are immediate gifts that provide you with a lifetime income. Life Income Gift plans, including charitable trusts and charitable gift annuities, can provide attractive tax advantages and increase your retirement income.
What to Give
How and what you give depends on what you hope to accomplish with your donation. Arkansas Community Foundation staff, in partnership with your professional advisor, can help you consider the different advantages of giving.
* We recommend contacting your professional advisor to discuss which asset would be best for you to give.
|What You Can Give*||Advantage|
|Cash||Cash gifts allow individual donors to claim a current tax deduction of up to 100% of adjusted gross income through 2021 (due to a provision in the COVID Relief Legislation).|
|Publicly Traded Securities||Gifts of publicly traded securities and mutual fund shares qualify donors for an immediate charitable deduction of the full fair market value (average high/low on date of gift) and an exemption from capital gains tax on the appreciation. This online tool makes donating your securities simple. It can help you identify the correct transfer form, help you fill out the necessary fields, and provide clear instructions for submitting the form to your brokerage. Click here to get started.|
|Life Insurance||Gifts of life insurance can be made now or can be deferred. By donating a policy directly, you can qualify for deductions on future premium payments.|
|IRA Distributions||Unlike regular IRA distributions, a Qualified Charitable Distribution is excluded from taxable income. Keeping your taxable income lower may reduce the impact to certain tax credits and deductions, including Social Security and Medicare. Using this secure online tool, you can fill out the forms from your IRA custodian in just a few minutes, or print out the forms and fill them out offline, to complete your distribution to Arkansas Community Foundation.|
|Retirement Assets||Charitable contributions of retirement plan assets, including IRA Qualified Charitable Distributions, allow you to reduce or eliminate income and some taxes while simultaneously providing for the causes you support.|
|Real Estate||Donating commercial or residential real estate entitles the owner to a tax deduction for the property’s full fair appraised market value while also avoiding capital gains tax.|
|Timber or Crops||Gifts of timber or crops are also eligible for different types of tax savings.|
|Charitable Gift Annuities||When you establish a charitable gift annuity you will receive dependable, fixed income for life, an immediate income tax deduction for a portion of your gift, and a portion of your annuity payment will be tax-free.|