Using the Foundation as your partner in charitable giving offers a full range of philanthropic vehicles available under the law. Whether it's a cash gift or readily marketable securities, insurance policies, or real estate, the Foundation can help with your particular giving strategy.
Outright Gifts During Your Lifetime: may consist of cash, stock, real estate, or virtually any other asset. A gift of appreciated securities is an attractive option because the donor's income tax deduction is based on the full fair market value of the asset with no capital gains tax obligation. A fund can be established with a minimum of $5,000. Some donors start with even less, building up to that amount with annual contributions. Donors receive a tax deduction for the current year. You can contribute to your fund whenever it is convenient and the income generated by the principal each year is available to support your charitable goals.
Bequest: A gift in the donor's will or trust effective at the donor's death is an option for establishing a fund or adding to an existing fund. Frequently, the asset selected for this gift is from the donor's IRA or other qualified retirement plan. Because these assets have a maximum income tax obligation, they are a good source for funding charitable gifts.
Life-Income Gift: There are many ways to make a gift now that offers lifetime income benefits to the donor or other beneficiary, with the remainder value going to establish a new fund or add to an existing fund. These gift vehicles can address a wide variety of financial and personal estate planning objectives. A common example is a donor wanting to convert a low basis, low income-producing asset into a significantly higher income stream by putting the asset into a charitable remainder trust. Typical vehicles for this are charitable gift annuities and charitable remainder trusts.
Charitable Lead Trusts: Part of your estate is placed in a trust which distributes the annual income to the Arlington Community Foundation for a designated period of time. At the end of that time, the trust terminates and the principal in the trust is returned to you or your heirs. Income has been used for charitable purposes so there are savings in income, gift or estate tax.
Life Insurance: A life insurance policy can be used to make a future gift to the Foundation. By assigning ownership of life insurance policies to the Foundation you may receive a federal income tax deduction in the amount of the policy's present value. The proceeds are not taxable as part of your estate. You can also name the Arlington Community Foundation as the beneficiary of an existing policy.
Retirement Plan Assets (such as IRAs): Excess pension benefits, IRAs, and other deferred arrangements provide special opportunities for charitable giving. There are important tax advantages which you should discuss with your financial advisor.