WAYS TO GIVE
Greater Poweshiek Community Foundation offers many ways to give now or as part of your estate planning. We have experience working with individual donors, businesses, families, lawyers and financial advisors to achieve your philanthropic goals. If you’re not sure where to start, contact us and we can assist you to find a path forward.
What to Give
Greater Poweshiek Community Foundation can accept a range of assets and we can facilitate even very complex forms of giving. Most gifts to the Community Foundation qualify for maximum tax advantages under federal law. We are happy to work with you and your professional advisor to assess ways to maximize the value of your gift and its tax benefit.
- Publicly traded securities
- Appreciated stocks
- Mutual fund shares
- Real estate
- Retirement assets
- Minimum required distributions from IRAs
- Tangible personal property
Most gifts qualify for maximum tax advantage under federal law.
Starting a Fund
It is easy to establish your own named charitable fund at the Greater Poweshiek Community Foundation with these simple steps:
1. Determine what your charitable goals and purpose are.
2. Select the type of charitable fund that will best support your purpose. Our staff will outline your options and discuss advantages of each.
3. Select a name for your fund. You can choose your name, that of a family member, the name of a favorite cause or a name that allows you to remain anonymous.
4. Complete a fund agreement form. Our staff will help you complete a document that makes your intentions clear for the duration of the fund’s existence.
5. Make an establishing gift. See Ways to Give for the types of contributions you can make. You will receive a tax deduction when the gift is given.
6. Once your fund is established you may add to the fund at any time, in any dollar amount.
Donors can accomplish a range of charitable goals and financial benefits with legacy giving through Greater Poweshiek Community Foundation.
Including a charitable bequest in your will is a simple way to make a lasting gift to your community. When you make this gift through Greater Poweshiek Community Foundation, we establish a special fund that benefits the community or your designated cause which becomes your personal legacy of giving.
How it Works:
- You include the Community Foundation in your will as a bequest; we can help you or your attorney with recommended language.
- You determine the type of fund you would like to establish with your gift.
- Upon your death, we set up a special fund in your name, in the name of your family, or in honor of any person or organization you choose.
- Your charitable gift is excluded from your assets for estate tax purposes.
- Our board considers your charitable wishes and determines the areas of community need that would be most impacted by grants from your gift.
- Our board issues grants in the name of the fund you establish (if you prefer, grants can be made anonymously).
- We handle all the administrative details.
- Your gift can be placed into an endowment that is invested over time and exists in perpetuity.
Making a bequest to your community foundation is an easy way to transfer assets to charity. You can decide to do it at any age by adding to an existing will or drafting a new one. Doing so allows you to leave a legacy to your community, while enjoying the assets you need to maintain your current lifestyle. Plus, you are able to distribute some or all of your assets, tax free.
You can give cash, appreciated stocks, or other assets. Some of the most tax-efficient asset types to give through your will come from retirement plan accounts, since heirs would be taxed on the income in respect of the decedent (IRD). You can choose to give a stated dollar amount, a specific property, a percentage of your estate, the remainder after distributions to other beneficiaries, or you can make your gift contingent on certain events.
Earnings from your fund are used to make grants addressing community needs. Your gift — and all future earnings from your gift — is a permanent source of community capital, helping to do good work forever.
You can save significant taxes by contributing commodities such as corn or beans to Greater Poweshiek Community Foundation instead of making a cash contribution after selling the commodities.
When an agricultural producer transfers legal ownership of grain to a 501(c)(3) charitable organization such as GPCF before the commodity is sold, the producer will not realize taxable income from a sale, thus minimizing taxes. The producer is still able to deduct the entire cost of the production of the commodity on the producer’s Schedule F. Depending on the producer’s specific circumstances; savings may be realized on federal and state income tax and self-employment tax.
For example, a gift of 1,000 bushels of corn when the market price is $3.00 and the cost of production is $2.00 reduces taxable income by $1,000 ($1/bushel). The producer still receives a deduction for the costs of production. A typical farmer who does not itemize deductions on Schedule A might reduce his federal income tax by $150 (15% X $1,000), his state income tax by $60 (6% X $1,000) and self-employment (social security) tax by $141 (15.3% X $1,000 X 92.35%) for a total tax estimated savings of $351. A producer should consult with his or her tax advisor to determine whether a contribution of commodities is appropriate to his/her tax situation.
GPCF can help you make a gift of commodities to benefit your local community foundation fund and get the desired tax treatment. Please contact us for additional details.
For qualified retirement plans you can designate the Greater Poweshiek Community Foundation as the beneficiary.
You can provide for family and charity by setting up a charitable trust.
Donor Advised Funds
Donor Advised Funds established at Greater Poweshiek Community Foundation offer a local, simple, affordable, and lasting option for philanthropists to meet charitable and financial goals. Donor Advised Funds are an attractive alternative to establishing a private family foundation because they give donors flexibility to give charitably to a variety of causes annually without the burden of investing, record-keeping and managing. To explore Donor Advised Fund giving options, please contact us to start a conversation.