What to Give

Outright Gift

An outright gift is a gift that you make right now, and is the easiest way to start a fund and begin giving immediately.

You can establish or add to any of the Community Foundation’s funds by contributing a variety of asset types during your lifetime. Outright gifts:

• generate the most beneficial charitable income tax deduction,
• remove the contributed assets from your estate for tax purposes, and
• allow you to enjoy the results of your philanthropy during your lifetime.

Cash and Non-Appreciating Properties

Gifts of cash and non-appreciating property qualify for federal income tax deductions at cost in the year the gift is made. The gift is deductible up to 50% of adjusted gross income, and any excess deductions can be carried over for up to 5 years if necessary. The higher your tax rate, the greater the tax savings.

Appreciated Securities and Real Estate

Long-term stocks, bonds, and real estate that have increased in value may be very appropriate for charitable gifts. You receive a deduction for the fair market value, and pay no capital gains taxes. This type of gift is deductible up to 30% of your adjusted gross income, and any excess deductions can be carried over for up to 5 years if necessary.

Bargain Sale

In a bargain sale, you sell appreciated property at a lower price than the fair market value to a charity, with the CFMC receiving the difference as a gift. You get a tax deduction for the gift portion of the bargain sale.

How It Works

An IRA Rollover to a fund at the Community Foundation is an easy way to reduce your tax burden and make a significant gift to support causes you care about. Each year, the IRS requires you to withdraw a certain amount (required minimum distribution) from your IRA whether you need the funds or not, and you pay income tax on every distribution you take.

If you are 70 1/2 or older, you can make a gift from your IRA account to the Community Foundation. Gifts made from your IRA (up to $100,000 per year) are not reportable as taxable income and qualify toward your required minimum distribution which can lower your income and taxes. Best of all, it’s easy. Contact us or your IRA administrator to see how you can do an IRA Rollover.

You can request an IRA rollover to almost any type of fund, including general endowment, field of interest, designated, agency, and scholarship funds.

IRA Qualified Charitable Distribution (QCD) Benefits

There are numerous benefits to an IRA Qualified Charitable Distribution:

• Pay fewer taxes
• Reduce or eliminate required minimum distribution
• Rollovers are not subject the 50% deductibility limit on cash gifts
• Establish a designated fund to benefit one or more organizations, or support a field of interest fund
• Feel good knowing that you were able to make a major gift from your IRA

To leave a legacy, you may also consider designating the Community Foundation as a beneficiary of your IRA. If you have done so, please let us know if you would like to become a member of the Legacy Society.

Learn More

Note: *Tax-free IRA contributions can be made to Field of Interest, Unrestricted, Designated or operating funds at the CFMC. Gifts to Donor Advised Funds, private foundations, or to fund a Charitable Gift Annuity or Charitable Remainder Trust do not qualify for preferential tax treatment. You cannot receive any goods or services in order for an IRA rollover gift to qualify for tax-free treatment. 

Charitable Gifts by Will

You can plan your charitable legacy by including the CFMC as a beneficiary of your will or trust. By including this planned gift in your estate, you establish a legacy and can rest assured that we will carry out your charitable intent.

You can donate a set dollar amount, a specific property, a percentage of the residue of your estate, or the remainder after distributions to other beneficiaries in order to establish any type of fund.

Learn more about estate gifts

Sample Bequest Language

Life Insurance and Retirement Accounts

Another way to create a fund through your estate is to designate CFMC as a beneficiary of a life insurance plan or retirement account. 

Life insurance policies can be donated to establish a fund by naming CFMC as the owner and irrevocable beneficiary of the policies. You get an immediate tax deduction and you may save estate taxes later.

Retirement account assets, such as those held in a 401k or IRA, are subject to tax penalties if left to anyone other than your spouse. By designating CFMC, a public charity, as a beneficiary you avoid these taxes while making a significant gift to support nonprofits in your community.

Charitable Gift Annuity

A Charitable Gift Annuity (CGA) allows you to make a generous gift to your community and benefit the nonprofit of your choice, while providing yourself a new income source you can count on for the rest of your life.

The CGA is a win-win situation where both the income beneficiary and the charity benefit. – Marian Buccafurni and Paul Lawrence

How It Works

• You establish a charitable gift annuity with the CFMC either naming the beneficiary agency or agencies, a field of interest or unrestricted fund. You can give cash, appreciated stocks, real estate, or other assets.
• You receive a stream of income that is fixed, regardless of market conditions, and an immediate tax deduction for the charitable portion of your gift. We handle all the administrative details, issuing annuity payments to you during your lifetime.
• Upon your death, 90% of the remainder is added to an existing endowment or used to establish a new endowed fund.*
• Your fund will be used to make grants addressing community needs, creating a permanent source of community capital and helping to do good work forever.

Charitable Gift Annuity Benefits

• Income from your CGA may add up to more than the interest and dividends you earn from holding the assets. You can use this income to supplement your lifestyle, or that of someone else: a sibling, a dependent parent, a friend, or a former employee. You or a loved one can start receiving annuity payments immediately, or choose to defer them.
• A portion of the income may be tax-free return of principal, while some is taxed as ordinary income or capital gains.
• A CGA reduces estate assets and may decrease estate taxes. Plus, it’s backed by the general assets of the Community Foundation for Monterey County.

How Much Income Will My CGA Generate?

A Charitable Gift Annuity produces a fixed source of income for life, based on the amount of the gift and your age when you establish it. Use the table below to see how much income your CGA could produce. For a more detailed view of returns, including tax benefits, use the Planned Gift Calculator.

Annual Return on $100,000 CGA

CGA Calculator

Annuities are subject to regulation by the State of California. Payments under such agreements, however, are not protected or otherwise guarantees by any government agency of the California Life and Health Insurance Guarantee Association.

This is not legal advice. Any prospective donor should seek the advice of a qualified estate and/or tax professional to determine the consequences of his or her gift.

*10% of the remainder value is transferred to the Community Foundation Charitable Gift Annuity Reserve account.

Charitable Remainder Trust

Giving through a Charitable Remainder Trust (CRT) allows you to make a generous gift to your community, while providing yourself a new income source you can count on for the rest of your life.

We knew the foundation well, respected what it stood for and the work it did in the community. – Paul Lawrence and Marian Buccafurni

How It Works

• You establish a charitable remainder trust with the CFMC either naming the beneficiary agency or agencies, a field of interest or unrestricted fund. You can give cash, appreciated stocks, real estate, or other assets.
• You receive a stream of income that is fixed, in the case of a charitable remainder annuity trust, or variable, in the case of a charitable remainder unitrust. We handle all the administrative details – issuing payments to you during your lifetime and, afterward, issuing annual grant awards to charities in the name of the fund.
• Upon your death, the remainder of the trust is added to an existing endowment or used to establish a new endowed fund that is invested over time. We can establish a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
• Your fund will be used to make grants addressing community needs, creating a permanent source of community capital, helping to do good work forever.

Charitable Remainder Trust Benefits

• Income from your CRT may add up to more than the interest and dividends you earn from holding the assets. You can use this income to supplement your lifestyle, or that of someone else: a sibling, a dependent parent, a friend, or a former employee. You or a loved one can start receiving payments immediately, or choose to defer them.
• A portion of the income may be tax-free return of principal, while some is taxed as ordinary income or capital gains.
• You have several options when establishing a trust. You can create a charitable lead trust during your life or through your will. The trust generates income for you or a beneficiary – either for a number of years or for your lifetime, in fixed payments or as a percentage of the trust assets
• The trust is managed expertly by Kaspick & Company, experienced professionals, which may help your investments grow over time.
• When the trust terminates, its final assets are transferred to the Community Foundation for Monterey County and either contribute to an existing fund or establish a new fund that will serve your charitable interests in perpetuity.

CRT Calculator

This is not legal advice. Any prospective donor should seek the advice of a qualified estate and/or tax professional to determine the consequences of his or her gift.

Charitable Lead Trust

A Charitable Lead Trust (CLT) is an irrevocable trust that provides a fixed amount or a percentage of the trust assets paid to a charity. This type of trust helps you build a charitable fund with the CFMC. When the trust terminates, the remaining assets are returned to you or transferred to your heirs, often with significant tax savings.

How it Works

• You transfer cash, appreciated stocks, real estate, or other assets into an irrevocable charitable trust.
• We set up a fund in your name, in the name of your family or business, or in honor of any person or organization you choose.
• Your charitable lead trust pays the CFMC an annual amount to build the charitable fund. You designate the trust to exist for a specified number of years or until your death.
• You also designate your family or anyone you choose as the final beneficiary of your trust.
• We handle all the administrative details, issuing grant awards to charities in the name of the fund you establish.
• Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants or support organizations addressing community needs.

Charitable Lead Trust Benefits

• A CLT protects investment earnings from taxes and offers gift, estate, and generation skipping tax benefits. For example, trust assets are removed from your estate for estate tax purposes. You may also capture future gift tax deductions.
• You have several options when establishing a trust. You can create a charitable lead trust during your life or through your will. The trust contributes to the charitable fund specified at CFMC – either for a number of years or for your lifetime, as a fixed amount or as a percentage of the trust’s assets.
• The trust is managed expertly by Kaspick & Company, experienced professionals, which may help your investments grow over time.
• When the trust terminates, its final assets are transferred to those you designate; any growth in the trust passes to recipients, often with significant transfer tax savings.

CLT Calculator

This is not legal advice. Any prospective donor should seek the advice of a qualified estate and/or tax professional to determine the consequences of his or her gift.