Cash ~ Cash gifts are a very simple way to establish a fund or add to an existing fund.
Securities ~ Gifts of securities (stocks or bonds) may be used to establish or grow an existing fund. Such gifts often provide tax advantages.
Life Insurance ~ Life insurance policies also can be used as charitable gifts. You can make the Community Foundation a full or partial beneficiary on your life insurance policy. Upon your death, your gift is placed into the charitable fund of your choice.
Bequest by Will
You can designate a gift like those mentioned above or any portion of your estate to the Community Foundation and, in many cases, receive a substantial reduction in federal and state gift and estate taxes. Your gift can be used to accomplish any charitable goal such as establishing a scholarship fund, an endowment fund for a particular charity, or creating a family legacy which would allow your children to continue your philanthropy into the future.
Retirement Plan Assets
A retirement asset such as an IRA account makes an excellent bequest. By designating the Grand Rapids Area Community Foundation or one of our specific Community Funds as the beneficiary, the full value of the gift is transferred, tax-free, at your death. Your gift is placed into the charitable fund of your choice.
Charitable Distribution from your IRA
(often referred to as a Charitable IRA Rollover)
If you are age 70½ or older and have an IRA, you can make a direct charitable distribution (up to $100K a year) to a charitable organization without tax penalty. This can be particularly appealing when you consider what to do with your Required Minimum Distribution. If you do not want or need the income or tax burden that comes with accepting your Required Minimum Distribution, you can transfer it to the Community Foundation and not incur any federal income tax liability.
This IRA Rollover is now permanent law. It is important that the distribution comes directly from your IRA broker to the Community Foundation (not to you).