Discover the Power of Generosity
What to Give
Donors have a variety of giving options to consider when creating a new charitable fund or adding to an existing fund. The following guidelines are provided for educational purposes and are not intended as tax advice.
Usually, in the form of a check or cash is the most common form of charitable gift. Cash gifts are tax deductible. Actual savings from gifts of cash depend on one’s tax bracket – generally, the higher the tax bracket, the lower the cost of the gift. All checks should be made payable to The Middletown Community Foundation with the name of the specific fund indicated on the memo line. Credit card gifts may be made online by clicking the “donate now” button.
A gift of appreciated securities (such as stocks, bonds, and mutual funds) can be used to establish a fund or add to an existing fund. Appreciated securities held long-term often provide important tax advantages, as their full market value is generally deductible as a charitable contribution of up to thirty percent of the donor’s adjusted gross income, like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years. Please contact us for delivery instructions and assistance.
Gifts of real estate include a gift of a house or other personal residence, farm, commercial building, and income-producing or non-income-producing land. The Foundation accepts gifts of unencumbered real property, which can allow a donor to contribute more than they may have thought possible. All gifts of real estate are evaluated on a case-by-case basis, are subject to our real estate guidelines, and are subject to formal acceptance by the Foundation’s Board of Trustees. Please contact us for more information and assistance.
Mutual funds can also be contributed outright to the Foundation to establish a fund or to be added to an existing fund. Donors generally receive a deduction based on the value of the mutual fund at its public redemption price. Completing the gift transaction varies depending on the specific asset (s) and how they are held. However, in some cases, electronic transfers via wire to a broker are possible and may be completed within a few days, similar to gifts of appreciated securities. Please contact us for assistance.
Closely Held Stock/Partnership Interests
Closely held stocks are shares in a privately-owned business. The stock can be contributed outright to a public charity such as the Middletown Community Foundation, and the donor is generally entitled to a deduction for the appraised fair market value of the gift for up to 30 percent of the donor’s adjusted gross income. If the claimed value exceeds $10,000, a “qualified appraisal” is required. The Foundation can sell the stock to any potential buyers and is not legally bound to sell the donated shares. Special rules apply to shares of subchapter S corporation stock. Tangible Personal Property Gifts of tangible personal property such as jewelry, artwork, collectibles, antiques, vehicles, and boats may be donated to the Foundation to establish a fund or to be added to an existing fund. This type of gift must be evaluated individually by the Foundation for suitability before being accepted.
The IRA Charitable Rollover
The American Taxpayer Relief Act of 2013 reenacted the Charitable IRA Rollover as a current giving strategy for the calendar year 2013. A donor aged 70 ½ or older may directly transfer from an IRA up to $100,000 to a public charity such as the Middletown Community Foundation. Donors may utilize this strategy to establish or add to a scholarship fund, a designated fund, an unrestricted fund, or a field of interest fund at the Foundation. The IRA Charitable Rollover strategy enables your clients to make an IRA distribution to charity without including the distribution as taxable income to the donor. Please contact us for further information and assistance.