- Why Partner with The Dayton Foundation?
- How We Can Help Your Clients
- Benefits for You and Your Clients
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- Talking to Clients about Charitable Giving
- Solutions for Your Clients
- Types of Funds
- What Your Clients Can Give
- Administrative Fees & Investment Policy
- Options for People with Disabilities
- Advisor Newsletter – Futures
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What Your Clients Can Give
Just like your clients philanthropic goals are unique, so are their plans for how and what they want to give. We will work to assure the best tax advantages for them, meet their charitable goals and give them a sense of pride in affiliating with a philanthropic community of caring people who are making a difference.
Click on the links below for details.
WAYS YOUR CLIENT CAN GIVE NOW
- Appreciated Securities
- Real Estate and Other Real Property
- Closely Held Stock/Limited Liability Partnership Interests
WAYS YOUR CLIENT CAN GIVE LATER LEGACY GIFTS (PLANNED AND DEFERRED GIFT VEHICLES)
Learn more about current and deferred gift giving options, as well as gift options that produce income for your clients, in our new brochure, Ways You Can Fund Your Charitable Gift.
Gifts of cash are the easiest and most popular form of giving. Cash, typically in the form of a check, is fully deductible for federal income tax purposes up to 50 percent of your clients' Adjusted Gross Income. Amounts given over and above this may be carried forward and deducted for up to six years.
Your clients also may use their Visa, MasterCard or American Express to donate online to any of more than 2,500 Dayton Foundation endowed funds or Charitable Checking Accounts.℠ There is a 2.5 percent transaction fee and a $100 gift minimum.
Questions? Read our gifts of cash Q&A.
Giving stock that has been owned for over a year is deductible in amounts up to 30 percent of your clients' Adjusted Gross Income. Just like with cash, amounts exceeding this limit may be deducted for up to five additional years. Your clients also avoid paying any long-term capital gains tax on the increased value of their stock. Other marketable securities, such as bonds, Treasury Bills or mutual funds, provide similar tax-saving advantages.
Questions? Read our gifts of appreciated securities Q&A.
Click here for a scenario illustrating the benefits of gifting appreciated securities.
Real Estate and Other Real Property
Gifts of real estate entitle your clients to a charitable deduction for the fair market value of the property. If they wish to donate a personal residence or farm and choose to live on the property for the rest of their life, they will receive a current tax deduction for the future value of the gift.
The Dayton Foundation also will consider gifts of personal property, such as artwork, collectibles and jewelry. This type of gift arrangement must be discussed individually. Please contact a member of our Development Department at (937) 222-0410 to discuss the details of such a proposed gift. All such gifts, however, are subject to approval by the Foundation’s Gift Acceptance Committee and the Governing Board.
Questions? Read our gifts of real estate Q&A.
Closely Held Stock/Limited Liability Partnership Interests
Closely held stocks are shares in a privately owned business. The stock can be contributed outright to The Dayton Foundation. As the donor, you generally are entitled to a deduction for the appraised fair market value, up to 30 percent of your adjusted gross income. Special rules apply to shares of sub-chapter S corporation stock.
If you own limited partnership interests, such as investment or business partnerships, or family limited partnership interests, you also can contribute them to The Dayton Foundation. While donations of these and other more complicated assets require care, consideration and planning, we have the flexibility and expertise to accept them in most cases.
Questions? Read our gifts of closely held stock/limited liability partnership interests Q&A.
OUTRIGHT LEGACY GIFTS PLANNED AND DEFERRED GIFTS
If your clients are looking to establish an estate plan or to revise an existing one, why not suggest leaving a portion of their estate to The Dayton Foundation as a legacy gift? Remembering charity in their will or financial or estate plans can:
- significantly reduce their tax liability,
- preserve your clients charitable intent in perpetuity,
- produce a financial windfall for their favorite church, school or nonprofit organization and,
- when a life income plan is involved, provide added income benefits for themselves and their family.
Charitably minded individuals have committed more than $212 million to The Dayton Foundation through a variety of planned and deferred gifts.
Whether your clients have a particular area of interest or charity they want to support, or want the Foundation to determine where grant monies are needed most in the community, we will honor your clients wishes in perpetuity.
For more information about the ways your clients can make planned or deferred gifts, please refer to one of our recent Futures newsletters: The Dayton Foundation’s Unrestricted Endowment Option: For Clients Looking to Help the Community Broadly, The Benefits of Deferred Funds in Uncertain Economic Times and Discussing Charitable Giving with Clients and Charitable Gift Annuities and Charitable Remainder Trusts: How They Work and When to Use Them.
Types of planned and deferred giving vehicles include:
Gifting a life insurance policy is a perfect option, if the policy is no longer needed. Your client can take a charitable deduction approximately equal to the policy’s cash value at the time he or she makes the gift. If he or she is continuing to pay annual premiums, those premiums will become tax-deductible each year.
Questions? Read our gifts of life insurance Q&A.
Click here for a scenario illustrating the benefits of gifting life insurance.
Bequests through a will are one of the most effective methods of providing for a favorite charity while enabling the donor to keep assets or property during his or her lifetime. Naming the Foundation in a will can be accomplished through an amendment called a codicil and by establishing a deferred fund through The Dayton Foundation.
Types of bequests include the following.
General Bequest the Foundation receives a designated dollar amount from the residuary estate.
Percentage Bequest the Foundation receives a percentage of the estate.
Specific Bequest a piece of property, such as real estate or stock, is transferred to the Foundation.
Residuary Bequest the Foundation receives the remaining property from your client’s estate after other obligations are met, including all debts, taxes and other bequests.
Contingent Bequest your clients gift is contingent upon satisfying other events, such as the death of a spouse.
Retirement Plan Assets
A gift of retirement assets, such as pension plans for Individual Retirement Accounts (IRAs), may enable more money to pass to charity. This could eliminate taxes that may otherwise consume a large part of these assets.
Questions? Read our gifts of retirement plan assets Q&A.
With a charitable lead trust, your clients may transfer assets to a trust, then gift the income to a charity of their choice. Eventually the assets are distributed to their beneficiaries. Properly set up, this type of planned and deferred gift may help your clients redirect income to charity and avoid estate taxes in the future.
Life Estate Remainder Interest
Your client can gift their home, farm or vacation property to the Foundation and retain the right to use the property during their lifetime, after which it is sold by the Foundation. Your client benefits from an immediate tax deduction in the year that the gift arrangement is made.
LIFE INCOME PLANS
Life income plans offer a way to receive income for life and an immediate charitable tax deduction, while leaving an everlasting legacy to the Greater Dayton Region. Additionally, life income plans can:
- provide charitable gift deductions,
- significantly reduce or even eliminate capital gains tax on gifts of appreciated property,
- improve income from low-yield, high-value assets,
- offer effective and flexible retirement planning options,
- remove gifted assets from your taxable estate, and
- provide income for life for the donor and his or her family.
For more about the types of Life Income Plans, click here.
IN HER WORDS
“It is the advisor’s job to educate our clients and the public on how to make their hard-earned dollars work more effectively and how to maximize their tax savings with charitable gifts. The Dayton Foundation is a valued partner in this process.”
– Debra Staton, first vice president/investments, retirement plan consultant, Merrill Lynch
- ©2014 The Dayton Foundation
- All rights reserved worldwide.
- Phone: (937) 222-0410