Ways to Give
There are many ways to give through the Watertown Community Foundation. Here are some of the most common methods that philanthropists choose.
Cash
Cash is the easiest way to contribute. Donors
who make
gifts of cash are eligible for a charitable deduction in the year the
gift is made.
Appreciated Stock
Stocks may be
donated to the Watertown Community
Foundation as
a charitable gift. Donors are eligible for a tax deduction
for
the fair market value of the stock. By donating appreciated
stock
to the Watertown Community Foundation, donors can avoid capital gains
tax that would otherwise occur at the sale of the stock.
Bequests
A charitable
bequest is the most common form of planned
giving. By including a charitable bequest in a will, donors
are
able to make gifts that are simple, and in many cases, larger than they
could make during their lifetime. The bequest can take the
form
of a specific amount of money, or may serve as a “residual
bequest,” where the remainder of a donor’s assets
become a
gift after all other specific bequests have been paid out.
Gifts
made to charity by bequest are deducted from the donor’s
adjusted
gross estate.
Retirement Plans
& Life Insurance
Donors can use
assets held in an individual retirement
account
(IRA) 401(k), 403(b), or similar account to start a fund at the
Watertown Community Foundation at the time of their death.
Donors
can choose to donate all or part of their retirement plan to the
Watertown Community Foundation. These accounts, while very
attractive to defer tax during lifetime, are the most heavily taxed
assets in an estate at death.
To make a gift using retirement assets, simply fill out a form with the plan administrator designating the Watertown Community Foundation as a beneficiary. There is no cost, and the beneficiary designation can be changed at any time.
Charitable Remainder
Trusts
Charitable
Remainder Trusts allow donors to transfer
assets to
a trust, take an immediate tax deduction and receive an income stream
for his or her lifetime. The amount of the deduction varies
with
the age of the income beneficiary(ies).
Charitable Remainder Trusts are used to guarantee a retirement income while making a significant charitable gift. When a trust term expires, the remainder is contributed to a pre-established fund at the Watertown Community Foundation.
What are the tax
benefits?
Both outright and
planned gifts have attractive tax
advantages
for the donor. Donors are encouraged to consult with their
tax
advisor before making a charitable gift.
What is endowment?
When you create a
charitable fund through the Watertown
Community Foundation, you have the opportunity to benefit the community
in perpetuity with a permanent endowment. Your gift is
invested
and the earnings from your fund are used annually to address community
needs based upon your wishes.
211 East
Kemp Avenue, P.O. Box 116, Watertown, SD 57201-0116
605.882.3731 Fax
605.753.5731
email:
info@watertowncommunityfoundation.org