The Cape Cod Foundation :: A Community Foundation

Helpful Checklist for Giving

Helpful Checklist for Giving
This checklist may help you decide what to give and when to create a fund in The Cape Cod Foundation. For more information about these giving options please call The Cape Cod Foundation.

You want to:	We suggest that You:	In order to:
Reduce income taxes	Contribute cash or other assets (including stock or real estate)	Receive a current income tax deduction with a five year carry-over for the unused amount Distribute gifts now or later
Reduce income taxes and avoid capital gains tax on sale of appreciated assets	Contribute appreciated assets outright (i.e. stock or real estate) OR Contribute appreciated assets and deduct the donor's basis only	Receive income tax deduction for asset's full market share Avoid capital gains tax Contribute full value to charity Possibly receive a greater current tax deduction Avoid capital gains tax
Maximize the benefit of an IRA or Qualified Retirement Plan and minimize taxes	The Cape Cod Foundation as beneficiary of the plan	Avoid income tax to the plan distributions Receive a charitable deduction to estate tax
Reduce income taxes and retain income for self, spouse or other beneficiary	Establish a charitable remainder trust during lifetime	Receive life income based on full market value of assets Realize increase yield from stocks, bonds or real property through tax-free reinvestment and tax-sheltered growth Obtain current income tax deduction for value of future gift to charity Assign life income to spouse Replace value of contributed asset in estate through optional purchase of life insurance using income tax savings
Reduce income tax and contribute residence, farm or ranch to charity at death	Create a life estate with remainder to The Cape Cod Foundation	Retain lifetime use of residence Reduce taxable estate Receive a current income tax deduction with a five year carry-over for the unused amount
Reduce estate tax and contribute part or all of estate to charity	Make a gift by will	Receive estate tax deduction based on full market value of appreciated assets Create permanent support for favorite causes Simplify administration of charitable bequests Make larger gift than may be possible during life Make gift contingent on prior death of beneficiary
Reduce estate tax	Create a charitable remainder trust by will	Provide income to beneficiary for life and then benefit charity
Pass assets to family while minimizing income and estate tax	Establish a charitable lead trust during life or by will	Provide annual income to charitable fund for specific number of years Return assets to family after this period of time Reduce estate and gift taxes on property passing to heirs, based on length of trust and value of payout
Contribute asset that is no longer needed in later life	Contribute life insurance policy	Realize income tax deduction Deduct premium payments as charitable contributions
Reduce estate tax and protect spouse from financial emergencies	Create Q-TIP trust with a charitable remainder	Pay life income to spouse Pass assets to charity after spouse's death Allow trustee to invade principal for spouse's benefit

This checklist has been prepared by legal counsel and professional tax advisors to serve as a resource, not as specific advice. Since situations vary, you are encouraged to seek your own tax and legal advice.