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Planned Giving
Gifts of Real Estate
Securities and Mutual Funds
When a gift of long-term appreciated securities (securities held for more than a year) is made directly to the Foundation, there is no tax on your capital gains, even though the gain is counted as part of your charitable deduction. To receive the greatest tax benefit, gifts of appreciated securities should be made directly to the Mammoth Lakes Foundation, rather than selling them first and making a donation of the proceeds (you would then have to pay tax on the gains). (If your gift of appreciated stock, combined with other gifts, exceeds 30% of your adjusted gross income-the maximum deduction allowed for most appreciated securities gifts-the excess may be carried forward for five additional years. The value of the gift is based on the date the gift is made.) For stock transfers please contact the Mammoth Lakes Foundation office at (760) 934 3781.
Assets
The tax benefits of gifts of real property are similar to those of appreciated securities and in many cases apply to gifts of art, jewelry and other kinds of personal property. Interested donors should check with us and your financial and tax advisors on the feasibility and tax considerations of such gifts.
Bequests
You can establish a legacy that will reflect your concern for higher education and the arts by including the Mammoth Lakes Foundation in your will or living trust. Bequests to the MLF are generally exempt from federal or state inheritance taxes, and subject to an unlimited deduction.
Life Income Gifts
There are a variety of plans through which you can transfer assets to the Mammoth Lakes Foundation and receive income. Generally, a life income gift pays income to you or your chosen beneficiary for a term of years or for life. After the conclusion of the term, or upon the death of the last income beneficiary, the remainder left in the life income gift is distributed to the Mammoth Lakes Foundation. Life income gifts, funded with cash, securities, or real estate, may by made during the donor's lifetime or at death for the benefit of one's heirs. In addition, life income gifts may offer a variety of tax, financial, and estate planning advantages including: estate tax savings, reduced estate settlement costs, tax-free or tax-reduced income, avoidance of capital gains taxes and others. Please consult with your financial and tax advisors.
Pooled Income Fund
A pooled income fund is a common trust, which allows gifts from many donors to be combined for investment purposes. Each beneficiary receives his or her proportionate share of the net income earned by the fund. After the death of the income beneficiary or beneficiaries, the value of the remainder is segregated from the fund and distributed to the Mammoth Lakes Foundation.
Charitable Remainder Trust
One of the most commonly used forms of charitable tax planning is called the charitable remainder trust. It is a way you can convert a highly appreciated asset (such as real estate or stocks) into a lifetime income while minimizing income and estate taxes. You can benefit from a charitable remainder trust if you own a highly appreciated asset, are in a high income tax bracket, would like to enjoy your profits now but want to avoid capital gains and estate taxes, and you wish to support the Foundation.
A charitable remainder trust entails transferring the appreciated asset into an irrevocable trust, naming the Mammoth Lakes Foundation as beneficiary. The trustee (a trust company that specializes in trust management is recommended) then sells the asset at full market value and re-invests the proceeds in a high-quality, well diversified investment portfolio. For the rest of your life, the trust pays you an income. When you die, the remaining trust assets go to the Mammoth Lakes Foundation.
A charitable remainder trust can take either of two forms: A charitable remainder annuity trust that pays a fixed-dollar amount each year, which cannot be less than 5% nor more that 50% of the initial fair market value of the trust assets; or a charitable remainder unitrust that pays a fixed percentage not less than 5% nor more than 50% of the trust assets each year, based on an annual revaluation of the trust assets.
Please note: This information is not a substitute for expert legal, tax or other professional advice and we strongly encourage grantmakers and donors to work with their counsel to determine the impact of legislation on their particular situations. In making a gift, we strongly recommend that you consult with your attorney, accountant, and other financial advisors on the legal and tax-related matters affecting your specific situation. If you would like more information on any of these donation options please contact the Mammoth Lakes Foundation at 760.934.3781 or e-mail us.
Copyright 2010 Mammoth Lakes Foundation
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