Sunday, June 16, 2024


Gifts to the foundations may be used to reduce taxes!!

Community foundations are registered as tax-exempt charitable organizations.  Therefore if a donor’s annual charitable donations exceed $200, a gift to the foundation (subject to a maximum)  results in a tax credit at the top personal rate for the year. 

Donors may gain additional benefit if the gift is in the form of marketable securities.  A donation of securities may yield a better tax result than selling them and donating the cash.  The federal government has now determined that donations of appreciated securities to registered charities will not be subject to capital gains tax.  As a result, the entire market value of the securities at the date of the donation will be eligible for a charitable donation tax credit at your very top marginal rate.

If a donor makes the foundation the owner and beneficiary of a life insurance policy, the value of the policy qualifies as a charitable donation, although the transfer may result in a tax obligation.  The payment of current premiums qualifies as a charitable donation as well.