Community Foundation of South Central Kentucky

1CASH

Cash, often in the form of a check, is a convenient way to create a new fund or add to an existing fund. Gifts of cash enable donors to claim a current tax deduction of up to 50 percent of adjusted gross income, and contributions over that limit can be carried forward for up to five subsequent years. Checks can be mailed to the address below.

Checks may be directed to the Community Foundation with the fund name in the memo field.

Send to:
The Community Foundation of South Central Kentucky
PO BOX 737
Bowling Green, Kentucky 42102-0737

2CLOSELY HELD STOCK

As an owner of a closely held or family business, you may be considering a family foundation, but have discovered that there are restrictions that apply to private foundations and closely held business interests.

A partnership with the foundation is a cost-effective way to maximize your philanthropic options while minimizing your tax liability. The foundation can be particularly helpful in the following instances:

• Helping to pass ownership of your company to children or key employees while not straining available assets and liquidity.
• Selling your company and planning to minimize estate taxes.
• Getting equity out of your company to provide income.
• Creating a family philanthropic program using the assets of your business.

3PUBLICLY TRADED SECURITES + MUTUAL FUND SHARES

You may be able to save on taxes when you contribute appreciated securities or mutual fund shares. At the same time, this may allow you to be more charitable than you thought possible.

That’s because you receive a double benefit:

• An immediate charitable deduction for the full fair market value of the donated assets
• Exemption to any capital gains tax on the appreciation

The fair market value of contributed securities can be deducted up to 30 percent of your adjusted gross income. If the amount is larger than you can use in one year, the surplus can be carried over to up to five subsequent years.

4REAL ESTATE

Gifts of real estate may include a house, apartment building, farm, vacation home, commercial buildings and income-producing and non-income-producing land. You can make an outright gift of real property now or through your estate.

A gift of real estate that you have owned for more than a year entitles you to a tax deduction for the full fair market value of the property while allowing you to avoid paying capital gains tax.

Gifts of real estate typically require certain procedural steps, including a site visit to the property, a qualified appraisal, a preliminary title report and an environmental assessment.