What You Can Give to Your Favorite Fund
Most people know that they can write a check and support one of the over 500 funds at NDCF. But did you know there are many other ways that you can provide financial support to your favorite charity, community, or scholarship? Here is a brief listing of other ways to give, along with the benefits of each. For more information about these options, please contact NDCF at 701-222-8349.
If you would like to make a donation today, NDCF if structured to accept a variety of gifts. Included in what we can accept are:
- Cash/Check/Credit Card
- Real Estate, Bargain Sales, Remainder Interests in Property
- Appreciated property - stocks, or closely held stock
- Oil, Gas, and Mineral Interests
- Gifts of Ag Commodities
If you are interested in long-term or planned giving, there are a variety of ways to structure your gift. Here are some of the more common vehicles you can use to support your favority organization or fund at NDCF. We do have a Certified Financial Planner on staff who can answer any questions you have or help you determine the best option to accomplish what you wish.
Life Insurance/Retirement Accounts
This is one of the easiest ways to provide financial support to a program or charity. You simply make the North Dakota Community Foundation a beneficiary (or partial beneficiary) of your policy, IRA, 401K or commercial annuity. You need to specify which fund you wish to support at the NDCF.
Benefits of Life Insurance/Retirement Account beneficiary: Easy process, no tax due on tax-deferred instruments giving to charity and no impact on your current financial situation.
A bequest is property or money that you promise in your will to give to another person or organization after you die. It enables you to maintain full control over your property and money during your lifetime and yet to receive a charitable estate tax deduction for the value of the property at the time of your death. It is advised to have an attorney help you in drafting a will.
If you would like to leave some or all of your estate to the NDCF, the bequest language is as follows:
“I give and bequeath to the North Dakota Community Foundation (Tax ID 45-0336015), a qualified charitable organization under IRS 501(c)(3), located in Bismarck, North Dakota, ______(a percentage of the estate, specific dollar amount, or remainder of estate) to the ______________ (name of fund), a component fund of the North Dakota Community Foundation.”
Benefits of Bequests: The executor of your estate will deduct the fair market value of the property you transfer to the NDCF. This charitable deduction can save a substantial amount of estate tax. In addition, you will know that your gift will continue to improve the quality of life in North Dakota forever.
Charitable Gift Annuities
A Charitable Gift Annuity is a contract between a charity and an individual. The individual, referred to as the donor, transfers property to the NDCF and the NDCF promises to pay a given amount at the end of each selected payment period to one annuitant for life or two annuitants for both lives (usually the donor or the donor and his/her spouse). Part of the payment is interest earned on the12 initial gift and is taxable as ordinary income. Part of each payment is return of principal and is tax free. However, if an annuitant survives past his or her life expectancy, all later annuity payments will be ordinary income.
Benefits of a Charitable Gift Annuity: Gift annuities are most attractive if you desire fixed payments.
The annuity amount is fixed and will not change with current investment or market conditions. Also, appreciated property can be transferred to NDCF for a particular fund in exchange for a gift annuity. With appreciated property, a portion of the capital gains is allocated to the charitable gift amount and there is no capital gains tax on that amount.
A Charitable Gift Annuity is especially attractive if you have an asset that is not producing a large amount of income – such as a stock or CD – and gift it to the NDCF.
Charitable Remainder Unitrust
The Charitable Remainder Unitrust is a special trust that pays income to family members. After all of the income payments have been completed, the remainder is distributed to qualified charities, in this case the NDCF for the particular community or charity you wish to support. The person who establishes the trust may select the unitrust percentage, the persons to receive the income from the trust, and the charities which will receive the principal of the trust after all income payments are completed.
Benefits of a Charitable Remainder Unitrust: The major benefits of the trust are as a means to bypass the capital gains tax, increased income, and for a charitable income tax deduction. The details of a charitable remainder unitrust can be complex. If you have specific questions about these benefits, contact your financial advisor or call the NDCF at 701-222-8349.
There are other, more complicated vehicles for transferring property and benefitting a fund at NDCF, including a Charitable Remainder Annuity Trust and an Annuity Lead Trust. The staff at the North Dakota Community Foundation is experienced in a variety of giving tools and would be happy to answer questions or provide information if you would like to support one of our funds in one of these ways.
Note: The North Dakota Community Foundation is not engaged in rendering legal or tax advice. This article is meant to provide general information about several different ways to provide support to a fund. The NDCF recommends that any prospective donor consult their tax or legal advisor before entering into any giving program.