The South Madison Community Foundation can work with you to build charitable funds that benefit the community, honor charitable intent and provide financial advantages to everyone involved. Beyond cash, checks, and credit card transactions, consider these ways of giving:
Gifts of Assets
Stocks, bonds, mutual funds, matured Certificates of Deposit, life insurance policies, and Individual Retirement Account withdrawals may be given. Property such as automobiles or collectibles may be donated and sold by the Foundation with proceeds benefitting the fund of your choice.
Gift of Real Estate
Personal residences, vacation homes, or acreage that has been owned for many years may have so appreciated in value that its sale would result in a sizeable capital gains tax. If given to the Foundation, the donor can avoid the tax and realize a charitable deduction for the full fair market value of the real estate. A donor can also consider a gift of their personal residence reserving the right to continue to live in the house for life.
Wills or Trusts
A charitable bequest assures that favorite charities and causes will be supported beyond your lifetime. Bequests can be made by Will or Revocable Trust for a fixed amount or any share or percentage you determine.
Retirement Plan Assets and Life Insurance
Avoidance of heavy taxes associated with retirement plan assets can be accomplished by designating SMCF as a beneficiary. An owner and beneficiary of a paid-up life insurance policy can designate a fund at the Foundation to receive the asset and qualify for an income tax deduction.
Legacies that Pay Income
Charitable remainder trusts provide an income stream for a fixed number of years or for life. At the end of the term, the remaining assets pass to an endowed fund at SMCF. Charitable gift annuities enable a donor to receive a fixed, guaranteed income for the rest of their life and/or the life of another person after a permanent gift to the Foundation is made. The donor can start receiving income immediately or defer payments until a later date. At the end of the annuity period, the remaining value of the gift passes to the Foundation to benefit causes important to the donor. Charitable lead trusts can be established to pass wealth to children or other beneficiaries with reduced gift and estate tax consequences. Assets are transferred to a trust and payments are made immediately to a fund at the Foundation for a term of years or during the lives of named individuals. At the end of the term, the remaining assets are returned to the named individuals.