Current-use funds can support grantmaking activities, basic operating expenses and program activities. Using this strategy, you can see the immediate effects of your gift for whatever period of time you designate — the shorter the period of time you determine, the greater the immediate impact on the community. Endowment funds are invested in perpetuity and the distributions generated from earnings benefit a variety of community projects.
You may designate any of the following types of gifts as current-use or permanent endowment funds:
- Securities. For both closely held and publicly traded stocks, the charitable deduction is based on full market value. Also, capital gains taxes on appreciation are avoided.
- Real Estate. If held for more than a year, a gift of real estate provides the same benefits as a gift of securities.
- Bequests. Establish a fund through your will.
- Charitable remainder trusts. The donor and/or other named beneficiaries retain a life income and earn immediate and long-term tax benefits. Upon termination, assets go to a charitable fund named and designated by the donor. Using assets remaining in IRAs to create charitable unitrusts can offer significant tax advantages to larger estates.
- Deferred Gift Annuity. During the life of the annuity, the gift amount is professionally invested. At maturity (death of a donor) or relinquishment of beneficial interest (as early as five years from the date of the gift under current Montana law), the amount of the annuity is donated to the endowment of the charity selected by the donor. There are several advantages to gift annuities: donations are small compared to other types of planned gifts; they qualify for the Montana Endowment Tax Credit and federal tax deductions; and they can begin to benefit donors’ charities as soon as five years from the date of the gift.
- Insurance. Name the Park County Community Foundation as owner and beneficiary of an insurance policy to be used to establish a future charitable fund. The donor earns an immediate tax deduction, and any additional premium payments are deductible as well.