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Tax Advantages

Why Give Through HCCEF?
From outright gifts to charitable lead trusts, donors to the Foundation have several options for structuring their gifts, each of which offers different tax advantages:

  • Irrevocable gifts, whether made available for current use or committed now for future use, qualify for immediate income tax deductions, which can be taken annually up to a portion of adjusted gross income and carried forward an additional five years. These include outright gifts made during one’s lifetime, certain charitable lead trusts, charitable remainder trusts, pooled income funds, gift annuities (which also provide favorably-taxed payments) and some gifts of life insurance.
  • Estate and gift tax relief can also be achieved through several of the types of gifts mentioned above. Bequests, in particular, are helpful for donors seeking to reduce or even eliminate estate taxes.
  • Capital gains tax savings are possible when long-term appreciated property (e.g., securities and, in some cases, real estate) is donated through outright gifts, charitable remainder trusts or The Foundation’s pooled income fund.

HCCEF’s Options for Giving brochure discusses the vehicles for making a lifetime gift and the Tools for Giving brochure outlines the various planned vehicles.

 

Compare the tax advantages of community foundations vs. private foundations.

 

The Foundation also has professional services available to help you and your advisors explore various planned giving options.


This site developed through a grant from the Iowa Community Vitality Center