For Donors (How It Works)
How Does it Work?
The community foundation idea is simple: Anyone may use it to give something back to the community.
Assets that you donate to the foundation create one of several types of funds to support your charitable goals. We offer you a full menu of planned giving options to tailor your gift.
You can create a fund in honor of someone you love or to celebrate a special event. You can direct your gift broadly or narrowly to issues you care about or to wherever the needs are greatest. However you give, your gift can change lives-today and in the future.
Ways to Give
You have a lot of flexibility in making your gift in order to meet your specific charitable goals and take full advantage of the tax deductions. The gift options include:
- Cash - Cash is the simplest and most convenient way to contribute to the River Falls Community Foundation. Cash gifts qualify as a charitable contribution for federal income tax purposes and are fully deductible up to 50% of your adjusted gross income in the year you make the gift.
- Securities - By transferring appreciated stocks or bonds to the River Falls Community Foundation you may completely avoid capital gains tax, while securing an income tax deduction for the full current market value of those securities, equaling up to 30% of your adjusted gross income in the year of the gift.
- Real Estate - A gift of real estate yields a deduction for the full market value of the property and avoids capital gains as in a gift of securities. You may be able to retain the right to live in a residence or farm which you contribute.
- Life Insurance - By naming the Foundation as the irrevocable beneficiary of a life insurance policy, you are entitled to an immediate tax deduction in the amount of the cash value of the policy. Insurance premiums paid thereafter are deductible as charitable gifts.
- Wills and Bequests - Cash or property given through a will is usually fully deductible for federal estate and state inheritance tax purposes. The Community Foundation can also be named as the residuary beneficiary of your estate or be named in a charitable remainder trust created by the will.
- Charitable Remainder Trusts - Provide lifetime income for yourself or other beneficiaries and leave the remainder of the estate to the River Falls Community Foundation.
- Charitable Lead Trusts - You can name the Foundation as beneficiary of income from a trust for a specific number of years. Ultimately, the bulk of the trust goes to other named beneficiaries, such as children or grandchildren.
- Private Foundation Transfer - A private foundation can efficiently and cost-effectively transfer all or some assets to the Community Foundation, yet retain the private foundation's name and purpose. Such transfers offer tax advantages, flexibility, administrative savings, quarterly reports and automatic annual audits.
For Donors Your contribution to the Community Foundation will help build charitable capital for the future, empowering the Foundation to address needs which are multidimensional, long-term and community-wide in scope. How your gift is used depends on your individual philanthropic goals and objectives. The following types of permanent funds have been created to serve the various objectives of donors to our Community Fund.
- Unrestricted Funds - Unrestricted funds are the most flexible and the most responsive to the area's changing needs. The donor leaves decisions on the charitable uses of the funds to the Community Foundation's Board of Directors.
- Donor Advised Funds - Donor Advised Funds allow the donor - or others designated by the donor - to make recommendations to the Community Foundation regarding proposed charitable grants from the fund.
- Field of Interest Funds - Field of Interest Funds support broad areas of charitable interest - such as the arts, educations, environment or human services - selected by the donor at the time the gift is made. The Foundation makes grants from these funds to support the most appropriate projects and organizations within the prescribed areas of interest.
- Designated Funds - Designated Funds are established to benefit specific charitable organizations that are named by the donor at the time the fund is established, or to create scholarships. If the recipient organization ceases to exist or changes its status as a charitable organization, the Foundation's Board of Directors selects an alternate charitable use of the designated funds compatible with the original purpose.