Your client wants to sell appreciated property, but is concerned about capital gains taxes.
Giving all or part of the asset to charity will eliminate or reduce capital gains taxes and can replace less efficient charitable giving, continue or begin to provide lifelong income, and/or provide satisfaction about supporting a charity of one’s choice.
Your client will be receiving additional taxable income this year. She'd like to give some to a charity, but isn't ready to decide which one.
Donor advised funds will lock in a tax deduction for the current year and allow as much time as is needed to choose the charity.
Your client manages a rental unit which provides needed income, but it's too much work.
Giving the rental property to charity and setting up a Charitable Remainder Trust (CRT) will eliminate the capital gains tax, secure lifetime income (perhaps more than from the rental), claim a sizable tax deduction, and support a favorite charity.
Your client has a large retirement fund but his children will only receive 20 or 30 cents on the dollar.
Giving the retirement fund to an endowment from which heirs may recommend charitable gifts will reduce estate tax, eliminate income tax on the IRA distribution, and create a family legacy. In the meantime, other assets can be used for gifts to family members.
Your client has no children, and it's time to write a will.
How do they want to be remembered? Suggest a charitable fund at the Foundation to be remembered and as an alternative to paying too much estate tax.
Your client has inherited artwork, jewelry, or real estate and would like to set up a fund.
The Community Foundation can accept almost any appreciable asset to help you set up a charitable fund.
Your client would like you to calculate the amount of their payments when setting up life income gifts like charitable remainder trusts or gift annuities.
What are the benefits to my clients of using Hutchinson Community Foundation as opposed to giving directly to the organization(s) they wish to support?
Hutchinson Community Foundation offers your clients numerous benefits, including the maximum charitable tax benefits available. When your clients give to their chosen organizations through Hutchinson Community Foundation, the Foundation handles the grant paperwork– administration, record keeping and financial statements. We ensure every nonprofit organization they support is qualified as a charitable recipient and offer the opportunity to our donors to review funding proposals pre-screened by our staff to help make decisions on funding these proposals. The Foundation also provides numerous opportunities for donors to pool funds, work on common interests and support local organizations. The Foundation is also equipped to accept a wide variety of assets from cash to securities, to real estate and closely-held stock.
Can I receive estate planning guidance through Hutchinson Community Foundation?
The Foundation partners with John Griffin of Stewardship Planning LLC to provide estate planning services. To find out more about this service, visit the Legacy Society page.
Can charitable funds established at Hutchinson Community Foundation benefit areas other than Hutchinson and Reno County?
Our role is to help donors create funds that carry out their charitable goals, be that in Hutchinson, Reno County, or elsewhere. Foundation donors can recommend grants to organizations across the world – nationally and internationally.
What kinds of assets can be donated?
There is no minimum amount required to start a fund at Hutchinson Community Foundation. However, grants cannot be made from a fund until it reaches $10,000 or, in the case of scholarship funds, $25,000.
What is the minimum gift required to start a fund?
The Foundation offers a variety of ways for your clients to make donations to reach their philanthropic goals. Corporations and businesses are limited to gifts of cash, securities, closely-held stock, limited partnership interests and real estate. Individuals and families have more options, including gifts of cash, securities, closely-held stock, limited partnership interests, bequests, life insurance policy, retirement fund accounts, real estate, tangible personal property, a charitable remainder trust, or a charitable lead trust. Explore possible options here.
What can I do to encourage my clients to be philanthropic?
Bring up the philanthropic question. Most clients are probably philanthropic already so helping them think through the role of philanthropy in their current financial and estate plans is a natural transition and is an important part of the overall planning process. For additional information, contact Sarah Blake.
What services can you offer that will make my job easier?
The Foundation’s staff is trained to assist individuals and families think through their charitable goals. We welcome the opportunity to meet with you and your clients to help them determine how to make an impact with their philanthropic dollars. We become part of your team, helping your clients with current and future philanthropic endeavors.
What are the tax advantages?
While tax considerations vary according to assets, generally your clients may deduct up to 50% of their adjusted gross income (AGI) for cash contributions, and up to 30% of their AGI for gifts of appreciated securities. Your client’s tax situation should be viewed on an individual basis to determine the deductibility allowed for them. A fund at the Foundation is often a better alternative than a private foundation.
What if my client wants to keep this private?
There is no better place. Your client may remain anonymous. We are not required to report his/her name to the public or through any reports required by the IRS.
Can my clients' families be involved?
Yes. We encourage it. Philanthropy offers an opportunity to pass on the family’s philanthropic traditions and family values. Creating a donor advised fund with children as the successor advisors can be one of the most powerful and meaningful gifts a parent can make.
Have additional questions?
If you have additional questions about Hutchinson Community Foundation processes or giving options, you may also want to consult the content in our Resources and Formspage.