Options for Giving

There are numerous options to choose from when giving through the Community Foundation of North Central Massachusetts.

Why Give Through CFNCM?

Give Now

Cash

A check or credit card gift is the simplest type of charitable gift.

Stocks, Bonds and Mutual Funds

Many gifts of appreciated stocks, bonds and mutual funds result in a charitable deduction for the full market value of the donated asset, even if you bought it for far less, and minimize capital gains taxes. To learn more about your gift of stocks, bonds and mutual fund, contact Linda Mack.

Life Insurance

You may transfer ownership to the Community Foundation and receive a tax deduction for the policy’s cash value. Gifts to CFNCM to cover premiums due may also qualify for a deduction. Learn more about your gift of life insurance [PDF].

Closely Held Stock

Donating the closely held stock of your business to the Community Foundation offers you a charitable deduction for the appraised fair market value and potential saving of capital gains tax. To learn more about your gift of closely held stock, contact Linda Mack.

Real Estate

We can help you turn a home, a business, or land into a charitable gift. We can accept the gift outright or you can set up a trust that will convert it into a gift that also provides you with income. Learn more about a gift of real estate [PDF].

Do you have a unique gift to give? The Community Foundation of North Central Massachusetts is the region’s leading expert in turning complex gifts into community good. To learn more about giving a unique gift (we have accepted all kinds of gifts), contact Linda Mack.

Individual Retirement Account Assets (IRA)

The opportunity of a lifetime to give the gift of a lifetime   

Tax-free Charitable IRA 

Transfer up to $100,000 from your individual retirement account to charity annually — tax-free. Renewed (in 2015) legislation allows you to give more to charity and pay less in taxes.

How it works

  •  You make a gift of up to $100,000 by transferring IRA assets to your community foundation. You must be 70 1/2 years old. If married, each spouse can transfer up to $100,000 from his or her IRA annually.
  • Your gift can be placed into a charitable fund in your name, the name of your family, or in honor of any person or organization you choose. We handle all administrative details.
  • Your gift can be placed into an endowment that is invested and will grow over time. Grants addressing community needs will be made forever. 

Choose a fund 

 

  • Unrestricted Fund—Address a broad range of current and future needs. The community foundation awards strategic grants to select projects and programs. 

  • Field of Interest Fund—Target your gifts to causes important to you.   

  • Designated Fund—Support the good work of a specific nonprofit organization with a source of income, plus planned giving and investment management services.

More benefits 


We can make your charitable IRA transfer easy, flexible and effective, helping you achieve your personal charitable goals and financial goals. We are happy to answer your questions and complete all required paperwork; or, if you prefer, we can consult with your financial advisor or estate planner to recommend a solution that’s right for you and your family. 

You can transfer excess retirement assets up to $100,000, directly and easily to the community foundation. The transaction incurs no federal income tax, and the asset is no longer part of your estate for tax purposes. You can choose to give during your lifetime so that you (and your community) can see results sooner than if your gift had been made through the plan. 

Larger estates face confiscatory tax rates that significantly reduce the amount left to their heirs (other than a spouse). Any amounts left in an IRA when an individual dies may be taxed as income to the beneficiary and are also considered assets for the purpose of calculating that person’s estate tax liability. When you give your IRA to charity, your heirs are not burdened by the taxes associated with receiving your IRA upon your death. Instead, you can leave them other assets that have more favorable tax treatment.

As always, please consult your tax advisor for your specific situation.
 

To learn more about donating your IRA, please contact Linda Mack.

 


Give Later

Charitable Bequest

Including a charitable bequest in your will is a simple way to make a lasting gift to your community. Learn more about a bequest by will [PDF].

Charitable Remainder Trusts

Giving through a Charitable Remainder Trust allows you to receive income for the rest of your life, knowing that whatever remains will benefit your community. Learn more about creating a charitable remainder trust [PDF].

Charitable Lead Trusts

A Charitable Lead Trust helps you build a charitable fund with your community foundation during the trust’s term. When the trust terminates, the remaining assets are transferred to you or your heirs, often with significant transfer-tax savings. Learn more about creating a charitable lead trust [PDF]

Life Insurance Policies

Life insurance provides a simple way for you to give a significant gift to charity, with tax benefits that you can enjoy during your lifetime. Learn more about your gift of life insurance [PDF].

Real Estate

Give your personal residence as a gift, occupy the residence and receive an income tax charitable deduction for the present value of the remainder interest. Learn more about a gift of real estate [PDF].

Retirement Account Assets

Individual Retirement Accounts (IRAs) and Tax-deferred Retirement Accounts are simple ways to make a lasting gift to your community. IRAs and other tax-deferred retirement plans, such as 401(k)s, may be subject to income, estate, inheritance, and other taxes. Many people may not realize that the combination of taxes on IRAs and retirement accounts can be over 70% for transfers to children and over 80% for transfers to grandchildren. Donors are often advised by tax professionals to utilize other assets to provide for loved ones and relatives, and to transfer IRAs and other tax-deferred retirement accounts to nonprofit organizations, such as the Community Foundation of North Central Massachusetts. Learn more about a gift of an individual retirement account, contact Linda Mack.

Comparing Giving Options

When people want to make a difference in their community and create a family legacy, a range of options are availablefrom creating a private foundation to the public-charity alternatives offered by a community foundation, namely a donor-advised fund or supporting organization. While private foundations may allow for greater donor control, the administrative requirements and operating costs can be substantial.

The following chart compares some of the key features of a private foundation with those of a donor-advised or supporting organization of the Community Foundation of North Central Massachusetts.

Discover the Benefits of Working Through Your Community Foundation

  Community Foundation Donor Advised Fund Private Foundation
Donor Involvement Donor recommends grants to qualified nonprofit groups. Grants are approved by community foundation board of directors. Donor appoints board, which controls investments and grantmaking.
Tax Status Public charity. Public charity.
Income Tax Deductions for Gifts of:    
Cash Up to 50% of adjusted gross income. Up to 30% of adjusted gross income.
Appreciated stock Fair market value up to 30% of adjusted gross income. Fair market value up 20% of adjusted gross income.
Real estate and closely held stock Fair market value up to 30% of adjusted gross income. Cost basis up to 20% adjusted gross income.
Grantmaking Support Professional staff is available to help identify and assess grantees, provide input on community needs, and verify nonprofit status of groups. Donors must arrange and support their own grantmaking and monitoring structure.
Start-up Costs    
Initial costs None. Several thousand dollars for legal and accounting expenses and filing fees.
Minimum contribution $10,000 payable over four-years. Typically millions of dollars.
Administrative Requirements    
Ongoing costs Pooled administration; annual fee. Several thousand dollars for legal and accounting expenses and filing fees.
Reporting Community Foundation handles reporting. Annual 990 tax form must be filed.

Comparing Two Approaches of Giving

Items to consider when establishing a fund.

Should I Start my Own Foundation?

A father and daughter.If you have less than $10 million, a community foundation is usually a more efficient and economically effective option. Other perks: Greater tax advantages and less administrative work.

What is an endowment? When you create a charitable fund through your community foundation, you have the opportunity to benefit the community forever with a permanent endowment. Your gift is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift—and all future earnings from your gift—is a permanent source of community capital, helping do good work today and in the future.

To learn more about the advantages of working through the Foundation, please click here [PDF].

Address

649 John Fitch Hwy
Fitchburg, MA 01420
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Contact

Phone: 978-345-8383
Fax: 978-345-1459
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