Join the largest donor network in the region to maximize your charitable giving impact today and into the future. There are numerous options to choose from when giving through the Community Foundation of North Central Massachusetts.
Why Open a Donor-Advised Fund with CFNCM?
Five reasons to open a donor-advised fund at a community foundation versus a commercial firm:
- Keep your giving local. Many donors prefer to keep their giving local and to support multiple nonprofit organizations. Community foundation staff have deep community insight and local charitable giving expertise to simplify your giving.
- Personal service. While you may have access to online support at a commercial firm, you’re less likely to have a relationship manager to personally assist with your grantmaking. Community foundations understand your philanthropy is personal.
- Opportunities to connect. Interested in connecting with other like-minded local philanthropists? We host networking events and public convenings to discuss philanthropy and community challenges and opportunities.
- Fees increase your charitable impact. Administrative fees for some commercial funds may be lower, but they are not re-invested into the community. Fees at the community foundation support the charitable mission of the charitable sponsor, as well as grantmaking, civic engagement and other efforts to improve the quality of life in local communities.
- Access to institutional investing. At the Community Foundation, you benefit from sophisticated institutional investment management. Our Long-Term endowment fund has returned 9.04% over ten years, net of fees. (Updated 5/31/22).
A check or credit card gift is the simplest type of charitable gift.
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 funds, contact Tammy Staal.
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].
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 Tammy Staal.
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 Tammy Staal.
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.
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 Tammy Staal.
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].
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].
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 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].
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].
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. To learn more about a gift of an individual retirement account, contact Tammy Staal.
When people want to make a difference in their community and create a family legacy, a range of options are available–from 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.
Should I Start My Own Foundation?
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
Benefits of Working Through the Community Foundation vs. Establishing a Private 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.|
|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.|
|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.|
For More Information
Director of Philanthropy 978-345-8383 Ext. 105