Your Tax Advantage


By establishing an endowed fund at a community foundation, donors qualify for maximum deductibility for income, capital gain, and gift and estate tax purposes. These tax benefits provide a win-win situation for donors and for the community foundation.

Based on the type of gift you are giving, each offers different tax advantages.

Donors qualify for immediate income tax deduction when irrevocable gifts are made available for current use or committed now for future use. The income tax deductions can be taken annually up to a portion of adjusted gross income and carried forward an additional five years.

These include certain charitable lead trusts, some gifts of life insurance, and of course, outright gifts of cash, appreciated stock (publicly traded or closely held) or real estate.

Donors realize Capital Gains tax savings when long-term appreciated property is donated to the Foundation.

Donors can achieve Estate and Gift Tax Relief when they make a provision for the foundation in their will. Bequests can help donors reduce or even eliminate estate taxes. The Elk county Community Foundation can provide sample bequest language.

It is also possible to name the Foundation as the beneficiary of a life insurance policy or qualified retirement plan

To learn more about the tax benefits of giving thought The Elk County Community Foundation, please contact us.