Advantages of Establishing A Fund With the M & M Area Community Foundation

Tax treatment of cash gift

Cash gifts are tax deductible

Tax treatment of gifts of appreciated publicly traded securities

Full market value deduction

Excise taxes

No excise taxes

Required payout

No required payout.  Can accumulate income toward a sizable project or grant

Has flexibility to hold low yield property

Incorporation & tax exemption

Automatically covered.  No paperwork or extra costs incurred unless there are special legal requirements.

Privacy

Individual donors or grants can be kept private.  Community Foundation can serve as a buffer between donor and grant seekers.

Investment, auditing, accounting and tax returns

The Foundation handles all investments and accounting.  Foundation files annual tax return and provides annual independent audit.

General administration

Community Foundation handles all financial and administrative management.

Grant Administration

The Community Foundation can help identify potential recipients, investigate applicants, make grant payments, and monitor performance.

Costs

Contact the Community Foundation for more information.

Pass ownership of a company to children

Can avoid gift and capital gains taxes

Sell a company

Can reduce capital gains taxes

Provide income from company equity

Can avoid capital gains taxes

Create a private foundation

Permitted even with closely held stock

Has excess retained earnings

Can avoid excess retained earnings

Corporate giving programs

Provides management services, tailors giving to individual needs and interests of the company, eases administrative burden