Advantages of Establishing A Fund With the M & M Area Community Foundation
Q: Tax treatment of cash gift
A: Cash gifts are tax deductible
Q: Tax treatment of gifts of appreciated publicly traded securities
A: Full market value deduction
Q: Excise taxes
A: No excise taxes
Q:Required payout
A: No required payout. Can accumulate income toward a sizable project or grant. Has flexibility to hold low yield property
Q: Incorporation & tax exemption
A: Automatically covered. No paperwork or extra costs incurred unless there are special legal requirements.
Q: Privacy
A: Individual donors or grants can be kept private. Community Foundation can serve as a buffer between donor and grant seekers.
Q: Investment, auditing, accounting and tax returns
A: The Foundation handles all investments and accounting. Foundation files annual tax return and provides annual independent audit.
Q: General administration
A: Community Foundation handles all financial and administrative management.
Q: Grant Administration
A: The Community Foundation can help identify potential recipients, investigate applicants, make grant payments, and monitor performance.
Q: Costs
A: Contact the Community Foundation for more information.
Q: Pass ownership of a company to children
A: Can avoid gift and capital gains taxes
Q: Sell a company
A: Can reduce capital gains taxes
Q: Provide income from company equity
A: Can avoid capital gains taxes
Q: Create a private foundation
A: Permitted even with closely held stock
Q: Has excess retained earnings
A: Can avoid excess retained earnings
Q: Corporate giving programs
A: Provides management services, tailors giving to individual needs and interests of the company, eases administrative burden
