The Foundation is able to accept a wide variety of assets, including:
Cash, usually in the form of a check, is an easy and convenient way to support worthy causes in the community. Gifts of cash enable your clients to claim a tax deduction of up to 50% of their adjusted gross income in any one year when itemizing deductions, with the excess, if any, carried forward for an additional five years. Actual savings from gifts of cash depend upon a donor's tax bracket - the higher the tax bracket, the higher the deduction.
Gifts of appreciated securities offer important tax advantages, since their full fair market value is deductible as a charitable contribution up to 30% of adjusted gross income each year when itemizing deductions. Like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years. Capital gains taxes do not have to be paid on the appreciated portion of the gift.
After the Foundation liquidates the securities, the value of the gift (net broker's commission and fees) is available to support your client's charitable goals. The Foundation can accept gifts of publicly traded stock, closely-held stock, restricted stock, partnership interests (including family limited partnerships), and mutual funds. Please be sure to notify The Winston-Salem Foundation of your client's impending stock transfer.
Naming the Foundation in a will or living trust is a popular way to support the community. A charitable bequest can be a specific dollar amount, a percentage of your client's estate, or what remains after other bequests – including those to family members – are made. Or, a will can specify that heirs receive lifetime income from the estate, with the remainder going to the Foundation for charitable purposes. The bequest can flow into any type of fund in order to meet your client's charitable goals. Click here for sample bequest language.
The Foundation can be named as a beneficiary of a variety of assets, including: retirement plan assets, life insurance, commercial annuities, bank accounts, certificates of deposit, or brokerage accounts. When completing beneficiary designation forms, note our legal name is The Winston-Salem Foundation and our EIN is 56-6037615.
For those whose need for life insurance has decreased, making a gift of an unneeded policy can be a convenient and effective way of accomplishing charitable goals. When your client transfers ownership of a cash value policy to the Foundation, he/she becomes eligible for a charitable tax deduction based on its current value. A gift of life insurance can also be a part of your client's estate planning.
Retirement plan assets are often the best to give because they are so heavily taxed if left to heirs at death. Income and estate taxes can easily consume over 65% of the account balance. By naming the Foundation as the remainder beneficiary of these assets, your client can leave a very efficient legacy.
Under current legislation, holders of traditional and Roth IRAs who are at least 70-1/2 years old can make direct charitable transfers up to $100,000 per year per taxpayer. As a qualified public charity, The Winston-Salem Foundation can help your client to execute the transfer to an existing fund or to create a new one. Please note: the law does not allow charitable rollovers to Donor-Advised Funds, Charitable Remainder Trusts, or supporting organizations. For more information, click here.
The Winston-Salem Foundation can accept gifts such as houses or other personal residences, farms, commercial buildings, or undeveloped land. A gift of real estate that has been owned for more than a year entitles your client to the same federal tax advantages as those for gifts of securities - a tax deduction for the fair market value of the property - while allowing avoidance of a capital gains tax.
The Foundation can also accept gifts of personal property, such as artwork and jewelry. After expenses and the liquidation of the personal property, the full value of the gift is available to support your client's charitable goals.
Note: Gifts of real estate and personal property in excess of $5,000 require a qualified appraisal to determine the charitable deduction.