Planned Giving

Frequently Asked Questions

1. What assets can I use to make a gift to a fund at the Delaware Community Foundation?
Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g., real estate, personal property).

Through your will or with a distribution from a retirement plan or life insurance policy, your gift can be designated to a fund at the Delaware Community Foundation in accordance with your wishes.

2. What sort of gift plans also return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity, or charitable remainder unitrust or annuity trust.

3. What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:

• Outright gifts to the Delaware Community Foundation generate a full income-tax charitable deduction. Outright gifts of long-term appreciated securities are deductible at fair market value, with no recognition of capital gains — a great tax benefit!
• Gifts of personal property, like art, books and collectibles, are fully deductible so long as they are relevant to our mission. We can advise you on this point. Click here for contact information.
• Bequests do not generate a lifetime income tax deduction. They may provide estate tax benefits.
• Similarly, life insurance distributions to the Delaware Community Foundation are not income-tax deductible, but are exempt from any estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, you may deduct annual gifts that offset premium payments (for more details on this point, see Question 4 below or the cash surrender value of a paid-up policy).
• The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.

4. I want to set up a life insurance policy, name the Delaware Community Foundation as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. The IRS would not consider that a "completed gift" – they'd say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of the policy for current income tax benefits.

5. I’ve heard that transferring gifts of IRA assets to charity is advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403(b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person's death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75% on large taxable estates. The tax will be paid at some point—by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support your favorite causes with a fund at the Delaware Community Foundation!

6. I'm interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse?
Your charitable gift annuity will be treated as a general obligation of the Delaware Community Foundation. We have an unbroken record in making timely payments to our annuitants, and that ongoing responsibility is a key element in our financial policies.