Why is The Community Foundation of Henderson an affiliate of CF West KY rather than a stand-alone foundation?
What are the advantages of using The Community Foundation of Henderson rather than a private foundation?
Our version of a private foundation for an individual, family or corporation is called a Donor-Advised Fund. It:
• Is easier and less expensive to establish (One-time$300 set up cost and a minimum contribution of $1,000*)
• Is easier and less expensive to maintain (Annual fee of only 1.25%**)
• Provides a greater annual tax deduction, in many cases
• Provides easy access to information about nonprofits seeking support
• Enables you to make gifts of stock options, closely held securities, insurance policies, real estate, etc. with ease and without most IRS limitations
• Lowers the administrative cost thereby increasing grant making capacity
• Permits you to time gifts without an IRS-mandated payout schedule
• Allows the avoidance of the 1-2% excise tax on investment income
• Creates the opportunity to make gifts anonymously
• Enables you to establish a legacy of caring in perpetuity – which will be overseen by committed leaders dedicated to preserving donor intent
* Grants will not begin to disburse until the fund reaches $10,000 balance
** In most cases there is also an investment management fee of 0.45%
Why should I give through The Community Foundation of Henderson instead of directly to the charity/charities of my choice?
I am interested in establishing a fund but some of my interests lie out-of-town. Can I recommend organizations beyond Henderson?
YES. Although it may sound too good to be true, time and time again, we have seen cases in which people actually increase what they can leave to their heirs through a gift to charity.
It often comes as a shock to us that taxes can take more than 50% of our estates before they reach our heirs. If you have an IRA, 401(k) or Keough, that estate tax is compounded by income taxation, as well.
But there are opportunities to leave a sizable portion of your estate to benefit your heirs and support charitable causes. To learn more about the options we can facilitate for you, or for your clients making estate plans, call us at 855-242-2395.
Donors, including individuals and corporations, who contribute to a permanent endowment fund at the Community Foundation of Henderson may be eligible for a 20% tax credit up to $10,000 per donor per taxable year.
The credit may be taken against individual income tax, corporate income tax, and the limited liability entity tax, in addition to the federal charitable tax deduction value of the gift. This tax credit may be carried forward for up to five years.
The tax credit benefit is in addition to the federal charitable tax deduction value of the gift.
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