Community Foundation of East Mississippi

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We offer a wide range of gifting options and vehicles that you can use to make gifts to the Community Foundation and to establish a charitable fund. Since we are recognized by the Internal Revenue Service as a public charity, donors are provided with the maximum tax benefits allowed by law.  Once your fund is established you can add to it at any time and in any dollar amount.

We are always happy to talk with you and your financial advisor about these opportunities in person.  If you have questions about becoming a donor, please call us at 601-696-3035 or e-mail m'lea.davis@cfem.org.

Cash

A check is an easy and convenient way to support worthy causes through the Community Foundation.  Donors may claim a tax deduction of up to 50% of adjusted gross income in any one year when deductions are itemized, with any excess carried forward for an additional five years.

Securities

Appreciated securities donated to the Community Foundation are deductible at their full market value up to 30 percent of adjusted gross income each year when deductions are itemized.  Any excess may be carried forward five additional years. The Community Foundation will liquidate the securities and no capital gains tax is paid on the appreciated part of the gift.  Securities that can be accepted include publicly traded stocks and bonds, closely-held stock, restricted stock, partnership interests (including family limited partnerships), and mutual funds.

Real Estate

The Community Foundation can accept personal residences, farms, commercial buildings, and undeveloped land.  Property owned for more than a year will qualify for a deduction based on the fair market value of the property and avoid payment of capital gains tax.  The deduction is limited for real property that is subject to a mortgage or loan.

Bequests

Bequests are one of the easiest ways to give to Community Foundation because clients retain complete control over the assets during their lifetime.  Bequests can be a specific dollar amount, a percentage of the estate, or the residual that remains after all other bequests are made.  Bequests may be made as an unrestricted gift to the Community Foundation to be used as directed by the Board.  Bequests may also be made to an existing fund or to a new fund to be established by the gift in the client’s name.  Bequests to the Community Foundation are excluded from assets for estate tax purposes.

Charitable Remainder Trusts (CRT)

A charitable remainder trust pays the client or a beneficiary designated by the client to receive regular income payments for life or a specified trust term (up to 20 years) and whatever remains will be transferred to the Community Foundation.  The client receives an immediate charitable tax deduction for the present value of the gift in the year the gift is made.  The CRT can be structured to pay fixed income or income that varies with the value of the trust.  A CRT is useful for securities and real estate that have appreciated in value but earn little income since the assets in the trust can be sold and reinvested without incurring capital gains tax.  The remainder of the trust paid to the Community Foundation may be specified as an unrestricted gift or used to establish a new fund in the client’s name.

Charitable Lead Trusts (CLT)

A charitable lead trust pays annual payments for the client’s life or for a specified number of years to a fund established at the Community Foundation.  The annual payments may be fixed or may be variable based on the value of the trust.  When the trust terminates, the trust principal is distributed to family or others designated by the client as the beneficiary.  A CLT can be established during life or through a will.  A Charitable Lead Trust shelters investment earnings from tax and offers gift, estate, and generation-skipping tax benefits.  For example, trust assets are removed from the client’s estate for estate tax purposes.

Life Insurance Policy

Life insurance provides a simple way to provide a significant gift to charity.  The client can make the Community Foundation the owner and irrevocable beneficiary of a life insurance policy.  This can either be a paid up policy or one for which the client continues to pay premiums.  The client receives a tax deduction for the approximate cost or fair market value, whichever is less.  If the policy is paid up, the client may receive an immediate tax deduction.  If not, continuing tax deductions on premium payments can be claimed for premium payments made through gifts to the Community Foundation.  Insurance proceeds can be specified as an unrestricted gift or to a special fund established at the Community Foundation.  Clients can also make a gift to the Community Foundation and replace it for their heirs with life insurance through ownership of the policy by the heirs or through an irrevocable life insurance trust.

Retained Life Estate

Clients may deed their homes or property to the Community Foundation and retain the right to live there for the rest of their lives.  The gift of the remainder interest is a charitable contribution in the year the gift arrangement is made and may result in a substantial income tax charitable deduction.  When the life estate ends, the real estate is sold and the proceeds are used as specified by the donor as an unrestricted gift to the Community Foundation or to establish a special fund in the client’s name.  This type gift removes the property from the client’s estate which may realize estate tax savings and avoids probate and estate administration expenses.

Individual Retirement Accounts and Retirement Plans

Clients may designate the Community Foundation as the beneficiary of IRAs and retirement plans.  These assets are some of the best to leave to charity because there is no estate tax or income tax due as the gift will qualify for a charitable deduction.  These same assets includable in the client’s estate or left to heirs may be taxed at a cumulative rate of over 65%.  The only document required to make this change is a beneficiary form which is available from the trustee, custodian or plan administrator.  The client retains access to all the funds during their lifetime.  The client may specify the gift unrestricted or to establish a special fund in the client’s name at the Community Foundation.

Donations may be made as an unrestricted gift to the Community Foundation, to existing funds or to new special funds created to handle tributes and memorials that 
    * honor a living person,
    * memorialize deceased persons, or
    * commemorate anniversaries or other special events.

Donors may use this giving option in many different ways such as:
    * to create a scholarship fund that honors the contributions of a retiring teacher
    * to engage a civic group in creating an emergency relief fund for a disaster
    * to support the favorite charities of a couple celebrating their 50th anniversary
    * to create a youth program in memory of a deceased child
    * or other ideas you may have.

Checks should be made payable and mailed to:

Community Foundation of East Mississippi
P.O. Box 865
Meridian, MS 39302