As a public charity, the Eau Claire Community Foundation has the maximum possible flexibility in accepting different classes of assets, including outright gifts of cast, appreciated securities, closely held stock, real estate, or other personal real property.
Cash, usually in the form of a check, is the most common form for charitable gifts. Donations of $100 or more will receive a mailed receipt. If you receive a good or service, such as a meal or event ticket, when you make a donation of $75 or more, you will receive a separate acknowledgment with receipt in the mail. If you would like to request a receipt for a donation under $100, please email firstname.lastname@example.org.
Checks (personal and bank checks as well as those from other fiduciary organizations) should be made payable to: Eau Claire Community Foundation. If there is a specific fund to which the contribution is being directed, the Fund's name should be written on the check's memo line. We kindly request that checks not be made payable to any particular fund. If you receive a good or service, such as a meal or event ticket, when you make a donation of $75 or more, you will receive a separate acknowledgment with receipt in the mail. If you would like to request a receipt for a donation under $100, please email email@example.com.
Donors who contribute long-term appreciated securities to the Foundation get a double federal tax benefit. Gifts of appreciated securities are deductible at their full market value if the donor owned the, for longer than 12 months. Fair market value is the mean between the high and low trades on the date of the gift. Capital gains tax on the stock’s appreciation is completely avoided. You can click on Stock Delivery Instructions for specific information about this donation process, or you can ask your broker to call the Foundation at (715) 552-3801 or email firstname.lastname@example.org.
If you are planning to donate near the end of the year, please call us with your gifting instructions by December 15 in order to guarantee timely processing and ensure that the funds will be transferred for gifting purposes.
Closely Held Stock
These shares in a privately owned business are usually owned by family members, top management, and the corporation itself. The stock can be contributed outright to the Foundation and the donor is entitled to a deduction for the appraised fair market value. The donor also avoids the potential capital gains tax on any appreciation in the value of the stock.
After the gift, the Foundation may sell the stock to the corporation or to other shareholders for cash. There can be no prior agreement between the Foundation and potential buyers before the gift is made.￼￼
The donor is entitled to a deduction for at the full value of the stock up to 30% of the donor’s adjusted gross income. A qualified appraisal will likely be required.
Gifts of real estate include homes, farms, vacation homes, commercial buildings, and income-producing or non-income-producing land. Gifts of real estate, if the donor owned them for more than one year, are deductible depending on the donor’s adjusted gross income in the year of the gift with a five-year carry forward period, if required. Gifts of real estate may be contributed as outright gifts, as a remainder interest (where donor maintains a life estate), as a contribution to a charitable remainder trust, or may be gifted to the Foundation through a donor’s will. Such gifts will be reviewed by the Foundation’s staff, legal counsel, and Board of Trustees.
Tangible Personal Property
Gifts of tangible personal property include art, antiques, collectibles, jewelry, rare books, and stamp and coin collections. In most cases, the Foundation’s use of the contributed property will be considered unrelated to the Foundation's tax-exempt purposes, limiting the client to a charitable deduction for his or her cost basis in the property. The donor must agree that the property can be sold unless the Foundation agrees to use the property for a purpose related to its exempt purpose.
The Foundation can accept mineral royalty interests. A gift of a working interest will incur unrelated business income tax liability for the Foundation, which may preclude acceptance of such a gift. The Foundation will require the donor to provide information about the nature of the interest; any encumbrances; the status of taxes, litigation, and regulatory actions; and a title opinion, if available. Other information may be required.
Gifts of life insurance enable donors to make a future major gift to the Foundation at a relatively modest cost. Donors need to be aware that retained ownership of the policy by the donor results in its inclusion in the donor’s estate; however, policy proceeds are free of income tax to the beneficiary. Donors may name the Foundation as the owner and beneficiary of existing policies that they no longer need. Alternatively, donors may purchase new policies and name the Foundation as the owner and beneficiary. Donors are entitled to a federal income tax deduction for the cash surrender value in the year the gift is made.
Mutual funds can be excellent assets to contribute to the Foundation. The fair market value of a mutual fund share is its public redemption price on the valuation date. Gifts of mutual funds are deductible at their fair market value depending on the donor’s adjusted gross income, with a five-year carry forward, if required.
Qualified Retirement Plan Assets
Retirement plan assets, such as IRAs, can make ideal charitable gifts. Qualified retirement plans enjoy favorable tax treatment before retirement, but may be severely taxed upon the plan participant’s death because they are considered "IRD property." IRD stands for "income in respect of the decedent." Because the owner of an IRA would have been taxed on distributions from the plan if still alive, anyone receiving those plan assets on his death must also pay income taxes when the IRA assets are distributed unless they are given to a qualified charity. Qualified plans may be subject to both income tax and estate tax, which can total 75% or more, depending on the size of the overall estate. If the client is considering charitable gifts, it may be advantageous to name the Foundation as the full or partial beneficiary of the retirement plan, and use other, non-IRD assets for gifts to individuals. Estate tax and income tax can be avoided if the plan participant designates the Eau Claire Community Foundation by beneficiary designation to receive all or part of the plan at death.