Ways to Give

Giving through a community foundation is simple and flexible. Donors may give to a current fund (Annual Report) or create a new fund that meets their charitable wishes with minimum complexity. The donor is assured of professional investments for his or her funds.

Immediate Gifts
Cash, property and stocks can be used to make gifts to establish or add to a fund. When individuals donate property or appreciated or closely held stocks, they may be eligible for a tax deduction based on the fair market value and they may also avoid capital gain and estate taxes.

Bequests (Wills)
Naming the Grand Rapids Area Community Foundation as a beneficiary in a will is often the easiest way to make a significant gift. In addition, a gift will often reduce estate and transfer taxes.

Life Insurance
If a donor wishes to name the GRACF as the sole or partial beneficiary of a life insurance policy, the charitable proceeds of the policy may avoid both income and estate taxes. Another option is to transfer ownership of a policy to GRACF. By choosing this option, donors may take an immediate income tax deduction approximately equal to the policy's surrender value.

Retirement Plan Assets
Using IRAs and other retirement plan assets is a far-sighted and thoughtful way to make a charitable contribution. It provides a donor a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes. Naming GRACF as the beneficiary of a retirement plan (including IRAs, 401(k)s and profit-sharing plans) can eliminate estate and income taxes, if the gift is structured properly.

Gifts that Help You Now and Your Favorite Charity Later
A donor makes an irrevocable transfer of assets to your family fund at GRACF and in return receives a lifetime payment for a specified beneficiary (the donor, spouse, children or friends). Upon the death of the beneficiary, the assets are used for the charitable purposes of GRACF. The donor receives a current income tax charitable deduction for the remainder value of the charitable gift. These gifts, known as life income gifts, include the following:

• Charitable Remainder Trusts
Cash or property is transferred to a trust, which pays the beneficiary either a variable income equal to a fixed percentage of the trust's fair market value as determined each year or a fixed annual amount. Upon the death of the beneficiary, the GRACF receives the remaining assets assuring that they will be used for the purposes specified by the donor.

• Charitable Gift Annuities
Cash or other property is contributed to the GRACF in exchange for a commitment to pay the donor, or other beneficiaries, a specified annual amount for the remainder of the beneficiary's life.

• Deferred Gift Annuities
A deferred gift annuity is the same as a charitable gift annuity, but the payments of income are delayed until a pre-determined time.

Foundation staff are qualified to work with you and your professional advisors to structure a gift to best meet your particular situation. Staff will provide calculations on a gift using one of the vehicles mentioned.