The Community Trust enables you to donate to existing funds or create your own endowment fund using a variety of methods. We encourage you to discuss this information with your professional advisor, as this information is general and is not intended as legal advice.
Current Gifts
Current gifts will allow you to receive an immediate tax deduction. These gifts usually take the form of cash and appreciated stock. Donations of appreciated stock receive a charitable deduction for the full fair market value of the gift while the donor avoids capital gains tax on the transfer of assets. Under certain circumstances, the Trust can also accept closely held stock and gifts of personal or real property. The Trust’s office can provide advice in advance for these types of donations.
Gifts of Stock or Appreciated Securities
Life Insurance
If you have a life insurance policy that you no longer need, consider assigning The Community Trust as the owner of the policy. The Community Trust will receive the cash proceeds upon death of the insured, and you will receive a tax deduction for the approximate cash surrender value. If you wish to continue paying premiums on the policy, these premiums might also be deductible for tax purposes in addition to the approximate cash surrender value. Again, we encourage you to discuss this information with your professional advisor.
Bequests
You may establish a fund or contribute to an existing fund through a bequest in your will. Bequests are a legacy made to The Greater Lynchburg Community Trust set forth in your Last Will and Testament. You may designate a percentage of your estate, a specific dollar amount, or the residue of your estate to The Community Trust.
See our Sample Bequest Language section for more information.
Charitable Gift Annuity
This technique allows you to receive a current charitable income tax deduction and retain an income for life.
Charitable Remainder Trust
You can establish this type of trust in order to obtain a current income tax deduction as well as other tax benefits while retaining income payments for yourself or other beneficiaries. The Trust will receive the residuary amount upon your death and will use these proceeds to establish a named fund according to your direction.
Charitable Lead Trust
This form of trust allows you to contribute annual payments to The Community Trust over a specified period of time to be used in establishing a named fund according to your directions. When the trust terminates, the proceeds will go to the named beneficiaries of the trust. This form of trust is appropriate for substantial gifts intended to shelter the appreciation of assets from estate taxes while providing payments to The Community Trust.
Private Foundation Transfer
Many trustees of private foundations have found that the demands of administering and making grants has become burdensome and costly. Assets of the private foundation may be transferred to The Community Trust, and a fund in the same name is established. The trustee is freed from the administrative burdens but continues as an advisor to the fund.
Click here for more information on comparing Community Foundations to Private Foundations.
