Gifts
Securities
Real Estate
Bequest
Retirement Plan Assets
Charitable Gift Annuities
Charitable Remainder Annuity Trusts
Charitable Remainder Unitrust
Chairtable Lead Trusts
Retained Life Estate
Fixed or Variable Annuities
Life Insurance Policy

Additional Information
Designating Your Gift
Legal Wording

Gifts

A gift of cash is the simplest way for you to provide immediate support to the Cambridge-Isanti High Dollars for Scholars Foundation. You may deduct a cash gift for the year of the gift, up to a limit of 50 percent of your federal adjusted gross income.  Any excess may be carried forward for up to five additional years and deducted subject to the same annual limit.

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Securities

Gifts of stocks, bonds, or mutual fund shares held more than one year can be especially attractive. Such gifts provide an immediate benefit to the Cambridge-Isanti Dollars for Scholars Foundation, and you receive a double tax benefit. You avoid capital gains tax on the appreciation in the donated asset, and the amount of your charitable gift is the property’s current fair market value.  You may claim an immediate deduction, up to 30 percent of your adjusted gross income. In addition, you may carry forward any unclaimed portion of the gift for up to five additional years and deduct the carry forward contribution subject to the same annual limit.  Because the donated property is appreciated, the benefit of your gift to the Cambridge-Isanti Dollars for Scholars Foundation may well be considerably greater than its original cost to you.

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Real Estate

Gifts of real estate generally have the same tax advantages for you as gifts of appreciated securities.  You may claim an immediate deduction, up to 30 percent of your adjusted gross income. If the real estate has appreciated, you may benefit from a bypass of capital gains tax. A gift of real estate you have held for more than one year entitles you to a charitable deduction for the property’s full fair market value, as determined by an independent appraisal.  

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Bequest

Making bequests allows you to keep your assets during your lifetime. You may create special funds in your name, or in memory of loved ones. Charitable bequests are normally deductible in full for estate tax purposes.

A will or living trust is a statement about what matters most in your life, and ensures that your intentions are clearly expressed and will be followed by those administering your estate. You can provide for family, friends, others, and the Cambridge-Isanti Dollars for Scholars Foundation. Making a charitable bequest - in the form of property, a stated dollar amount, or a specified percentage of your estate - to the Cambridge-Isanti Dollars for Scholars Foundation allows you to keep your assets during your lifetime. Besides listing the Cambridge-Isanti Dollars for Scholars Foundation in your will, you may also sign a memorandum of agreement that specifies precisely how your gift is to be used.

To make sure your will accomplishes your goals according to your wishes; we recommend that you obtain the professional counsel of an attorney.

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Retirement Plan Assets

After providing for yourself and your family, you can use excess retirement funds to make a convenient and cost-effective charitable gift to the Cambridge-Isanti Dollars for Scholars Foundation. It is very simple. Using the "beneficiary designation" for your qualified retirement plan account or IRA, you name the Cambridge-Isanti Dollars for Scholars Foundation to receive any remaining assets in the account. If left in your estate, retirement assets are subject to income, as well as, possible estate taxes. This makes them a poor asset to pass on to heirs, but an excellent asset to use for a charitable estate gift.

You may also wish to consider establishing a charitable remainder trust with retirement account assets. The trust would begin at your death and can provide an income for family members or others for their lives or a term of years.

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Charitable Gift Annuities

A charitable gift annuity is one of the easiest and most popular ways to make a charitable gift and receive an annual income. A gift annuity is a combination of a gift and an investment. You transfer cash or securities to the Cambridge-Isanti Dollars for Scholars Foundation, which pays a fixed annual amount to you and/or another beneficiary.

You also receive an immediate income tax deduction, based on the "remainder" value of your gift, i.e., the value of the property you transfer to the Cambridge-Isanti Dollars for Scholars Foundation minus the present value of the annuity. In addition, you bypass part of the capital gains tax if appreciated property is used to fund the annuity.

An additional advantage of a gift annuity is that in most cases part of the annual income you receive will be a tax-free return of principal. The annuity rate and the amount of your deduction increases with the age of the annuitant(s), as of the time you establish the  annuity. This makes the charitable gift annuity more attractive for senior donors.

Donors who want to defer payment benefits until a later date but want a current income tax deduction can establish a deferred gift annuity.

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Charitable Remainder Annuity Trusts

The charitable remainder trust is similar to other types of trusts except that it has a charitable beneficiary. A grantor transfers property irrevocably to a trust and specifies how trust income and principal are to be distributed. The trust may be created to become effective during life or at death.

Like the charitable gift annuity, the charitable remainder annuity trust provides one or more individuals with fixed annual income for life. You receive a fixed percentage of the initial value of the assets placed in the trust. It is an ideal arrangement for donors who do not want their income stream tied to market performance. Unlike the gift annuity, annuity trust assets are invested and managed separately. The annuity trust can be established for more than two life times, and can be created for a specified term of up to 20 years.

You will be allowed an income tax deduction for the present value of the "remainder interest" in the trust. If you fund the trust with appreciated securities you have held more than one year, the value of the remainder interest will be computed from the fair market value of the property, and your annual deduction limit will be 30 percent of adjusted gross income. In addition, you avoid capital gains tax on the appreciation. If you fund the trust with cash, the value of the remainder interest will be computed from the amount of cash, and your annual deduction limit will be 50 percent of adjusted gross income.

To qualify for the charitable deduction for federal tax purposes, the charitable remainder trust must conform to the requirements.

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Charitable Remainder Unitrust

The primary features of the charitable remainder unitrust are that it provides for the payment to the income beneficiary in an amount that may vary. The payment must equal a fixed percentage of the net fair market value of the trust assets valued annually. The grantor determines the fixed percentage upon creation of the charitable remainder unitrust. It must be at least 5%. Depending on your estate planning objectives, a choice may be made to emphasize the charitable deduction or the annual return. A charitable remainder unitrust is worth considering if you wish to provide yourself with a hedge against inflation. Charitable remainder unitrust assets are invested and managed separately. The annual payment to you and/or other beneficiaries is a specified  percentage of the trust assets as opposed to a fixed amount. The trust assets are revalued annually and your income is adjusted accordingly. If the value goes up, so does the annual payment. You may add property to the trust at any time. Charitable remainder unitrusts can be for multiple lifetimes or for a term of up to twenty years. The age and minimum amount requirements for unitrusts are the same as for annuity trusts. In addition, tax benefits are roughly the same as those for the annuity trust, although the deductible charitable gift for a given size trust will be slightly different. You may make additions to a charitable remainder unitrust of any amount at any time.

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Charitable Lead Trusts

A charitable lead trust allows you to provide for a sequence of annual gift payments to the Cambridge-Isanti Dollars for Scholars Foundation and have the assets transferred to your family in the future. This device reduces gift or estate taxes (and possibly gift and generation skipping transfer taxes if the ultimate distribution is to grandchildren or later generations). You decide how long payments to the Cambridge-Isanti Dollars for Scholars Foundation will be made and when distribution of the assets to your family will begin.

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Retained Life Estate

You may irrevocably deed your residence or farm to the Cambridge-Isanti Dollars for Scholars Foundation but reserve the right to use it during your lifetime. If in the future you wish to transfer your life estate rights to the Cambridge-Isanti Dollars for Scholars Foundation you may do so. An immediate partial income tax deduction and a federal estate tax deduction are both available for this type of gift.

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Fixed or Variable Annuities

Fixed or variable annuities are contracts between you and the insurance company. With a fixed annuity, principal and interest are guaranteed for a specific time period regardless of current market conditions. Variable annuities offer a range of investment or funding options. With a variable annuity, principal and interest are not guaranteed depending on the performance of your investment options. By naming Cambridge-Isanti Dollars for Scholars Foundation as the beneficiary you will avoid ordinary income tax on deferred accumulations.

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Life Insurance Policy

If you're thinking about a contribution to us, a gift of your life insurance could be a sensible, as well as, generous course of action. By naming the Cambridge-Isanti Dollars for Scholars Foundation as an irrevocable beneficiary or owner of the policy, you can receive an income tax deduction.

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Additional Information

Designating Your Gift

When considering a gift to the Cambridge-Isanti Dollars for Scholars Foundation, you may want to designate your gift for an endowed or unendowed fund in your name, or in memory of a loved one. 

Endowments provide perpetual support. The principal of the gift is invested and the income is used as an enduring source of support. In this way, an endowment can dramatically increase the value of your contributions. Unendowed funds allow you to make an immediate impact.

Depending on what is being endowed, the gift amount for endowments may vary. For example a scholarship can be endowed with a minimum of $10,000.  The funds are invested by the Cambridge-Isanti Dollars for Scholars Foundation, which has been managing and investing private gifts since its founding in 1990.

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Legal Wording

When you include the Cambridge-Isanti Dollars for Scholars Foundation in your will, you and your attorney may need to know that the Cambridge-Isanti Dollars for Scholars Foundation is a 501(C)(3), non-profit corporation.  In addition, you will need to use the legal name and address.

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