People often ask “what’s the best way to make a gift to Catholic Foundation of Southwest Iowa?” Our answer: “It’s what works best for you.” Some people may opt for writing a check or transferring appreciated stock to save on capital gains tax. Others might prefer to make their gift by bequest or through a beneficiary designation because they want the flexibility of controlling their resources. But, for many people, combining several options will be the best way to make the greatest charitable impact.
As an example, take a look at two people, Sarah and Jason, who both want to make a gift of $100,000, but take different approaches because of their specific goals:
Sarah wants to see her gift at work as soon as possible, but she also has concerns about retirement and making sure she doesn’t run out of money. She decides to:
- Transfer outright to Catholic Foundation of Southwest Iowa highly appreciated stock, currently valued at $30,000 and paying no dividends. She’s pleased to know her gift is making a difference now, but also pleased to avoid the capital gains tax she would have paid if she’d sold the stock.
- Contribute $20,000 cash for a charitable gift annuity, providing her a life-time stream of income, some of which will be tax-free. Catholic Foundation of Southwest Iowa will invest the contribution, make the payments, and at her passing the remainder will be available to support our work.
- Provide for a $50,000 bequest to Catholic Foundation of Southwest Iowa in her will. This allows Sarah the security of having access to these assets “just in case” during her lifetime.
Jason wants to establish a named endowment, but prefers to spread out the funding. He opts to:
- Sign a pledge to contribute $10,000 for each of the next 5 years.
- Name Catholic Foundation of Southwest Iowa as a beneficiary of his retirement plan in the amount of $50,000, with the funds directed to his endowment.
Given the unique circumstances for each individual, the combinations for making a gift are too numerous to list here. As you think of your giving to Catholic Foundation of Southwest Iowa we’re happy to talk with you about how to make it fit just right for you.