Cash, usually in the form of a check, enables you to claim a tax deduction of up to 50% of your adjusted gross income in any one year when you itemize deductions, with the excess, if any, carried forward for an additional five years. Actual savings from gifts of cash depend on your tax bracket—the higher the tax bracket, the higher the deduction.
Gifts of appreciated securities offer important tax advantages, since their full fair market value is deductible as a charitable contribution up to 30% of your adjusted gross income each year when you itemize deductions. Like gifts of cash, deduction amounts that exceed the limit can be carried forward for up to five additional years. You do not have to pay federal or state capital gains taxes on the appreciated portion of the gift.
After MCF liquidates the securities, the full value of the gift is available to support your charitable goals.
We can accept gifts of publicly traded stock, publicly traded bonds, closely held stock, restricted stock, and mutual funds.
MCF can accept a gift of a house or other personal residence, farms, commercial buildings, and income-producing or non-income-producing land. A gift of real estate that you have owned for more than a year entitles you to a tax deduction of the fair market value of the property—while allowing you to avoid paying capital gains tax.
We can consider gifts of personal property, such as artwork and jewelry. This type of gift must be discussed individually with someone at the Foundation.
Naming the Foundation in your will or living trust is a popular way to support the community. A charitable bequest can be a specific dollar amount, a percentage or all of your estate, or what remains after other bequests are made. Or, your will can specify that your heirs will receive lifetime income from your estate, with the remainder going to the Foundation for charitable purposes. If you choose, the bequest can flow into a donor-advised fund, and your children can be named as successor advisors, recommending grants from the fund. We can provide sample language for naming MCF in your bequest.
Retirement Plan Assets
For a gift through your estate, retirement plan assets are often beneficial because they are so heavily taxed if left to heirs. Income and estate taxes can easily consume over 65% of the account balance at death. By naming MCF as the remainder beneficiary of these assets, you can leave a charitable legacy.
Making a gift of an unneeded life insurance policy can be an effective way of achieving your charitable goals. When you transfer ownership of a cash value policy to MCF, you become eligible for a charitable tax deduction based on its current value. You can name the Foundation as the beneficiary of the policy.
Transfer of private foundation
Once all current obligations of the private foundation have been satisfied, and a reserve for anticipated expenditures through the completion of the conversion process has been created, a fund can established at MCF into which the private foundation’s assets are distributed. MCF will then work with the California Attorney General’s office to ensure all necessary filings are submitted and approved.
Royalties and distribution rights
The Foundation may accept gifts of royalties or distribution rights on published works (such as books or films) where there is clear evidence of marketability or assurance of an income stream. A qualified appraisal is required.
Business interests, including partnerships and interests in LLC's
If you have appreciated assets in the form of illiquid assets, such as privately held C- and S-Corp stock, limited partnerships or LLC interests, they will often have a low cost basis and high current market value - resulting in large capital gains taxes when sold. By donating a portion of these highly appreciated, privately -held business interests to open a fund at MCF, you can take a full, fair market value income tax deduction for the donation while also potentially eliminating capital gains tax liability on the sale.