Year-end giving considerations

The Fund Advisory Committee of the Perkins County Community Foundation Fund, PCCFF, encourages local residents to consider year end contributions to their favorite charity or non-profit organization. That may be a local church, regional service organization, youth support groups, for example, for folks to fulfill their philanthropic objectives.

There are a variety of opportunities to make contributions or gifts to charitable organizations. The following provides some examples.

Cash contributions may be the easiest and quickest option for giving. For achieving tax deductibility, one should make sure that the recipient has 501-c-3 or equivalent status with the IRS.

Contribution of marketable appreciated securities may avoid tax consequences, such as capital gains tax, of other conversion methods. One can receive a tax deduction for the full value of stocks.

Individual Retirement Accounts, IRA’s, may be gifted through “required minimum distributions” when one reaches certain retirement age for traditional IRA accounts. One should consult with managers of those accounts for details.

A gift of real estate is an option, but is more complicated to process. Even farm equipment has been provided as charitable gifts.  Professional advisors would likely be needed to provide assistance.

Gifts of commodities by agricultural producers, including grain or livestock, provide several advantages. There generally is no income or self-employment tax on the gift.  Producers can still claim expenses incurred on the production of the commodity. As a result, the contribution is more valuable than a cash contribution.  The commodity can come from the field or storage, but cannot be under contract. Ownership is transferred to the gifted organization as part of the transaction. Financial advisors should be contacted to determine if this method is appropriate for the individual producer. 

As one can see, there are a range of ways for residents to give back to their community or preferred charitable organizations. One should remember that there are numerous parties that should be consulted or who can assist in gifting transactions, including accountants, attorneys, financial advisors, non-profit consultants and others.

For additional information or for instructions and documenting forms for gifts of commodities, contact Michelle Ross, PCCFF treasurer at Pinnacle Bank or 308-882-8469.

The author is Chair of the Fund Advisory Committee of the Perkins County Community Foundation Fund.  PCCFF has a vision of “vibrant communities and high quality of life for the County”. The Fund maintains an unrestricted endowment to support local projects that provide positive community impact. The PCCFF is a nonprofit 501c3 affiliate of the Nebraska Community Foundation.