Ways to Give

SMCF provides flexibility both in terms of the methods of giving and in the procedures that ensure the effective distribution of funds. There are many different ways to give, each with its own distinct advantage:

Gifts of Cash
Gifts of cash are the most popular for many people who make small contributions to the Foundation. The cash gifts contributed each year help the Foundation grow and expand its support of the South Madison Community.

Securities
Contributions of securities are attractive to people who have held stocks or bonds for a long period of time, especially when the appreciation is so great that the capital gains tax would take a substantial portion of the value if they were liquidated. With gifts of appreciated securities, you are able to make a significantly larger contribution to the Foundation than the actual or original cost of those securities, so both you and the Foundation, and ultimately the community, benefit.

Life Insurance
Life insurance policies can be used as a charitable gift. You may have been paying premiums on life insurance for years, but now the protection is no longer needed. Because the policy has value and you want the Foundation to benefit, you may donate the policy to the SMCF. You will receive an immediate tax deduction usually in an amount equal to the cash surrender value. If you wish to keep the policy in force to the benefit of SMCF, your continued premium payments are also tax deductible. Alternatively, you may name the Foundation as owner and beneficiary of the life insurance policy of which the face value reverts to the Foundation upon your demise.

Gift of Real Estate
If you have owned your home, vacation home, or acreage for many years, the property may have so appreciated in value that its sale would result in a sizeable capital gains tax. If given to the Foundation, you avoid the tax and realize a charitable deduction for the full fair market value of the real estate. You may also wish to consider a gift of your personal residence reserving the right to continue to live in the house for life. You can establish an agreement with the Foundation that will entitle you to reside on the property for life and take a current income tax deduction for a portion of the fair market value of the property.

Testamentary Gift
A testamentary gift is a specific bequest in your will or testamentary trust. Such gifts are exempt from estate tax.

Charitable Remainder Trusts
These trusts are arrangements between you, a trustee, and the Foundation. You transfer cash, property or securities to the trust but retain the right to receive the income or specify a beneficiary to receive the income and determine the payout rate (the minimum return is 5 percent). After the death of the last beneficiary, the Foundation receives the assets unrestricted or will grant the asset’s income to the charity of your choice.

Private Foundation Transfers
A private foundation can efficiently and cost-effectively transfer all or some assets to SMCF, yet retain the private foundation's name and purpose. Such transfers offer tax advantages, flexibility, administrative savings, quarterly reports and automatic annual audits.