How you can donate to the South Haven Area Community Foundation
Donating to the South Haven Area Community Foundation (SHCF) is easy and doesn’t require great wealth. No matter what you give, your philanthropic strategy will be meaningful as it is aligned with your values, life experiences and interests.
Ways to give
There are many options from which to choose when giving to SHCF. Whichever option you choose, your gift will help make the South Haven area a community that nurtures every person – a place where we all love to live.
To date, the South Haven Area Community Foundation has awarded over $450,000 to local non-profits and helped fund programs like:
- The Riverfront Concert Series
- Jazz Festival
- South Haven Speaker Series
- South Haven Theater Productions
- Youth Art Camp
- Youth Summer Camps
- South Haven Performance Series
Top international pianist Ikuyo Nakamichi – August 5, 2018 | South Haven Performance Series
You can start supporting our community now with an outright gift of:
A cash gift is the simplest way to establish a fund or give to an existing fund. Cash gifts are fully deductible as itemized deductions up to 60 percent of the donor’s adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years.
Gifts of appreciated securities (stock, bonds and most mutual funds) also provide tax advantages. If you have held the securities for one year or longer, the current value generally is tax-deductible as an itemized deduction up to 30 percent of your adjusted gross income, with a five-year carryover if the gift amount is more than the 30 percent limit.
We can accept a gift of a house or other personal residence, farm, commercial building and income producing or non-income producing land. A gift of real estate you have owned more than a year entitles you to an itemized tax deduction for the fair market value of the property and you avoid paying capital gains taxes.
When you name SHCF as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate itemized tax deduction that approximates the cash surrender value of the policy. All premium payments made thereafter are qualified as a charitable contribution itemized deduction.
Contributions from an Individual Retirement Account
If you are over 70-1/2, you can make a contribution from your IRA which can lower your taxable income and make your charitable donations go farther. A Qualified Charitable Distribution (QCD) is made by asking your IRA administrator to make a contribution from your account directly to a charity.
If you are 72 or over, the QCD reduces the amount of your annual Required Minimum Distribution (RMD) which if withdrawn directly to you would result in taxable income. You may make a QCD from your account up to $100,000 per year. Your tax consultant or financial advisor can assist you in this process. If you make a contribution to the South Haven Community Foundation, you will need our Federal Tax ID which is 20-3841038.
Giving through your estate plan enables you to maintain control of your assets during your lifetime, yet support our community and possibly give more than you ever thought you could. You can give through your estate plan by designating us as the beneficiary of:
A charitable bequest can be as a specific dollar amount, a percentage of your estate or what remains after other bequests are made.
Your Retirement Plan
Individual Retirement Accounts or other qualified retirement plans are often one of the best types of assets to leave to charities because they are taxed so heavily when left to heirs. When you leave retirement plan assets to non-profits – such as the SHCF – 100 percent of the gift will be available to support your charitable interests.
A Gift that Provides Income
Charitable Gift Annuity
When you establish a Charitable Gift Annuity you can receive guaranteed income for life, benefit from an immediate itemized tax deduction and leave a legacy that will support the causes that are important to you forever. Payments are based on your age: the older you are the greater the annuity payment. If you choose, you can receive an income tax deduction now and defer receiving the annuity payments until a future date of your choosing. After receiving annuity payments for life, the remainder interest may be used to establish a named charitable fund or be added to an existing fund. The tax advantages of both a current and a deferred annuity are two-fold. First, you receive an immediate charitable income tax deduction when you create your annuity. Second, a portion of the payments you receive may be treated either as tax-free return of principal or long-term capital gains. These tax advantages increase the effective value of the annuity payments.
Charitable Remainder Trust
A charitable remainder trust offers you a great deal of flexibility. Payments may be made to you or another beneficiary for life or a specified number of years. The income beneficiaries annually receive an amount equal to a fixed percentage of the trust’s fair market value, or a fixed dollar amount. A charitable remainder trust may be set up during your lifetime or through your will. The eventual distribution to SHCF will only take effect after the death of the trust’s income beneficiaries, or at the end of the specified number of years. At this time, the remainder of the trust transfers to the SHCF to support your charitable giving goals.
A Charitable Lead Trust
A Charitable Lead Trust enables you to make significant charitable gifts now while transferring substantial assets to beneficiaries later. A trust is set up from which the SHCF receives annual payments for your life or for a specific number of years. These funds may be used to establish a fund at SHCF or add to an existing fund. When the trust terminates, the principal is returned to you or distributed to others you designate. The trust assets pass to the recipients at reduced tax cost – sometimes even tax-free.
A Retained Life Estate
You can turn your property’s value into community good by making a gift of real estate to the SHCF. You can continue to live in and fully enjoy your home (or vacation property) as long as you like while giving the future ownership of it to the SHCF. This is called a Retained Life Estate. The gift of the “remainder interest” is a charitable contribution in the year the gift arrangement is made, which may result in a substantial income tax itemized charitable deduction. When the life tenancy terminates, the SHCF becomes the owner of the property. The proceeds of the property’s sale may be used to establish a fund at the SHCF or add to an existing fund.
List of Funds
As with all donations you may designate which fund you wish to receive your donation by writing it in the memo line. Click here to read more about our funds.
All donations help support vital work in the South Haven area. Whatever amount you donate, rest assured the money will be put to good use.
Why you should donate to the South Haven Area Community Foundation
In addition to benefiting the community in general, there are advantages to those who choose to donate to the Foundation.
The Foundation qualifies as a 501(c)(3) public charity under federal law. That means that contributions are tax deductible under section 170 of the IRS code. In 2021, cash charitable gifts of up to $300 per eligible taxpayer, or $600 for a married filing joint tax return, can be deducted for federal income tax purposes regardless if you claim itemize deductions.
Flexibility & Simplicity
Donors may determine the purpose for which gifts are to be used, or leave all or part of the decision to the Board of Trustees. Donors can establish a named fund or give anonymously. One contribution to the Foundation may benefit a number of needs and charitable organizations in the community.
Contributions to the Foundation are placed in a pooled endowment, generating income forever. Only the earnings from endowed funds are used for grants, allowing the fund to grow over time. Additional gifts may be made at any time, by any donor, in any amount, thereby increasing the fund and enabling the donor to maximize their tax benefit.
Professional Management With Low Administration Fees
There is no cost to establish a fund and our fees are much lower than the cost of administering a private foundation. Your gift will be placed in a highly diversified investment pool.
The Community Foundation appreciates the generosity of our donors. We would love to share your story on our website and social media. We also provide the benefit of anonymity for donors who prefer that option. Being able to give to something permanent that represents your ongoing influence can mean a lot to them.
Charitable Solicitation Registration
See the South Haven Area Community Foundation’s registration with the State of Michigan Attorney General.