Cash donations can be given in honor, in memory of, or directly to the foundation’s community account. Donations can also be designated for one of the many sub-funds of the foundation’s investment portfolio. Over time, received contributions will continue to grow, allowing more available funding for projects within our city.
Many who contribute to the community foundation do it by offering appreciated assets like stock, bonds, etc. The donor has a full tax deduction and does not have to pay taxes on the appreciated portion of the asset. This is an effective and popular way to make sure your charity receives the greatest amount of funds without being compromised by taxes on gains.
Charitable Remainder Trust
This is an instrument whereby you can set aside a sum of money to use for a charity, the community foundation for example. You can receive a set amount of money each year until your death and at that time the amount remaining in your account is given to the charity.
Donor Advised Funds
This instrument allows you to give one or more donations to this fund, which is available through the Watertown Area Community Foundation, and then later you can designate the charitable recipients. But, you can immediately deduct the donation.
How can you contribute?
This is an exciting time to be living and growing in Watertown and the future is bright indeed. How can you help to make the many community projects envisioned for our community a reality?
It’s really simple! In addition to volunteering and helping with projects you truly believe in, keeping the Watertown Area Community Foundation in mind for charitable giving is a key way to help.
Make a DONATION
The federal and state governments want community foundations to succeed and provides many ways you can help our community and at the same time get favorable tax treatment at both state and federal levels.
The Watertown Area Community Foundation is a 501(c)(3) charity which provides full tax deductions under tax laws.
GRANTING OPPORTUNITIES. IMPACTING
In all of these options, as well as others, it’s best to consult with your attorney and/or accountant for options you are considering. You will be surprised at the difference you can make in a community through well thought out and detailed giving plans.
The funds held by the community foundation now exceed $10 million and they are invested with professional help. The income and gains are allocated to the individual accounts.
The community foundation operates with low administrative costs. There is no compensation for the volunteer board members and officers. Administrative expenses are well below the norm for community foundations.
The Watertown Area Community Foundation is willing to assist in any way with establishing funds and ways for you to help make Watertown a better and more dynamic community. We can help make you aware of ways to reach your charitable goals and at the same time minimize the taxes you might incur using standard methods of giving. We can also offer you options for professional assistance when that makes sense.
People with resources, people who care about their community, and people who are willing to assist can make a huge difference in the quality of life we enjoy here in Watertown, and can make projects happen that until now have only been a dream! Please join us in allowing Watertown to reach its fullest potential.
If you are 70 ½ or older and are taking the mandatory required minimum distributions, part or all of that money you withdraw can be given to a charity (the community foundation for example) directly and you have no tax liability as would normally be the case. And, you can still take the standard deduction. With the standard deduction raised substantially in 2019, this is a popular and effective way to give to your favorite charity and get the tax advantages.
This is one of the most effective tools available to charity minded people. Consult with your attorney, accountant, or financial advisor to determine the best way for you to use your money for charitable purposes.