Helpful Resources

Helpful Resources

We can help enhance your services with your clients.

The Winona Community Foundation wants to partner with you to help your clients meet financial and charitable goals by serving as a resource for professional advisors. We offer resources and opportunities to learn about philanthropy.  We hope you will find the following resources helpful as you work with your clients to determine if the Foundation can be a good fit for their charitable and tax planning needs.

Types of funds

The Winona Community Foundation is here to help you provide charitable solutions that bring the greatest benefit to your clients and the causes they care about. Explore the different types of customizable funds to determine the appropriate solution to support your clients’ charitable passions.

This type of fund givers donors the flexibility and benefit to make gifts to their funds and direct grants to the nonprofits of their choice. The fund’s assets are co-mingled and invested with those of the Foundation. Fundholders receive an immediate tax dedication when establishing or adding to a fund, benefit from investment growth, and support the causes they love. These types of funds can be endowed or spendable. Many fundholders may choose to start their fund through a gift in their will or estate.

These funds are those which the Foundation’s board of directors are responsible for making grant distributions to benefit the greater community. The Foundation takes all responsibility for making the distributions in a timely manner. These funds can be endowed or spendable.

These funds are broad in purpose and allow donors to target their giving to reflect a passion for a particular cause or area of interest. The Foundation’s board of directors is responsible for making grants to nonprofits that align with the field of interest.

This type of fund may have a specific purpose, criteria, or time period attached to them and often have multiple contributors.

Many people want to pay tribute to a loved one or assist young people in pursuing a career goal similar to their own. Establishing a scholarship fund at the Foundation is one way to accomplish this.

The Foundation will serve as a fiscal sponsor to charitable causes that benefit from the Foundation’s charitable status. Some fiscal sponsorships are in place to assist a new nonprofit before it secures its own IRS letter of determination.

This type of fund serves a variety of nonprofit organizations seeking to benefit from its investment expertise. This allows them to focus on delivering on their mission.

What is an endowment?

When your client establishes a fund, we will be ask to determine if they would want to allow granting from the principle or if they want to endow the fund. If they choose to an endow fund, the original gift along with any additional gifts are invested in perpetuity. That means they will grant from earnings based upon the Winona Community Foundation’s current spending policy (5% of the average market value of invested assets on December 31 – the average market value is calculated using the preceding 11 calendar quarters). This spending policy may be reviewed and adjusted from time to time and is designed to ensure your clients philanthropy lasts forever.

Different types of gift planning

A planned gift is a commitment made during your clients’ lifetime, often with no financial commitment. These gifts support organizations like ours when they no longer need their assets.

Your client’s IRA can be taxed up to 70% if passed onto heirs, but there is no tax when it’s used to make a charitable gift!

How it works:

  • Your client names the Winona Community Foundation as the beneficiary of their IRA, 401(k), or other qualified retirement plan.
  • Your client leaves assets to their heirs, their IRA to the Foundation, and nothing to the IRS.

Benefits:

  • Your client can continue to take regular lifetime withdrawals.
  • Your client can maintain flexibility to change beneficiaries if their family’s needs change during their lifetime.
  • Your client’s heirs can avoid double taxation and may receive an estate tax deduction.

IMPORTANT: Please tell the Foundation about this gift. If we are not aware, we may not know how to honor your client for their gift.

A gift that costs nothing during their lifetime!

How it works:

  • Your client includes a gift to the Winona Community Foundation in their will or trust.
  • Make their bequest unrestricted or direct it to a specific purpose.
  • Your client may designate a specific amount or percentage of their estate to make a gift.

Benefits:

  • Your client’s assets remain in their control during their lifetime.
  • Your client can modify your gift to address changing circumstances.
  • Your client can direct their gift to a particular purpose.
  • Under current tax law, there is no upper limit on the estate tax deduction for their charitable bequests.
  • Your client’s heirs may receive an estate tax deduction depending on the value of their estate.

Giving stock can be more beneficial than giving cash!

How it works:

  • Your client transfers appreciated stocks, bonds, or mutual fund shares they have owned for more than one year to the Winona Community Foundation.
  • The Foundation sells your securities and uses the proceeds to fund a program at the Foundation that you choose.

Benefits:

  • Your client recieves an immediate tax deduction for the fair market value of the securities on the date of the transfer.
  • Your client pays no capitol gains tax on the transfer when the stock is sold.
  • Giving appreciated stock can be more beneficial than giving cash. The “cost” of their gift is often less than the deduction they gain by making it.

Your client donates a policy, recieves a tax deduction on future premiums, payments, and makes an extraordinary gift.

How it works:

  • Your client transfers ownership of paid-up life insurance policy to the Winona Community Foundation.
  • The Foundation elects to cash in the policy now or hold it.

Benefits:

  • Your client can make a gift using an asset that they and their family no longer need.
  • Your client recieves an income tax deduction equal to the cash surrender value of the policy.
  • Your client may be able to use the cash value of their policy to fund a gift that delivers income, such as a charitable gift annuity.

When the time comes to transfer or sell a business, there are tax and practical reasons for including the Foundation in those plans.

How it works:

  • Your client gives shares of closely-held stock to the Foundation.
  • The Foundation may hold the shares and collect the dividends, or it may offer the stock back to their company for redemption or re-purchase. The Foundation will apply the dividends or the proceeds to the purposes your client wishes to support.

Benefits:

  • Your client recieves gift credit and an immediate income tax deduction for the current market value of their shares.
  • Your client pays no capitol gains tax on appreciation of the shares.
  • Under certain conditions, your client may be able to use closely-held shares to fund a charitable gift annuity or trust that returns retirement income.
  • Your client can make a significant gift during their lifetime without using their cash reserves to do so.

Your client makes an extraordinary gift, transfers the burden and expense of managing the property, and removes a large asset from their taxable estate.

How it works:

  • Your client deeds their home, vacation home, undeveloped property, or a commercial property to the Winona Community Foundation.
  • The Foundation may use the property for its own purposes or may sell it and use the proceeds to fund a gift to the area that you are passionate about helping.

Benefits:

  • Your client recieves an income tax deduction for the fair market value of the real estate at the time of the transfer.
  • Your client pays no capitol gains tax on the transfer.
  • Your client can direct the proceeds from their gift to a specific program or purpose at the Winona Community Foundation.

A gift that provides a “retirement income” for life!

How it works:

  • Your client transfers cash, property, or appreciated assets to the Winona Community Foundation.
  • The remaining balance passes to the Foundation when the contract ends.
  • Your client may choose a lifetime contract or a set number of years.

Benefits:

  • Your client recieves dependable income for life, regardless of fluctuations in the market.
  • In may cases, your client may receive payments at a rate higher than the interest they are currently receiving on investments.
  • Your client recieves an immediate income tax deduction for the portion of their gift.
  • A portion on their annuity payment will be tax-free.

Is your client a younger donor? Consider a deferred gift annuity.

A great way to make a gift, receive fixed payments, and defer or eliminate capitol gains tax. It provides a steady tax flow and can be more beneficial than keeping an asset or selling it outright.

How it works:

  • Your client transfers cash, securities, or other appreciated property into a trust. The required minimum for this type of gift is $100,000.
  • The trust makes fixed annual payments to your client or to beneficiaries they name.
  • When the trust ends, the remainder passes to the Winona Community Foundation to be used as your client has directed.

Benefits:

  • Your client receives income for life or a term of years in return for their gift.
  • Your client receives an immediate income tax deduction for a percentage of their contribution.
  • Pay no up-front capitol gains tax on appreciated assets they donate.
  • Use the trust to meet needs that are tied to a specific time frame, such as college tuition payments.

A great way to make a gift, receive payments that may increase over time, and defer, reduce, or eliminate capital gains tax.

How it works:

  • Your client transfers cash, securities, or other appreciated property into a trust. The required minimum for this type of gift is $100,000.
  • The trust pays a percentage of the value of its principal, which is value annually, to your client or beneficiaries they name.
  • When the trust ends, the remainder passes to the Foundation to be used as they have directed.

Benefits:

  • Your client receives income for life or for a term of years in return for their gift.
  • Your client receives an immediate income tax deduction for a portion of their contribution.
  • Pay no up-front capital gains tax on appreciated assets they give.
  • Your client can made additional gifts to the trust as their circumstances allow for additional income and tax benefits.

A gift that provides a “guaranteed paycheck” for life!

How it works:

  • Your client transfers cash or securities to the Winona Community Foundation.
  • Beginning on a specific date in the future, the Foundation begins to pay your client, or up to two annuitants your clients name, fixed annuity payments for life.
  • The remaining balance passes to the Foundation when the contract ends to fund a gift to the program or purpose at the Foundation that your client is passionate about helping.

Benefits:

  • Deferral of payments allows your client to wait until they need or want to take payments to fund their retirement and generates a larger charitable deduction.
  • Your client’s age at the time they elect to begin receiving payments can lead to locking in a higher annuity rate.
  • Payments are guaranteed and fixed, regardless of fluctuations in the market.
  • The longer your client elects to defer payments, the higher their payment will be.

A gift that provides a “guaranteed paycheck” for life!

How it works:

  • Your client transfers cash or securities to the Winona Community Foundation.
  • Your client selects a range of dates in the future (window) when they will want the Foundation to begin paying them, or up to two annuitants they name, fixed annuity payments for life.
  • During the payment window, your client requests the start of payments.
  • The remaining balance passes to the Foundation when the contract ends to fund a gift to a program or purpose that your client is passionate about supporting.

Benefits:

  • Deferral of payments permits a higher annuity rate and generates a larger charitable deduction. The deduction is calculated based upon the first date in their window on which they can elect to start payments.
  • Your client can target their annuity payments to begin when they need them, such as retirement.
  • The longer your client elects to defer payments, the higher the payment will be.

A gift that allows you to transfer wealth with significant tax advantages.

How it works:

  • Your client contributes securities or other appreciating assets to a Charitable Lead Trust. Our suggested minimum gift is $1,000,000.
  • The trust makes annual payments to the Winona Community Foundation for a period of time to fund a program or purpose your client is passionate about supporting.
  • When the trust terminates, the remaining assets and any appreciated value is paid to your client’s heirs.

Benefits:

  • Income payments to us for a term reduce the ultimate tax cost of transferring an asset to your client’s heirs.
  • The amount and term of the payments to the Foundation can be set so as to reduce or even eliminate transfer taxes due when the assets revert to their heirs.
  • Your client may designate whether gains in the value of the trust increase payments to the Foundation or may be added to the assets in the trust.

Your client can deed their home, farm, or vacation house, receive an immediate tax deduction, and still use the property for the rest of their life.

How it works:

  • Your client transfers the title to their residence, farm, or vacation to the Winona Community Foundation and they can continue to live there for the rest of their life.
  • Your client remains responsible for taxes and upkeep while they live at the property.
  • The property passes to the Foundation when their life estate ends.

Benefits:

  • Your client can give us a significant asset but retain the security of using their property for the rest of their life.
  • Your client receives an immediate income tax deduction for a portion of the appraised value of their property.
  • Your client can terminate their life estate at any time and may receive an additional income tax deduction OR your client and the Foundation may jointly decide to sell the property and prorate the sale proceeds.

For more detailed information, please contact us so that we can assist you through every step of the process.

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QUESTIONS?

For more information or to learn more about partnering with the Foundation, please contact:

Nancy M. Brown
President/CEO
Email Now
(507) 454 – 6511