What Your Client Can Give

The IRS has authorized several ways in which your client can make a gift to The San Diego Foundation. The following is a list of assets The Foundation can accept.

Cash
Securities
Real Estate
Insurance Policy
Retirement Plan
Limited Partnership
Undivided Interest

Cash
Donor contributes with currency or by check.

Securities

• Publicly traded stock
  
  
• Restricted/closely held stock
  Stock in some companies is not publicly listed. It is called "privately held" or "closely held." This is typical of many family businesses. Its value is ascertained by a special appraisal. Companies in the start-up mode will often issue pre-IPO (Initial Public Offering) stock. Initially it will likely have no value. However, if the company is a success, its future value may be quite significant.
  
  
• Mutual funds

Real Estate
Donor makes a gift of real estate to The Foundation. The transaction is done through the Charitable Real Estate Foundation, a supporting organization of The Foundation.

Undivided Interest
Value can be assigned to a gift of a percentage of ownership in real estate, but the ownership must extend to the entire amount of the percentage. If The Foundation were given 20% ownership of a property, it would mean that when that property sold, two parties, The Foundation and the 80% owner, were selling it.

Insurance Policy
Donor makes The Foundation the owner and beneficiary of a policy. If premiums are due, the donor may make contributions to The Foundation for the premium amount and receive a tax deduction.

Retirement Plan

• Donor can transfer his/her retirement plan assets to The Foundation. This eliminates all taxation and gives The Foundation full value of the assets.
• Donor can make The Foundation the contingent beneficiary to the assets remaining in his/her plan and receive an estate tax deduction for the value of the assets.
  

Limited Partnership
In this arrangement a general partner assumes the administration and liability of running a business arrangement, while the limited partner(s) shares in any profits.


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