For Advisors

Mission Statement

The mission of the Community Foundation of Monroe County is to encourage and facilitate philanthropy in Monroe County.

What is the Community Foundation of Monroe County?

The Community Foundation of Monroe County is a nonprofit organization established to meet the current and future needs of our local community. We offer you all the tax advantages of charitable giving, the long-term benefits of endowment funding, and the ability to establish a legacy fund in the name of your family or a loved one.

     Giving through your community foundation qualifies you for the Michigan Community Foundation Tax Credit.
     •Married donors, filing jointly, can receive a 50% tax credit of up to $200 on a gift of $400 to a permanent endowment fund.
     •A single person can receive a $100 tax credit on a gift of $200.

Ways to Give

CHARITABLE REMAINDER UNITRUST

     The Unitrust is similar to the Remainder Annuity with the following differences:
    • The donor can make more than one transfer to the trust.
    • The payment amount each year must be a fixed percentage of the reappraised value of the trust (at least 5%).

UNITRUST AND INSURANCE TRUST

This is a combination of the aforementioned vehicles. Income from the Unitrust can be used to pay the premium for the insurance trust. Upon the donor’s death the principal goes to the charity and the insurance proceeds to the family with no estate tax.

HOME BUY-DOWN

Part of the home is placed in a charitable trust and the balance sold for cash. This allows the donor to sell a high-equity property without paying large taxes on the sale.

Benefit the Community

RETIREMENT PLANS

Retirement plan assets can be used to create a fund in the Community Foundation for whatever purposes the donor specifies.

LIFE ESTATE RESERVED

A donation of a home, farm or ranch effective upon the death of the donor means the donor continues to own and be responsible for the property until death but receives a charitable deduction now.

CHARITABLE LEAD TRUST

The Lead Trust is an agreement in which the charity receives the income and the family receives the principal, thus allowing the donor to pass on ownership of major appreciating assets with a minimum, if any, gift tax cost.

CHARITABLE REMAINDER ANNUITY

A one-time donation provides a non-charitable beneficiary (the donor, the donor’s spouse or a third party) with a stream of income (a specified fixed amount at least equal to 5% of the donation) to last for the life of the recipient or a period of years (not exceeding 20). At the termination of the period, the remainder of the property passes to the charity. The donor receives an income tax deduction from the present value of the remainder interest.

Plan for the Future

CASH GIFTS

The simplest method of giving is to send a personal check, which is a deductible contribution.

APPRECIATED SECURITIES

Donation of appreciated securities provides an income tax deduction equal to the market value of the securities. Removes future value from the donor’s estate.

REAL ESTATE

Real property given at appraised value allows the donor to receive a full charitable deduction and avoid capital gains taxes. Removes future value from the donor’s estate.

LIFE INSURANCE

The cash surrender value of a donated life insurance policy or the cost of a replacement policy is deductible as a charitable contribution. If you continue to pay premiums after your gift, these premiums are also deductible.

BEQUESTS

A bequest in the donor’s will of cash, securities, or real property to the Community Foundation reduces the taxes otherwise payable by donor’s estate.

Personal Income Tax Rates - 2008

Rate	Joint Income	Single Income
10.0% 15.0% 25.0% 28.0% 33.0% 35.0%	0-16,700 16,701-67,900 67,901-137,050 137,051-208,850 208,851-372,950 372,951+	0-8,350 8,351 - 33,950 33,951-82,250 82,251-171,550 171,551- 372, 950 372,951+

2009 Personal Exemption: $3,650
Standard Deduction: $$11,400/Joint; $$5,700/Single
Alternative Minimum Tax Rate: 26% to $175,000 28% over $175,000
AMT Exemption: $45,000 Married, $33,750 Single

Estate Tax Rates - 2009

Taxable Estate	Estate Tax	Marginal Rate on Excess
$100,000 $150,000 $250,000 $500,000 $750,000 $1,000,000 $1,250,000 $1,500,000 $3,500,000	$23,800 $38,800 $70,800 $155,800 $248,300 $345,800 $448,300 $555,800 $1,455,800	28% 32% 34% 37% 39% 41% 43% 45% 45%

For persons dying in 2009, if the taxable estate exceeds $3,500,000 the tax is $1,455,800 plus 45% of the amount over $3,500,000.
Annual Gift Tax Exclusion: $13,000
Gift Exemption: $1,000,000
Generation Skipping Transfer Tax Exemption: $3,500,000