lthough establishing and maintaining a Heartland Charitable gift fund can be a simple process, there are some details of which an individual should be aware. An initial donation of $10,000 is required to establish a fund and additional contributions of $2500 may be made at any time. Contributions may be made in the form of cash, transferable securities (including mutual fund shares), or transfers from an existing foundation. In most cases, a Heartland Charitable Trust gift fund can be established within 24 hours, although gifting securities may trigger a lengthier start-up time. Once established, accounts need to maintain a $1000 balance. Gifts from the fund may be distributed at any time while still qualifying for tax benefits in the year in which they were first contributed.

Several options exist for making contributions into an account. Because of the tax benefits, gifting appreciated securities (including stocks, bonds, or mutual fund shares) is often a logical choice. By transferring appreciated shares directly into a gift fund, capital gains taxes are virtually eliminated, guaranteeing more dollars are available for your gifting. Cash gifts and transfers from an existing foundation are also acceptable. No matter what contribution method is utilized, all contributions to the trust are irrevocable.

Before gifting, it would be wise to take the tax consequences into account. Currently, donors are eligible for an itemized deduction of up to 50% of their Adjusted Gross Income (AGI) in the tax year in which a cash contribution is made. Deductions for contributions of appreciated securities held for more than one year are limited to 30% of AGI. Contributions beyond these limits may be carried forward and deducted in the five-year period after the year of contribution.

Determining the value of a deduction can be a tricky process. We encourage you to contact us for help with this process. Our experience can help you reap the full tax benefits of your gift.

It is worth noting that contributions to a fund are not restricted to the individual who established it. Other persons may make contributions into a fund; they will receive the tax benefits for their charitable gift. Individuals may also make contributions into a fund established by a group, organization, company, or corporation. Again, the tax benefit will go to the person making the contribution.

Ready to start gifting? Call the Heartland Charitable Trust at 589.2133 or 1.866.397.2133. or click here to complete a donor gift application. We'll help you consider which type of gift makes the most sense for your circumstances and take the necessary steps to help you establish your account. Once your account is open and funded, you are free to begin distributing gifts as you wish. The minimum gift is $100 and only 501 (c)(3) organizations are eligible recipients. Gifts can typically be completed in a 24-hour period; however, the number of requests made at year-end occasionally slows this process. Dealing with security sales can also impact the length of time necessary to complete a gift.