Remainder Gift

At the Community Foundation of Northeast Iowa, we are able to offer a variety of giving methods designed for each donor's unique situation. All of these methods give our donors opportunities for a variety of tax benefits. We encourage you to visit our Tax Benefits page to learn more!

Bequest by Will

A Legacy of Giving.

Including a charitable bequest in your will is a simple way to make a lasting gift to your community. When you make this gift through the Community Foundation of Northeast Iowa, we establish a special fund that benefits the community forever, and becomes your personal legacy of giving. In doing so, you leave a legacy to your community are able to distribute some or all of your assets, tax free. You can give cash, appreciated stocks, or other assets.

Some of the most tax-efficient asset types to give through your will come from retirement plan accounts, since heirs would be taxed on the income in respect of the descendent (IRD). You can choose to give a stated dollar amount, a specific property, a percentage of your estate, the remainder after distributions to other beneficiaries, or you can make your gift contingent on certain events.

Retirement Plan Beneficiaries

Working to provide for the future.

Retirement Plans provide an opportunity for you to help plan for your community's future. They are one of the best types of assets to transfer to a charity, because retirement plans produce taxable income. By naming the Community Foundation of Northeast Iowa as the beneficiary of your retirement plan, you could receive a number of benefits.

Most assets that an heir inherits are free from income tax. However, an heir will pay income tax on disbursements from a decedent's retirement plan such as a profit sharing plan, Section 401(k) plan or IRA. If you are going to make a charitable bequest, it is usually better to transfer these taxable assets subject to income tax to a tax-exempt charity, such as the Community Foundation of Northeast Iowa, and to transfer the non-taxable assets not subject to income tax to heirs.

Life Insurance Beneficiaries

Community as your beneficiary.

Perhaps you would like to contribute the proceeds of a life insurance policy to help the community, but you are not ready to give up ownership of the policy. By naming the Community Foundation of Northeast Iowa only as beneficiary, you retain ownership of the policy and have access to the cash value as well as the right to change the beneficiary. This type of contribution allows you to give to your favorite charity after you die, even if you don't have the liquid assets right now. While you retain ownership of the policy, there is no charitable deduction for the value of the policy when you designate the Community Foundation of Northeast Iowa as the beneficiary or for subsequent insurance premiums. However, any proceeds payable to the Community Foundation at your death will not be subject to federal estate taxes.