Become a Donor

There are a variety of ways to give to the Cottonwood Area Community Foundation. Here are some of the more common:

Cash - Perhaps the easiest way to give, cash gifts are eligible for a tax deduction in the year the gift is made. 

Farmland - Farmland can be gifted to the Cottonwood Area Community Foundation or sold and converted to cash for an immediate charitable impact.

Grain/Commodities -   In lieu of gifting cash, reduce your taxable income by gifting grain to the Foundation. Farmers who have grain to sell (which typically generates income) have the option to gift grain to a charitable organization. Gifts of grain allow the farmers to exclude the grain income from being taxed while still being able to deduct the expenses. Additionally, depending on a farmer’s tax structure, grain gifting will not only save a farmer income taxes but also self-employment taxes.   To make a gift of grain, contact the cooperative or grain elevator and the Foundation ahead of time. Farmers deliver the grain to the cooperative or grain elevator, provides a warehouse receipt to the Foundation, and title passes to the Foundation. The Foundation will then sell the grain and deposit the money into its endowment fund.

Appreciated Stock - Donors may use stocks to make a charitable gift to the Cottonwood Area Community Foundation. Donors are eligible for a tax deduction for the fair market value of the stock and can avoid capital gains tax by making the gift and allowing the Cottonwood Area Community Foundation to sell it. It is our policy to sell the stock as soon as possible once the transfer has been made. 

Retirement plans – Donors may designate assets in qualified plans such as IRA’s, (individual retirement accounts) 403(b), and 401(k) plans to the Cottonwood Area Community Foundation. You may gift all or part of a qualified retirement plan. This strategy is often considered the most tax-wise giving vehicle available, due to the deferred taxation inherent in these accounts. A change of beneficiary form is required for this gifting option. You should visit with your plan administrator, and on the form, indicate the Cottonwood Area Community Foundation as a beneficiary of your plan. 

Life Insurance – Life insurance benefits may be given to the Cottonwood Area Community Foundation. You can indicate whether part or all of a policy is to be donated to the Cottonwood Area Community Foundation by using a change of beneficiary form. Often these are available online, or you can ask for the form from your insurance provider. There are tax benefits to you if you make the gift during your lifetime, and should the gift come when the policy matures, your estate is reduced by the amount of the payout to charity as designated on the beneficiary form.

Bequests - A charitable bequest is the most common form of leaving a planned gift. A charitable bequest is accomplished by indicating a specific amount or a specified percentage in your will or trust to a charity. A tax deduction for a charitable bequest is provided from the donors adjusted gross estate.

Charitable Remainder Trusts - Charitable Remainder Trusts (CRT’s) provide a way for donors to transfer assets to a trust, receive an immediate tax deduction, an income stream for life and potentially avoid a capital gain on the sale of appreciated property. The amount of the deduction is calculated and varies based on the age of the donor, the size and type of the gift, and the amount of income one selects. CRT’s may be used to provide an income. When the trust term expires, the balance of the trust would remain with the Cottonwood Area Community Foundation and becomes part of a pre-established charitable fund with the Cottonwood Area Community Foundation. Tax benefits referred to in this information are generally described and donors are advised to consult with their tax advisor before making any charitable gift. 

Endowment gifts - You may make a charitable gift to the Cottonwood Area Community Foundation and have the joy and benefit of serving the community in perpetuity with a permanent endowment gift. Your gift is invested and only the earnings from your fund are used annually to address community needs.