Methods of Donating to the National Auctioneers Foundation
(Tax Free Donations)

The NAF offers a wide range of gift giving options. Options include giving now through current outright gifts, or giving later through life income plans, wills and bequests. The Foundation is recognized by the Internal Revenue Service as a public charity. Consequently, donors are provided with the maximum tax benefits allowed by law.

Outright Gifts: Cash, Securities, Real Estate, Life Insurance

Gifts of Cash
Cash gifts are fully deductible up to 50 percent of the donor's adjusted gross income in any one year. Deduction amounts exceeding this limit may be carried forward for up to five additional years. Cash gifts can be made with a check, or a national credit card, including VISA, MasterCard, Discover and American Express. This is how our supporters most often contribute.

Securities
Gifts of appreciated securities (bonds, mutual fund shares and stock, including stock in closely held companies) may be used to make contributions to the NAF or add to an existing fund. Such gifts often provide important tax advantages. Their full fair market value is deductible as a charitable contribution up to 30 percent of your adjusted gross income. As with gifts of cash, deduction amounts exceeding this limit may be carried forward for up to five additional years.

The added benefit of giving appreciated securities is the avoidance of the capital gains tax on the appreciated portion of the gift. Gifts of closely held stock enjoy the same tax benefits as publicly traded stock.

Real Estate
A gift of real estate held more than one year can provide the same federal tax advantages as those described for gifts of securities. However, because the Community Foundation's ability to accept gifts of real estate depends on a number of factors, such gifts are considered on case-by-case basis.

Life insurance
Life insurance policies also can be used as charitable gifts. If the NAF is named as the owner and beneficiary of an existing or new life insurance policy, you receive an immediate tax deduction, which usually approximates the cash surrender value of the policy. All premium payments made by you thereafter will be deductible as a charitable contribution.

Life Income Plans

Wills and Trusts (naming NAF in your will or trust).
This method of giving offers several choices:

• Specific Bequest: Identifies the property or value of the amount given
• Residuary Bequest: Identifies a percentage of the estate or trust designated for the NAF after all other bequests and obligations are met
• Contingent Bequest: Identifies property to be given to the NAF provided other conditions are met

Retirement and Pension Plans
Naming the NAF as beneficiary can exempt these gifts from income and estate taxes

Charitable Remainder Trusts (established for a term of years or for life).

Lead Trusts
The NAF receives an annual distribution from the charitable lead trust, and you may reclaim the principal or, ultimately, pass it to another person at the end of the term.

Charitable Gift Annuity (a contract returning income to the donor and/or spouse for life).
The principal used to establish the annuity becomes part of the NAF Trust at the time of the donor or spouse's death. This approach generates an immediate income tax deduction and avoids capital gains tax on gifts of appreciated long-term securities.

Deferred Payment/Charitable Gift Annuity
This giving option allows you to defer receipt of income from the annuity, resulting in either a greater immediate income tax deduction and/or a higher future income stream.