Tax Benefits

The New Canaan Community Foundation is classified by the Internal Revenue Service (IRS) as a not-for-profit 501(c)3 public charity. As such, all contributions to the Foundation are deductible to the greatest extent allowed by law.

There are several tax benefits to establishing a fund with a Community Foundation. We encourage you to seek the advice of your professional advisor as to how a fund will impact your philanthropic giving.

Tax benefits:

• Cash contributions are fully deductible up to 50% of adjusted gross income
  (vs . 30% with private foundations)
• The deduction for cash contributions that exceed 50% of your adjusted gross
  income may be spread over a five year period to get the full deduction
• No excise tax imposed (vs. 2% of net investment income for private foundations)
• Gifts of appreciated securities and/or property are deductible up to 30% of adjusted gross
  inc ome and may also be spread over a five year period to get the full deduction
• No capital gains taxes are paid on gifts of appreciated securities and/or property
  donated to the Foundation