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ASSETS DONORS CAN GIVE Gifts to the Foundation can take many forms. In all cases, the donor can direct the assets to an area of interest or to a charitable organization. CASH — As cash gift is the simplest and most convenient way of making a charitable gift. Cash gifts are fully deductible as a charitable contribution for federal income tax purposes but the maximum deduction in one year is limited to 50 percent of the donor's adjusted gross income. Unused deduction amounts exceeding this limit can be carried forward for up to five additional years. APPRECIATED SECURITIES — Gifts of appreciated securities — stocks and bonds, including stock in closely held companies — provide important tax advantages to the donor. The full fair-market value of the appreciated securities is fully deductible as a charitable contribution for federal income tax purposes but the maximum deduction in one year is limited to 30 percent of the donor's adjusted gross income. Unused deduction amounts exceeding this limit can be carried forward for up to five more years. In addition, the donor does not pay federal capital gains tax on the appreciated portion of the gift. RETIREMENT PLAN ASSETS — Using IRAs and other retirement plan assets is a far-sighted and thoughtful way to make a charitable contribution. It provides a donor a number of significant financial and tax advantages. Unlike many assets, retirement plan assets are potentially subject to both income and estate taxes. laming the Foundation as the beneficiary of a retirement plan —including IRAs, 401(k)s and profit- sharing plans—can eliminate estate and income taxes, if the gift is structured properly. REAL ESTATE — A gift of real estate can provide the same tax advantages as a gift of appreciated securities. Each proposed gift of real estate is carefully examined, because the Foundation's ability to accept • gifts of real estate depends upon a number of factors. LIFE INSURANCE — A gift of life insurance is another way to make a substantial contribution to the Foundation. By assigning ownership to the Foundation,the donor can receive a tax deduction for the value of the policy and the premiums paid each year. ADDITIONAL INFORMATION If you wish to learn more about how a charitable partnership with The Saint Paul Foundation or Minnesota Community Foundation can help you meet your philanthropic goals,please call the Development Department at 651-224-5463 or toll-free at 800-875-6167. We will assist you in exploring the many options available to accomplish your charitable objectives. In addition,we urge donors to consult their own professional advisors before making any charitable gifts.