Flexible Ways to Support Southwest Minnesota
Our menu of giving options allows for flexible and creative ways to support this special place you call “home.”
Most of the wealth in our region is held in non-cash assets. There are a variety of assets that can be gifted to create a positive impact on Southwest Minnesota. Our role as a community foundation is to use our tools, staff expertise, and local connections to help you make a gift that benefits both you and your community. Non-cash gifts can include:
Qualified Charitable Distribution: If you are 70 1/2 or older, you can avoid extra income this year by making a gift from your Individual Retirement Account (IRA). To make a gift from your IRA, contact your IRA administrator and your IRA funds will be directly transferred to SWIF, a community foundation, or another local fund of your choice.
Read about how Cris and Linda Remucal made a difference with a gift from their IRA.
Retirement Plan Account: Your IRA, 401(k) or 403(b) retirement plans offer a simple and cost-conscious way to include us in your estate planning strategy via the beneficiary designation form. The gift happens at your passing, ensuring you have full access to the assets during your lifetime. Further, we do not pay income tax, which means the full amount of the retirement account will reach us and fulfill your goals. To plan a gift from your retirement account, request a beneficiary designation form from the plan administrator and include Southwest Initiative Foundation as the beneficiary of your account. Contact us if you want to designate your gift for a community or other fund so that we can document and fulfill your wishes.
Gift of Securities: Gift your old stock (with a low basis) that has appreciated in the rising market and avoid capital gains tax. Contact SWIF staff for instructions on how to make a gift of securities by electronic transfer or by certified mail.
Life Insurance Gift: Eliminate an old or unneeded life insurance policy by making a gift of the cash balance to support SWIF, your community foundation or a local fund. To make a gift of life insurance, please contact your life insurance provider, request a beneficiary designation form from the insurer and include Southwest Initiative Foundation as the beneficiary of your policy.
Charitable Bequest: Make a gift that costs you nothing today. Provide for your loved ones first and then support your community with a bequest made in your will or trust. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to SWIF or any SWIF fund. Contact us for sample language you can share with your attorney.
Gifts of Grain: You can direct a gift of grain to support any of our funds or use your gift to create a new fund that supports your goals and interests. For those who actively engage in farming on a cash basis, donating grain can offer significant tax savings over a cash gift. Another benefit is that gifts of grain can be donated from the current year or previous year’s harvest, while the tax savings are achieved the year the grain is given. Contact us early to let us know you’d like to make a gift of grain so that we make a connection with your preferred grain elevator to ensure your gift gets to the right place.
Real Estate and Personal Property: Real estate and personal property can be gifted to Southwest Initiative Foundation to benefit immediate needs or used to create a lasting legacy through an endowment fund that supports your goals and interests. There are specific steps to work through when gifting real estate and personal property; make sure to contact us early in your planning.
Keep It Growing(SM): Our farmland giving program (link to new Keep it Growing webpage) is a tool for retaining one of Southwest Minnesota’s greatest assets – farmland. Through our program, landowners can donate land as part of their succession plan. Most nonprofits sell the land as soon as possible, but we are known for a retention model that benefits all involved. Learn more. (link to new Keep it Growing page).
Non-cash gifts can be made to establish an endowment fund to support the future of the communities and causes you care about.
Endowment funds are invested for long-term growth and commingled with other endowments we manage. The original gifted amount – referred to as the “corpus” – is never touched; instead, investment earnings are used to accomplish your goals. Endowments are designed to last in perpetuity, with annual grants awarded in your name and memory.
Interested in learning more about making a non-cash gift or establishing an endowment fund? Contact our Development Team by calling (320) 587-4848 or email.
Read Pat McFarland’s endowment story to spark ideas for your estate plan.
You should always consult your professional tax and/or financial advisor to determine tax implications specific to your situation prior to making a non-cash gift.
