The Depository

People throughout Central Illinois have found the Community Foundation of Central Illinois Depository to be a uniquely useful vehicle for charitable giving. The Depository permits "timing" of charitable giving, while expanding the opportunities for avoidance of capital gains.

The Depository in Brief

In many ways, the Depository works like a charitable checking account. Depositors make deposits, usually in the form of appreciated marketable securities. The Depository immediately converts all non-cash deposits into cash, and the net funds are held in the Depository's "bank" until the depositor directs the Depository as to when and how the distributions are made to IRS-recognized charities. The depositor will decide whether the specific distribution is to be made anonymously or in a manner indicating that the depositor has directed the distribution, and the Depository will follow the depositor's wishes in that regard.

Tax Advantages

By depositing appreciated stock, the depositor can earn a tax deduction at the full market value of the securities given to the Depository without ever having to pay capital gains on the appreciation in the value of securities. Instead of selling that security, if you use it to fund your charitable giving by depositing it at the Depository, you would never have to pay the federal or state capital gains taxes. You have, therefore, increased your charitable giving over what would have been available if you had sold the stock yourself and distributed the after tax proceeds directly to your charities.

Control

Utilization of the Depository not only saves you the capital gains tax, but it allows you to time your deduction so that you gain the maximum write-off immediately while retaining control of when specific donations are made out of your Depository "bank account". That is because you can "park" the funds in the Depository for years if you like. Distributions to the charities you selected do not have to be made in the same year as your tax deduction is earned.

Record Keeping

You will no longer have to worry about retaining letters of confirmation from charities to which you direct distributions by the Depository. All you need is the one letter from the Depository confirming your deposits. You and your taxpreparer will love it. Each quarter you will receive a "bank statement" from the Depository that tells you the deposits you made during the quarter, your gifts for the quarter from your Depository account, the current balance in the account, and a list of donations you have made year-to-date.

Opening An Account

Opening a Depository account is easier than opening a bank account. It can be done in a matter of minutes. In person or over the phone. You will pay no fees for the Depository service. All you need to do is follow these simple steps:

• Complete the Depository donor information form.
• Gift your stock or mutual fund to the Depository. Do not sell the asset.
• Use the stockbroker of your choice, or deliver the certificate directly to the Community Foundation office.
• Sign your certificates only when directed by your stockbroker or a Community Foundation representative. (Do not send signed certificates in the mail. If necessary, send a signed stock power in a separate envelope.)