Gifts from Retirement Plans
Your retirement fund is likely one of your largest assets. If the fund is larger than you and your family will probably need, you may consider using a portion of it for charitable purposes.
Retirement Plan Withdrawals
If you are between 59 ½ and 70 ½ you can withdraw money from your retirement funds – IRAs, 401(k)s, 403(b)s, or other comparable plans – and contribute it to a charity. The money you withdraw will be added to your taxable income, but you will receive a charitable deduction for the same amount.
In eligible tax years, individuals age 70½ or over can exclude up to $100,000 from gross income for donations paid directly to a qualified charity from their IRA. This is known as a Qualified Charitable Donation, and it satisfies any IRA-required minimum distributions for the year.
If you are 70 ½ or older and have an IRA, and wish to direct a charitable donation to HeartLands Conservancy from your individual retirement account (IRA) please use the following procedure:
- Notify your broker that you are making a charitable gift to HeartLands Conservancy.
- Instruct your broker to transfer the charitable donation into HeartLands Conservancy’s account at Raymond James, Inc:
FBO ACCT# 511TJ139
FBO Heartlands Conservancy
After you have completed the transfer, please contact Mallory Ketcherside at HeartLands Conservancy and let us know the arrangements that you have made. This is important because your broker may not include your name in the transfer and we may not know who the gift is from. Notifying us enables us to track the transfer and acknowledge your gift promptly.
Mallory Ketcherside, Director of Donor Relations: firstname.lastname@example.org or call (618) 566-4451 ext 10.
HeartLands Conservancy’s tax id is 37-1273869
Direct Transfers (Non-IRA) Over Age 70 1/2
If you are 70 ½ or older but have a plan other than an IRA, you cannot use the direct “rollover” feature. However, if you have another type of plan, you could transfer from that plan to an IRA and then do the direct rollover to a charity from the IRA.
However, you can still follow the withdrawal procedure outlined above for those younger than 701/2.
Named As Beneficiary
HeartLands Conservancy can be named as a beneficiary of retirement funds – and there may be tax benefits to your other beneficiaries for doing so.
When loved ones are named as beneficiaries on retirement funds (other than Roth IRAs), the distributions are taxed as ordinary income. However, when those beneficiaries receive bequests of appreciated property – such as securities or real estate – they are not taxed on the gain that accrued before your death.
When a person makes an end-of-life gift to both loved ones and a charity, it may be more tax-efficient to name the charity as the beneficiary of all or a portion of the remaining retirement plan funds. The charity, being tax-exempt, will pay no income tax, and your loved ones will pay no income tax on the securities or real estate.
To change your beneficiaries in your retirement plan, contact your plan administrator and request a change-of-beneficiary form. Sometimes this is available on your plan administrator’s website.