For more information, please contact
the Smartdonor™ Concierge Team
(309) 669-6608 ⬤ info@mstcsmartdonor.com
Ways to Give
Gifts of Appreciated Stock
Qualified Charitable Distributions (QCD)
Bequests
Charitable Remainder Trust
Gifts of Appreciated Stock
If you have appreciated stock, you can gift some or all of the stock shares to avoid owing capital gains tax. You will also receive a charitable tax deduction for your gift.
To send a gift of stock, follow these simple steps:
- Identify which stock(s) you wish to gift, and how many shares.
- Provide your broker or account custodian with the organization’s DTC number and Account number.
- Check with the organization contact to ensure your gift was successfully received and to gather any relevant confirmations for tax filing.
Jim & Sharon’s Story
As is the case with many families, there are times each year when Jim and Sharon focus their attention on gift giving. For years, they have created a gift list that includes family members, friends, and loved ones. Last year, Jim and Sharon made an addition to their list and began including their favorite charity in their giving plan.
Qualified Charitable Distributions (QCD)
Anyone age 70 ½ or older can gift a QCD up to $105,000 each year from their IRA. A QCD can be made even if a Required Minimum Distribution (RMD) is not required. A QCD must be made from an IRA, not a qualified retirement plan like a 401(k), 403(b), or 457 Plan. If you have a 401(k) or similar plan, your financial advisor can help you roll it into an IRA to allow future gifting. Whereas a withdrawal from an IRA counts as taxable income to the individual, a QCD provides a tax-free gift to the charity of your choice and can also be used to satisfy annual RMD requirements.
- Determine the dollar amount you want to gift.
- List the charity name as directed.
- Provide the charity address as directed.
- If possible, make the gift to ATTN: Contact Name
- Gather the corresponding tax document from your broker or IRA account custodian.
Ray’s Story
Ray was an employee of a nonprofit for many years and each year attended their end of year gala fundraiser. He typically wrote a check to support this nonprofit each December. After Ray turned 73, he was required to take a Required Minimum Distribution (RMD) from his IRA each year.
Bequests
A gift may be bequeathed via a Will, Trust, or by Beneficiary Designation on an account. For example, you may list an organization as 5% beneficiary on your IRA or Life Insurance policy. Alternatively, you may list them in your Will to receive 10% of your estate, or to receive a gift of a specified dollar amount. Most organizations appreciate being notified by the donor when being listed to receive a future bequest.
- Bequest of a Specific Dollar Amount
“I hereby give, devise and bequeath [$Dollars] to [Charity Name], a non-profit organization located at [Charity Address] Federal Tax ID: [#], for [Charity Name]’ general use and purposes.” - Bequest of a Percentage of an Estate
“I hereby give, devise and bequeath [Percentage of Your Estate] to [Charity Name], a non-profit organization located at [Charity Address], Federal Tax ID: [#], for [Charity Name]’ general use and purposes.”
- The percentage of the account the charity will be entitled to receive upon your passing.
- List the organization name as directed.
- List the Tax ID as provided.
Nancy & Dave’s Story
Nancy and Dave were dedicated volunteers. Over the years, they had seen many individuals helped by the good work of their favorite charity. They wanted to create a legacy to provide future resources to continue its mission.
Charitable Remainder Trust
Charitable Remainder Trusts provide donors with a stream of income and a substantial tax deduction, while also leaving an impactful gift to a nonprofit. Donors commonly use Charitable Remainder Trusts when they are seeking ongoing income, but are facing a potentially large tax burden for the liquidation of existing assets in order to produce that income.
However, a Charitable Remainder Trust allows them to gift these assets into the Trust prior to liquidation, and then take both a tax deduction for their gift and ongoing income off of the invested Trust assets.
Contact your trusted financial advisor to discuss if a Charitable Remainder Trust is right for you.
Craig’s Story
Craig, a farmer, was ready to retire. He estimated his grain would be worth $400,000 upon sale this year. He also planned to liquidate his farming machinery and a portion of his farm ground the following year since his kids had moved out of state and did not intend to carry on the family farm.
