Gift Planning - Common Gifts

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Wills and Living Trusts

Legacy Planning: Empowering Connections
You wish to leave a contribution to Faith in Action within your will or living trust, while also retaining the ability to adjust your plans should circumstances alter. This dual objective can be achieved seamlessly.

In just a single sentence, you can solidify your donation. This form of bequest to Faith in Action through your will or living trust ensures the sustained advancement of our mission for generations to come.

Illustrative Scenario
Robert & Emily, parents to three young children, recognized the importance of establishing an estate plan. Through this process, they contemplated their loved ones and cherished organizations, envisioning the legacy they desired to create. They discovered the simplicity and adaptability of including a brief provision to allocate a portion of their estate or a specified sum to Faith in Action.

Beneficiary Designations

Streamlined Giving through Beneficiary Designations
For those who prefer flexibility over committing gifts in their wills or estates, beneficiary designations offer an attractive option. This method allows individuals to designate Faith in Action as a beneficiary through various channels:

  • IRAs and retirement plans
  • Life insurance policies
  • Donor-advised funds
  • Commercial annuities

Naming Faith in Action as a beneficiary is a straightforward process. Simply initiate the procedure by obtaining a change-of-beneficiary form from your policy administrator or by downloading it from your provider’s website. Once you’ve made the desired adjustments, submit the form to formalize your gift.

Illustrative Scenario
George & Carol hold dear the financial support they’ve provided their children and their local charities over time. Recently, they updated their will to allocate stocks and real estate to their offspring. Additionally, they decided to designate $75,000 from their IRA to Faith in Action Caregivers upon their passing. As Faith in Action enjoys tax-exempt status, the entire $75,000 will contribute to advancing our mission.

Had George & Carol chosen to pass the IRA to their children, approximately $18,000* would have been allocated towards federal income taxes, leaving only $57,000 for their family’s benefit. With their revised estate plan, George & Carol are content, knowing they’re maximizing the impact of their hard-earned assets.

*This calculation is based on the assumption of a 24% marginal income tax bracket.

 

Give From Your IRA

Strategic Giving from Your IRA
A Tax-Efficient Path to Support Faith in Action
Contribute to a meaningful cause while minimizing your tax burden. This opportunity arises when you choose to support Faith in Action through your IRA.

A Special Opportunity for Individuals Aged 70½ and Above
If you are 70½ years old or older, you have the option to donate any amount, up to a maximum of $105,000 per year, directly from your IRA to a qualified charity like Faith in Action without incurring income taxes on the funds. Any donation valued at $105,000 or less is eligible for this advantageous treatment, allowing you to contribute to Faith in Action while enjoying tax benefits. This popular charitable contribution method is commonly known as the IRA charitable rollover or qualified charitable distribution (QCD).

Reasons to Consider This Giving Strategy:

  • Immediate Impact: Your donation begins making a difference immediately, enabling you to witness the positive effects of your contribution.
  • RMD Satisfaction: Starting from the year you turn 73, you can utilize your donation to fulfill all or part of your required minimum distribution (RMD) obligations.
  • Tax Efficiency: The transferred funds are not subject to income taxes, providing you with tax benefits irrespective of whether you itemize deductions.
  • Income Reduction: As the donation is not considered income, it can potentially lower your annual income, leading to reduced Medicare premiums and decreased taxation on Social Security benefits.

For Individuals Aged 59½ and Above
If you’ve reached the age of 59½ or older, you have the option to withdraw funds from your IRA and subsequently donate them without incurring any penalties. Additionally, if you choose to itemize your deductions, you can claim a charitable deduction for the amount of your contribution.

Irrespective of Age
Regardless of your current age, you have the ability to designate Faith in Action as the beneficiary of part or all of your IRA assets, which will pass to us tax-free following your lifetime. The process is straightforward: simply contact your IRA administrator to request a change-of-beneficiary form or download one from your provider’s website.

Tip: It’s crucial to inform us about your intended gift, as many popular retirement plan administrators may not have an obligation to notify a charity of your designation. Moreover, they typically do not oversee whether your gift instructions are carried out. We welcome the opportunity to discuss your intentions to ensure they are fulfilled and express our gratitude for your generosity.