More Ways to Give
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IRA Charitable Rollover
If you are at age 70½ or older and are the owner of a Traditional IRA (or inherited Traditional IRA), and do not need all or part of your required minimum distribution, you can make tax-free IRA contributions directly to qualified public charities, such as A Breath of Hope Lung Foundation.
Each age-eligible IRA owner can transfer up to $100,000 tax-free per tax year.
Your IRA gift must be complete on or before December 31 of the calendar year in which you choose to utilize the IRA Charitable Rollover gift vehicle for tax purposes. Generally, if sent by US mail, the postmark determines the date of a charitable gift.
The check must be made payable directly to A Breath of Hope Lung Foundation.
You can only make outright gifts. The IRA Charitable Rollover cannot be used to fund life income gifts (such as charitable gift annuities or charitable remainder trusts).
Advantages of an IRA Rollover
You can count your gift towards your annual required minimum distribution.
Your distribution is not recognized as income on your federal income tax return, and therefore not eligible for a federal income tax charitable deduction.
Under current federal tax laws, keeping your IRA distribution out of your adjusted gross income may save you taxes.
The transfer process is quick and requires minimal paperwork. Your investment company can provide you with a form that is used to transfer the IRA funds directly to A Breath of Hope.
Donor-advised funds (DAFs) are an increasingly popular vehicle for charitable giving. There are now more than 500,000 individual DAFs across the United States, with assets upward of $100 billion. All DAFs are managed by “sponsors”—tax-exempt public charities that can administer any number of individual DAF accounts. Sponsors include community foundations, the charitable arms of investment managers such as Fidelity and Charles Schwab, religious organizations, and universities.
Donors (sometimes termed DAF “advisors” or “holders”) receive a tax deduction when they contribute money or appreciated assets to a DAF. Donors can then request that the DAF sponsor distribute funds to the operating charities of their choosing. Although donors can only “advise,” rather than require, a sponsor to make a gift, their advice is almost always heeded.
Will or Bequest
Will or Bequest is one of the most meaningful ways to make a gift to the A Breath of Hope Lung Foundation. Gifts of any size made through a bequest help ensure that the foundation receives valuable ongoing support. Donors can make a bequest by simply including a provision for A Breath of Hope Lung Foundation in their wills or trusts. And they can choose to give A Breath of Hope Lung Foundation a specific dollar amount or a percentage of their estates.
Bequests for A Breath of Hope Lung Foundation:
- Allow donors to make a generous gift while maintaining control of assets during their lifetimes.
- Can be designated for a specific program or can be unrestricted.
- Can be changed by the donor at any time.
- Will not be subject to estate tax.
To include a bequest for A Breath of Hope Lung Foundation in a will or trust, donors may wish to use the following sample language:
“I give [the sum, percentage] to the A Breath of Hope Lung Foundation, Wayzata, Minnesota, to be used [for the benefit of the foundation or _____ program] or [according to my written instructions* on file with the foundation].”
The foundation’s development staff can work with donors and their attorneys to customize this bequest language to ensure that it accurately reflects their wishes and that the A Breath of Hope Lung Foundation will be able to use their gifts as intended. For more information, contact our executive director, Nancy Torrison at 952-807-6111.
Testamentary charitable remainder trust
Some donors may consider establishing a testamentary charitable remainder trust with a retirement account or other assets. The trust would begin at the donor’s death and can provide income for family members or others for life or a term of years. The assets remaining in the trust then pass to the charities the donor has designated.