Donating a portion of your unused retirement assets, such as your IRA, 401(k), 403(b), pension, or other tax-deferred plan, is an excellent way to make a donation. When you name a charity as a beneficiary to receive your IRA or other retirement asset upon your death, rather than during your lifetime, you are amplifying your donation.
How to make a gift of retirement assets
To leave your retirement assets to CFAAC or a fund held at CFAAC, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate CFAAC or a fund held at CFAAC as the beneficiary, we/they will benefit from the full value of your gift because your retirement assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
Future gifts from your retirement assets
Up to 60% of your retirement assets may be taxed if you leave them to your heirs. An option is to leave your heirs assets that receive a step up in basis, such as real estate stock, and give the retirement assets to CFAAC or a fund held at CFAAC. As a charity, CFAAC and its funds are not taxed upon receiving an IRA or other retirement plan assets.