Gifts from your IRA are a tax-wise way to help The Ark. There are two ways to make a gift with your IRA: 1) a Qualified Charitable Distribution (QCD) (or also known as an IRA Rollover and/or 2) naming The Ark as a beneficiary.
Qualified Charitable Distribution (also known as an IRA Rollover)
If you’re age 70 1/2 or older, a charitable IRA rollover is a gift option that enables you to transfer any amount up to $100,000 directly from your IRA (or IRAs) to The Ark each year. You won’t need to recognize the transfer as taxable income on your tax return. By the same token, this transfer may not be claimed as a charitable income tax deduction.
Benefits
When you make a gift through a Qualified Charitable Distribution or charitable IRA rollover:
- Your gift will be put to work at The Ark today, allowing you to enjoy the difference your gift is making.
- You can count the amount of your rollover toward your required minimum distribution (RMD) for the year.
- You can avoid additional taxable income, which may allow you to avoid taxation at a higher tax bracket.
- This can usually be accomplished with a simple form. Contact the manager of your IRA plan for information about how to make this gift.
Name The Ark as a Beneficiary of your IRA or other retirement assets
IRAs are the most heavily taxed asset in your estate which means those assets are usually the best source of charitable distributions at death. Naming The Ark a beneficiary of your IRA or other retirement assets is typically straightforward: fill out a designated beneficiary form through your employer or your plan administrator. Most banks and financial services firms also have beneficiary forms, or they can provide you with suggested language for naming beneficiaries to these accounts. Once the designated beneficiary forms are in place, the retirement assets will generally pass directly to your beneficiaries (including charities) without going through probate.
Our legal name: The Ark
Our federal tax ID: 38-1802396
Our address: 316 S. Main Street
Ann Arbor, MI 48104
Why Consider this Gift?
- Distributions from IRAs to charities upon your death avoid income tax and estate tax. The combined federal income/estate tax can be as high as 80 percent when the assets finally pass to your heirs.
- Charitable gifts from IRAs at the owner’s death avoid probate. After your death, distributions of your assets to The Ark will qualify for an estate tax charitable deduction.
- You can name a charity like The Ark as the beneficiary of your IRA or other retirement assets, regardless of the size. You can also change the beneficiary designations rather easily, versus revising a trust or will, which requires help from an attorney.
Beneficiary Designations on Other Assets
You can also name The Ark as a beneficiary on other assets such as:
- Donor Advised Funds
- Investment Accounts
- Brokerage Accounts
- Checking Accounts
- Savings Accounts
- Treasury Bonds and/or Savings Bonds
You can designate a specific dollar amount or a percentage to benefit The Ark. The beneficiary designation can be updated at any time and your gift is transferred to The Ark without being probated.