Supporting the future through an IRA beneficiary designation

For many years, Michael and Linda have supported [ABC Charity] through annual gifts. As they approached retirement, they began reviewing their long-term financial plans and thinking about the legacy they wanted to leave.

During a conversation with the development team at [ABC Charity], Michael mentioned that a significant portion of his savings was held in a traditional IRA. He wondered whether there might be a simple way to support the organization through those assets.

The team explained that some donors choose to name a nonprofit organization as a beneficiary of a retirement account, such as an IRA. Doing so typically requires only completing a beneficiary designation form provided by the financial institution.

After discussing the idea with his financial advisor and estate planning attorney, Michael decided to name [ABC Charity] as a partial beneficiary of his IRA. This allowed him to provide meaningful support for the mission while still leaving other assets, such as stock, to family members.

Michael appreciated how straightforward the process was.

“It felt like a natural extension of the support we’ve been giving for years,” he said. “Knowing that our IRA can help continue the work of [ABC Charity] makes us feel great about the future.”

What’s more, Michael and Linda’s tax advisors can share information about the tax benefits of leaving their IRA to [ABC Charity] to bypass the income tax that their heirs would have to pay if the heirs were named as beneficiarires.

“It sure feels like a win-win,” said Linda.

Please reach out to the team at [ABC Charity] to learn more about leaving a legacy through your IRA.

Important Note: Donors should always consult their legal, tax, and financial advisors before making decisions about beneficiary designations or other planned gifts.