Help your clients make the world a little bit brighter.
Charitable Beneficiary Strategies
Simply informing clients of charitable beneficiary options can change lives.
Upon transfer to heirs, most retirement assets are taxed as regular income as well as being subject to any applicable estate taxes. If your clients have charitable intentions, leaving retirement accounts to causes they care deeply about is a smart way to make a substantial difference. Naming a charity as beneficiary can also provide a meaningful option when heirs are not present.
Leaving Donor Advised Funds and Life Insurance Policies to special causes can also make a significant difference in the community.
Donors with modest means, who could not make substantial gifts from lifetime income, have been able to leave incredible legacies with account beneficiary transfers.
Download and display this free flyer to remind clients about their beneficiary options.
FAQs
Can a charity be named as a back up beneficiary?
Absolutely. Take care of family first.
Is it as easy as filling out a form?
In most cases, yes. Attorney fees are not required for this type of estate transfer. Beneficiary designations generally take precedence over wills so do not need to be reiterated. However, note that ERISA retirement accounts (401k, SIMPLE IRA, etc.) require spousal approval if applicable.
Are some accounts better than others for charitable beneficiary transfer?
Most retirement accounts, with the exception of ROTH IRAs, have the biggest tax benefits compared to other assets. However, other accounts and policies can still make excellent gifts. Accounts with no after-death benefit, like most pension plans, are not suitable.
Can my client fund a special project or have naming benefits with a beneficiary gift?
If given to Manzanita Outreach, this is absolutely possible. If we are informed of the donor’s intentions, the donor is included in our Legacy Circle, which offers a number of honorary benefits during the donor’s lifetime. We are happy to discuss special projects and naming rights.
Can account beneficiary gifts be endowed?
Manzanita Outreach offers this option. Donors can simply inform us of their intentions or can specify Manzanita Outreach (tax ID 27-4446453) Endowment Fund as the beneficiary.
Why give to Manzanita Outreach?
Manzanita is the largest food and basic needs provider in the region, using innovative strategies to get resources where they are needed most. We provide county-wide leadership on food security policy and coordinated, inter-agency strategy. Our goal is to create the first food-secure county in America. If your client is interested in learning more, please see our annual report and schedule a tour with Ben.