Make helping people during the most difficult time of life your legacy.
A little planning now can help you achieve your charitable giving goals. There are a few ways to support People's Memorial Association that are tax-efficient and easy to do, which is why we're seeing an increase in people choosing to give in this way. These types of gifts ensure the future of People's Memorial Association for years to come. Here are a few options:
Qualified Charitable Distributions (QCDs)
QCDs, also known as IRA Charitable Rollover Gifts, are tax-free gifts transferred directly from your IRA account to the nonprofit of your choice. Federal law allows people age 70½ or older to make direct transfers to charitable organizations from their Individual Retirement Account (IRA), without the withdrawal being treated as taxable income. A transfer up to $100,000 can be counted toward your Required Minimum Distribution. Many people are choosing to give this way! It's easy to do and keeps your taxable income low, which may reduce the impact to certain tax credits and deductions, as well as reducing the cost of Medicare. Consult with your tax advisor to see how this strategy can benefit you. Then reach out to your IRA custodian to request a “Qualified Charitable Distribution” be made directly to People's Memorial Education Fund.
Including PMA in your Will is a great way to give without it affecting your current financial situation since it’s a future gift. A bequests is tax efficient because it potentially saves a lot of tax at your passing. Careful crafting of the Will may save you Federal and State estate tax after your death, while leaving it available to you while you are alive in case you need the money. More people than ever are making their wills and are ensuring their favorite causes will be supported. You can include your favorite charity in your will or living trust as the recipient of a gift or bequest. Here are some of the ways you can make a bequest to a charitable organization:
- Charitable bequests and transfer-on-death gifts - people usually choose this method because they consider their estates to be modest in size and they are simple to set up.
- A percentage of your total estate - with this approach, your gift adjusts with the changes in the size of your estate.
- The residue or a percentage of the residue of your estate. After making gifts to your loved ones, you may designate the residue to a charitable organization. With this approach, your gift adjusts with the changes in the size of your estate.
- A gift of a specific amount.
Here is sample language you can share with your attorney: "I give ___% of my estate (or $___) to People's Memorial Education Fund, a Washington State nonprofit corporation. People's Memorial Education Fund's office is located at 2011 1st Ave N, Seattle, WA 98109."
Donor Advised Fund (DAF)
A donor advised fund is like a charitable investment account, for the sole purpose of supporting charitable organizations you care about. This philanthropic giving vehicle provides an immediate tax benefit to you and allows you to grant funds to your favorite charities. To give in this way, you can contact your financial institution or your fund manager to recommend supporting a grant to People's Memorial Association. By giving this way, you're able to enjoy seeing the impact of your gift as it supports families journeying through the end of life.
We're seeing a big increase in people giving stock (or even mutual funds). Did you know that by donating stock that has appreciated for more than a year, you are actually giving at least 20 percent more than if you sold the stock and then made a cash donation? The reason is simple: avoiding capital gains taxes. You can potentially avoid 20% long-term capital gains tax, 3.8% net investment income tax, and 7% Washington State Capital Gains Tax, as well as avoid the indirect increase in Medicare Tax Premiums. It is a very tax-efficient method of meeting your giving goals while minimizing your tax.
Giving stock gifts may also allow you to diversify your highly appreciated or employer stock that may be highly weighted in your stock portfolio. Check with your tax advisor for specific details to maximize this great tax strategy. Thinking you'd like to give this type of gift to PMA? Reach out to our executive director any time at firstname.lastname@example.org!
People's Memorial Association is a registered 501(c)3 nonprofit organization under the name "PMA Education Fund". All gifts are fully tax-deductible as allowed by law EIN: 68-0621888.
Please let us know about your plans! By informing People's Memorial Association of your legacy gift, you give us the chance to thank you for your generosity and determine what is most important to you for the future of the organization. Please call us at 206.325.0489 or email us at email@example.com.
Information on this website is not intended to be tax or legal advice applying to your specific situation. Advice from a qualified financial advisor should be sought when considering a gift.