Where your Treasure Is: Planning for the Future

I have the privilege of being in the 13th CAP (Chartered Advisor in Philanthropy) class organized by the Omaha Community Foundation. CAP is a 3-part course helping students learn ways to help their charitably-minded clients and donors achieve their highest aspirations.

There’s the saying you don’t know what you don’t know, and now I know what I didn’t know. You come into ministry and the work of fundraising, and the focus is on gifts right now, cash gifts, enough to get us through the year. As we mature as an organization while building a foundation of support from so many generous donors, the conversations go deeper into aspirations, worries, and planning for the future – both for the nonprofit AND the donor.

None of us gets out of here alive, but we can all leave a legacy. That isn’t reserved for the wealthiest among us either. We provide for our favorite nonprofits in life, why would we stop at death?

Retirement assets like IRAs are a great way to do both.

• If you are over 70 ½ years old, you can contribute up to $100,000 of the required minimum distribution (RMD) from your IRA directly to a charity (Qualified Charitable Distribution) and not pay any tax on that RMD. You don’t get a charitable deduction, but it is more advantageous to not have that amount in your taxable income.

• When you name a charity as a death beneficiary of your retirement savings, it will have a triple benefit. First, neither your estate nor your heirs will pay the hefty taxes on those assets. Second, your estate will receive a charitable tax deduction for that contribution. Third, the charity as a tax-exempt nonprofit will get the entire amount to use for its mission.

The vast majority of us have a house, some savings, retirement accounts, maybe life insurance. Others have property, appreciated stocks, a family business, or other assets. There are so many tools at our disposal for giving in a meaningful and tax efficient way, and continuing to impact our favorites charities even after death. And, for most of us, the best and most tax savvy way to give doesn’t require an expensive attorney or crafty estate plan.

Stay tuned for more information about ways you can support JPII Newman that aren’t just from your checkbook.

It’s always best to confer with a trusted attorney, financial planner, or accountant when making these important decisions. At the center of it though is what you treasure. For where your treasure is, there also will your heart be. (Matthrew 6:21)