It is easy to include United Way of the National Capital Area in your will, estate and planned giving. Here are some of the most popular ways to do so.
The IRA charitable rollover is a great way for you to make a gift to support United Way NCA. These gifts will help sustain our important work in the community.
The IRA rollover allows donors 70.5 years or older to transfer up to $100,000 directly from their IRA to United Way NCA on an annual basis. An IRA rollover gift is a tax-exempt distribution. Qualifying individuals can make charitable gifts using pre-tax IRA assets rather than taking a distribution, paying income taxes and using after tax assets to make a charitable gift. An IRA rollover gift can be used to meet all or part of an IRA’s annual required minimum distribution.
Frances, a donor, has an IRA from which she must now make minimum required distributions. After discussion with a United Way NCA gift officer, she decides to gift directly to United Way NCA, directing $15,000 of her annual minimum distribution to the organization, thereby avoiding any additional income taxes, as well as knowing that her gift will help strengthen her community. She pledges to continue making IRA rollover gifts in future years.
This is an excellent technique for individuals in the highest tax bracket, those who have sold a business or those who have received a significant bonus and could benefit from an immediate tax deduction.
Mary and Bob are both highly paid professionals and received large bonuses this year. Unfortunately, a significant portion of this year’s bonus will go to taxes. Mary and Bob also have a stock portfolio of highly appreciated stock. They decide to contribute stock they purchased many years ago for $50,000 that is now worth $200,000. Because this stock is being transferred to United Way NCA, they will not have to pay capital gains tax. United Way NCA will benefit and Mary and Bob will receive a significant income tax deduction.
Are you looking for a way to provide yourself or a loved one with a fixed payment for life while leaving a lasting legacy in your community? If so, a charitable gift annuity might be the right option for you. A charitable gift annuity is a contract between you and United Way NCA in which you transfer cash or appreciated assets in exchange for a guaranteed, fixed payment for life. Best of all, you receive a charitable deduction for the value of the future gift to the United Way NCA and the satisfaction of helping to guarantee that United Way NCA will continue its unselfish dedication in providing needed services to our communities. Charitable gift annuities can be set up with one or two income beneficiaries. The minimum age is 60 years old and the minimum amount to establish an annuity is $25,000. Payments can be made on a quarterly, semiannual or annual basis.
Sarah is a loyal contributor. She’s retired and a volunteer with United Way NCA. After reading about the charitable gift annuity and understanding the benefits, Sarah decides to establish a charitable gift annuity for $50,000. Based on her age of 70 years old, she will receive a yearly annuity of $2,550 for the rest of her life. She will also receive a nice charitable deduction of $20,496. Sarah feels a sense of pride knowing that when she passes, her gift will assist United Way NCA in fighting for the health, education, and economic opportunity of every person in our community.