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Gifts Of Retirement Assets

For many, our most valuable assets are those held in retirement accounts. Over the past several decades, you’ve likely been putting money away for retirement. You may discover that you’ve saved more than you need, giving you more to share.

Retirement assets can make excellent charitable gifts for both the donor and nonprofits.

At the Saint Paul & Minnesota Foundation, we’ve been helping Minnesotans turn surplus retirement assets into charitable gifts for decades.

Here’s How a Donor Advised Fund Works

  1. Talk with a Foundation Gift Planner about your charitable goals.
  2. Our experienced staff will work with you and your advisors to determine if a gift of retirement assets is right for you.
  3. Establish a donor advised fund (DAF) with the Foundation that can easily accept gifts of retirement assets.

Three Ways To Make A Gift Of Retirement Assets

Beneficiary Designation*:
  • Name your DAF at the Foundation as the beneficiary of all or a portion of your retirement account.
  • Maintain ownership and control of your assets during life as well as the ability to change your beneficiary at any time.
  • You may qualify for a charitable estate tax deduction.
  • After your death, your gift flows from your retirement account to your DAF.
Qualified Charitable Distribution:
  • Give up to $100,000 per year to charity directly from your IRA.
  • You must be at least 70 ½ years of age.
  • The gift may count toward your required minimum distribution (RMD).
  • A qualified charitable distribution avoids income tax, but does not provide a charitable income tax deduction.
  • Some funds at the Foundation are eligible to receive a qualified charitable distribution.
Testamentary Charitable Remainder Trust:
  • Name a charitable remainder trust (CRT) as the beneficiary of all or a portion of your retirement account.
  • After your death, your gift flows from your retirement account to the CRT and creates an income stream for those you choose.
  • When the trust comes to its scheduled end, the remainder flows to your DAF to support your favorite charitable causes.
  • Maintain ownership and control of your assets during life as well as the ability to change your beneficiary at any time.
  • You may qualify for a charitable estate tax deduction.

*Beneficiary Designation Language:

Saint Paul & Minnesota Foundation, a Minnesota nonprofit corporation, to be allocated to the [INSERT NAME OF FUND]. a
101 Fifth Street East, Suite 2400
Saint Paul MN, 55101-1800
Tax ID #: 41-6031510

How Alfred Used Retirement Assets to Establish His Donor Advised Fund

Alfred, a donor who gave retirement assets

Alfred devoted his life to his family, career and volunteer work, and recently retired. His wife Sophia passed away a few years ago and they never had children.

Like many people, he was diligent about contributing as much as he could to his retirement plan every year. His financial planners project that he will likely have more retirement assets than he needs for his lifestyle. He is now contemplating how he might use his retirement assets to support his favorite causes.

After speaking with his advisors, Alfred learned that he could use his retirement assets to establish his own donor advised fund and support his favorite causes for a long time to come. Alfred contacted a Gift Planner at the Saint Paul & Minnesota Foundation to discuss his charitable goals. He created a donor advised fund in the name of his deceased wife, and named the fund as the beneficiary of most of his retirement assets. Upon his passing, the assets will flow to the fund and will make annual grants to his favorite nonprofits for many years to come.

Ready to Get Started?

Start a conversation with a Gift Planner today. Call 651.224.5463 or email the team at philanthropy@spmcf.org.

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