One of the simplest ways to make a charitable gift is to designate InFaith Community Foundation as beneficiary of an IRA, tax sheltered annuity, or 401(k) or 403(b) plan. Beneficiary proceeds directed to charity are not subject to income or estate taxes, typically referred to as “double tax”, providing significant tax advantages to the giver and their family. These assets may also be used to fund a charitable remainder trust at death to benefit a spouse or the family.
When a donor names InFaith beneficiary of specific assets, he/she enjoys some flexibility and simplicity in giving, including the ability to:
- Change this designation throughout life;
- Designate all or a portion of the assets to InFaith;
- Designate InFaith beneficiary without the help of an attorney; and
- Upon the donor's death, assets are directed to their charitable fund created to benefit his/her recommended charities.
To learn more about beneficiary proceeds, watch this explainer video.
How to Designate InFaith to Receive Beneficiary Proceeds
- Donor completes a Fund Workbook and send it to InFaith.
- Once InFaith receives the Fund Workbook, we draft a Fund Agreement. This document will be sent to the donor for signature and countersigned by InFaith. The purpose of this document is to list the charities the donor wishes to benefit and govern the administration of the donor’s perpetual fund. The donor may change the charitable beneficiaries at any time by revising the Fund Agreement.
- The donor includes the foundation on Beneficiary Designation forms
- The following language should be used: “InFaith Community Foundation, a Minnesota nonprofit corporation.”
- InFaith Community Foundation's Tax ID Number: 41-1802412.
- InFaith Community Foundation's mailing address:
600 Portland Avenue South, Suite 5100
Minneapolis, MN 55415
- Clients who need the retirement income while living, but wish to benefit charity with any remaining value upon death.
- Clients who want the option to change this designation down the road.
- Charitably-minded clients who have no heir(s) to benefit from their estates.
Tax and Financial Benefits for Your Clients
- The amount designated to charity is given free of federal estate tax.
- InFaith receives the specified assets upon the donor’s death, allowing for a potential charitable deduction against estate taxes.
- Save up to 70% of the value of the asset from federal estate and income taxes.
Benefits to you, the Financial Professional
InFaith Community Foundation will support you with a full range of charitable products and services, and you'll be compensated for your efforts by Thrivent or American Funds. (details)