Any Alameda Food Bank supporter who would like to remember the Alameda Food Bank in their estate becomes an automatic member of our Legacy Circle. All that is required is a letter signed by you naming the Alameda Food Bank as a beneficiary in your estate. We don’t want to know the amount, or any of the particulars, just a confirmation letter to let us know you have included the Alameda Food Bank in your estate planning. The information will be kept completely confidential.
In return, you have an open invitation to be our guest at all of our events including the annual volunteer recognition celebration. It’s a great way to hear about our programs and to stay in touch with an organization that has had meaning to you during your lifetime. Ways in which non-profits can be remembered include:
Bequests — Wills or Revocable Living Trusts
Remembering the Food Bank in your will or revocable trust is often the most meaningful way to leave a legacy. Following is suggested language for a bequest:
“I hereby give to the Alameda Food Bank, located at 1900 Thau Way, Alameda, CA 94501 [cash amount, percentage of net estate, or description of property] to be used for its non-restricted purposes.”
Stocks and Other Securities
Another easy way to donate is by designating a non-profit as a beneficiary of stocks, bonds, mutual funds and other securities that you have held for more than one year.
Life Insurance Policies
Non-profits may be designated as the beneficiaries of existing life insurance policies. Premium payments can also be deducted as charitable contributions if the non-profit is named as both the owner and beneficiary of the policy.
A percentage of a checking or savings account balance can be directed to a non-profit by filing a beneficiary statement at your local bank.
Everyone’s situation is different and we suggest that you contact your financial advisor, accountant, or attorney to learn more about the different forms of charitable giving, the tax advantages, and to evaluate the options that are best for you.
Retirement Plan Assets
Tax-free donations can be made from qualified retirement plans such as an IRA, Keogh, tax-sheltered annuity, or a qualified pension or profit sharing plan.
Did you know that the IRA Charitable Transfer benefits donors aged 70½ and up?
The IRA Charitable Transfer is an excellent way to make gifts and receive tax benefits in return. As you plan your required minimum distributions for this year, consider using your IRA account to make the most of your charitable giving. You receive a tax benefit even if you take the standard deduction! It’s important to consider your tax situation before deciding whether to make a charitable contribution from your IRA. Be sure to share this gift plan with your financial advisor.
- You must be age 70½ or older at the time of gift.
- Transfers must be made directly from a traditional IRA account by your IRA administrator to Alameda Food Bank.
- Gifts must be outright. Distributions to donor-advised funds or life-income arrangements such as charitable remainder trusts and charitable gift annuities do not qualify.
- Gifts from 401k, 403b, SEP and other plans do not qualify. Ask your financial advisor if it would be right for you to create a traditional IRA account so you can benefit from the IRA Charitable Transfer.
- Donate up to $100,000 annually.
- IRA Charitable Transfers are excluded gross income for federal income tax purposes on your IRS Form 1040. You receive no charitable deduction
- Count towards your required minimum distribution for the year in which you made the gift.
Questions and Answers:
What’s the IRS Rule?
The IRA Charitable Transfer allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) charities, without having to count the transfers as income for federal income tax purposes. No charitable deduction may be taken, but distributions will qualify for all or part of the IRA owners required minimum distributions.
Individuals who are age 70½ or older at the time of the contribution (you have to wait until 6 months after your 70th birthday to make the transfer).
How much can I transfer?
$100,000 per year. The transfer must be outright to charity.
From what accounts can I make transfers?
Transfers must come from your IRAs directly to Alameda Food Bank. If you have retirement assets in a 401k, 403b etc., you must first roll those funds into an IRA, and then you can direct the IRA administrator to transfer the funds from the IRA directly to Alameda Food Bank.
To what charities can I make gifts?
Tax exempt organizations that are classified as 501(c) (3) charities, including Alameda Food Bank, to which deductible contributions can be made.
Can I use the IRA Charitable Transfer to fund life-income gifts (charitable gift annuities, charitable remainder trusts, or pooled income funds), donor advised funds or supporting organizations?
No, these are not eligible.
How will Alameda Food Bank count the gift?
We will give you full credit for the entire gift amount.
What are the tax implications to me?
- Federal — You do not recognize the transfer to Alameda Food Bank as income, provided it goes directly from the IRA administrator to us; therefore, you are not entitled to an income tax charitable deduction for your gift.
- State — Each state has different laws, so you will need to consult with your own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction and others will not. Other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax at all.
Does this transfer qualify as my required minimum distribution?
Once you reach age 70½, you are required to take required minimum distributions from your retirement plans each year, according to a federal formula. IRA Charitable Transfers count towards your minimum required distribution for the year in which you make the gift.
Can my spouse also make an IRA Charitable Transfer?
Yes, every individual who is the owner of a traditional IRA account can use the IRA Charitable Transfer for up to $100,000 each year.
Important: Be sure to check with your financial advisor to determine whether this gift plan is right for you. This information is not meant as tax or legal advice.