Generally speaking, planned gifts represent gift options that can be designed to meet your personal philanthropic and financial goals. Some planned gifts, such as a gift in your will, require no current outlay of funds at all. And other planned gifts, including the charitable gift annuity, make it possible to support our work, enjoy a tax deduction if you itemize, and receive a lifetime income at the same time.

In this unpredictable and challenging economic climate, a planned gift can be a rewarding way to make a difference in others’ lives. Please contact us if we can provide more information or help you in any way.

P.S. We invite attorneys, CPAs, financial planners, and other professional advisors to click the “Professional Advisors” link to use our Planned Giving Answers Online program. It provides more detailed information about planned giving concepts and techniques.

Making a Difference

New Legislation Provides a New Giving Option

Americans received a last-minute holiday gift in the form of new legislation, passed and signed in the final days of 2023. The Consolidated Appropriations Act of 2023 includes the SECURE 2.0 legislation, which contains numerous anticipated retirement provisions (including bumping the age for required minimum distributions up from 72 to 73). It also includes important changes to qualified charitable distributions (QCDs).

A new QCD option to consider

A QCD, also known as an IRA charitable rollover, is an easy, tax-efficient way to make a gift directly from an IRA to a qualified charity. Any IRA owner age 70½ or older can give up to $100,000 a year (aggregate limit) and pay no tax on the transfer. The gift does not qualify for an income tax deduction, but it does count toward the IRA owner’s required minimum distribution (RMD) if one is due.

Starting in 2023, IRA owners age 70½ now have another option to consider. The new law allows a one-time QCD of up to $50,000 to create a charitable gift annuity (CGA) or a charitable remainder trust (CRT). This is a gift option worth considering for those who wish to use retirement assets for a donation and are also interested in establishing a new income stream.

A great time to look at charitable gift annuities

In addition to the new option to fund a CGA with money from an IRA, suggested maximum charitable gift annuity rates increased again on January 1. This lets donors lock in higher lifetime payments for themselves and/or another person (two annuitants maximum).

Sample one-life gift annuity rates effective January 1, 2023

AGE 70 75 80 85 90
RATE 5.9% 6.6% 7.6% 8.7% 9.7%

Please reach out if you are interested in exploring these or other charitable giving options. We would be happy to help you determine a gift strategy that fits within your personal financial plan and helps you shape your philanthropic legacy. Your support for our mission makes an important and lasting difference in the lives of those we serve, and we are grateful for your thoughtful consideration.