Consider making The Nature Conservancy a full or partial beneficiary of your IRA, 401(k) or other qualified retirement plan. You may be surprised to find that the taxes applied to your retirement plan assets are different than you imagined—in fact, using retirement assets to make your donation and leaving other assets to your heirs often enables you to give more to your heirs.
Your financial advisor and the Conservancy’s gift planning professionals can help you determine whether income from a gift plan or withdrawals from your retirement account would most benefit your heirs. For more information contact one our gift planning experts at (877) 812-3698, at email@example.com or via this online form.
How it Works
- You name The Nature Conservancy as the beneficiary of a qualifying retirement plan through a beneficiary designation form, ensuring assets will not be included in your taxable estate. An extra step may be required to designate a 401(k).
- After your lifetime, the residue of your plan passes to The Nature Conservancy tax-free and to any other named heirs.
- Escape both income AND estate tax levied on the residue left in your retirement account. Since the Conservancy is a non-profit organization, we won't pay income tax on the distribution, nor will the gift be subject to estate tax. The entire amount comes to us, and your heirs will benefit from a reduced estate tax burden.
- Continue to take withdrawals during your lifetime.
- Change the beneficiary if your circumstances change.
Retirement Plan Gift Example: Assume you have $300,000 in an IRA and appreciated stock worth $250,000. You can see from this chart that your heirs actually benefit more from the lower valued gift of stock.
|IRA to Charity||Stock to Heirs||IRA to Heirs|
|Value of IRA||$300,000||$250,000||$300,000|
|Less income tax (33%)||$0||$99,000|
|Remainder to charity/heirs||$300,000||$250,000||$201,000|
The income your heirs receive from your IRA is called “Income in Respect of Decedent,“ which is taxable upon transfer at the donor's highest tax rate. However, the gift of stock is taxable only when the heirs sell the shares, and only on the gain that occurred from the date of transfer—typically at the 15% tax rate. You may be able to give more to your heirs with less.
- Find out why our New York State Director named the Conservancy in his retirement plans.
- Discover other gift options with the Conservancy.
- You can leave a legacy for nature. Learn about our Legacy Club.
You can protect rivers and other natural places by making a planned gift with The Nature Conservancy. Contact us today.