Community as your beneficiary
Gift of an Individual Retirement Account (IRA)
and Tax-deferred Retirement Account
Individual Retirement Accounts (IRAs) and Tax-deferred Retirement Accounts are simple ways to make a lasting gift to your community. IRAs and other tax-deferred retirement plans such as 401(k)s may be subject to income, estate, inheritance, and other taxes. Many people may not realize that the combination of taxes on IRAs and retirement accounts can be over 70% for transfers to children and over 80% for transfers to grandchildren. Donors are often advised by tax professionals to utilize other assets to provide for loved ones and relatives, and to transfer IRAs and other tax-deferred retirement accounts to nonprofit organizations such as the Community Foundation of North Central Massachusetts.
How it works
- You make the Community Foundation of North Central Massachusetts the beneficiary of your IRA(s) and/or Tax-deferred Retirement Account(s).
- You determine the type of fund you would like to establish with your gift.
- Upon your death, we set up a special fund in your name, in the name of your family, or in honor of any person or organization you choose.
- Your charitable gift is excluded from your assets for estate tax purposes.
- Our professional program staff considers your charitable wishes and determines the areas of community need that would be most impacted by grants from your gift.
- Our board issues grants in the name of the fund you establish (if you prefer, grants can be made anonymously).
- We handle all the administrative details.
- Your gift can be placed into an endowment that is invested over time. Earnings from your fund are used to make grants addressing community needs. Your gift — and all future earnings from your gift — is a permanent source of community capital, helping to do good work forever.
