IRAs only/Qualified Charitable Distributions (“QCDs”)

• What is this?
  Individuals age 70.5 and older can move up to $105,000 per year from their Individual Retirement Accounts (IRAs) directly to their favorite charity or charities without it affecting their taxable income.

• Who should consider this option? People who are charitably inclined, don’t want or need the income, and don’t want or need their Required Minimum Distribution (required for those age 73 and older)

• Financial Benefits
  This is a potential income tax (and an estate tax) reduction strategy while being charitable.

• What do interested parties need to prepare for a meeting?
  First, individuals should contact their IRA plan administrator to start the distribution process. When they’re ready to send the QCD, they can have the check made payable to the ROSALIE MURREY MEMORIAL FOUNDATION and mailed to 104303 N. Navaho Dr. Spokane, WA 99208. Next, please notify the Foundation’s Development office at 740-221-1890 or by email of the intended gift along with the following information: Name, gift amount, anticipated date of check arrival, and name of IRA custodian.

401K/403B/457

• What is this?
  Workplace retirement plans (401K is for-profit, 403B is non-profit, and 457 is government) where a nonprofit can be named as a beneficiary paid upon the death of the individual.

• Who should take advantage of this option?
  For those who are charitably inclined but want to keep their bequest intentions revocable for now.

• Financial Benefits
  This gift would NOT be included as part of one’s estate and therefore would not be taxed as income, either.

• What do interested parties need to prepare for a meeting?
  An individual should bring any beneficiary change forms from the relevant retirement plan custodians. The Haven can offer suggested language for this person to complete and file.

Outright Gift

• What is this?
  Real estate property (e.g., residential real estate, commercial real estate, and/or raw land) is donated in its entirety. The property is then promptly sold, and the net proceeds are applied per the donor’s wishes.

• Who should take advantage of this option?
  This option is best for individuals or couples looking for the highest income tax deduction possible by making a real estate donation now. Of course, it is also removed from one’s estate for estate tax planning purposes.

• Financial Benefits
  There is a potential charitable income tax deduction on the full dollar amount of the qualified independent appraisal/fair market value. And, it is removed from the individual’s estate.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid for by the potential donor) is a really good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

Bargain Sale

• What is this?
  An individual offers to sell a piece of real estate to a non-profit for a price BELOW its appraised fair market value (FMV). The individual receives cash from the sale of the property plus a charitable income deduction for the FMV amount minus the sale price. ROSALIE MURREY MEMORIAL FOUNDATION assumes the duty of selling the property and reimbursing itself for what it paid the individual. The difference between the FMV and what it paid the donor is the gift amount.

• Who should take advantage of this option?
  People who want to remove an illiquid asset from their estate now, get cash in-hand, and receive a partial charitable income tax deduction.

• Financial Benefits
  Receiving a partial charitable income tax deduction and removal from one’s estate for estate tax planning purposes.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid for by the potential donor) is a really good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

Retained Life Estate

• What is this?
  The owner (or owners) deeds the property to a non-profit while retaining the right to live there; donor maintains property and all expenses during their lifetime. The property is then transferred to the non-profit within months of the donor’s passing, or the survivor’s passing (in the case of a couple). The property is then sold, and proceeds are applied per the donor’s (or donors’) wishes.

• Who should take advantage of this option?
  Those who are looking for a charitable income tax deduction and want the asset removed from the estate. A married couple with no mortgage, no children, and no plans to move (who may have been living there for 30 years already) are prime candidates for this, as an example. And, the individuals should NOT mind paying for the carrying costs (e.g. maintenance and repairs) for the rest of their lives, either.

• Financial Benefits
  The removal from the estate for estate tax planning purposes along with a partial charitable income tax deduction are the benefits.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid for by the potential donor) is a really good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

“Flip” Trust

• What is this?
  A piece of real estate is donated to a charitable remainder net income trust (“NICRUT”). The property is sold and the NICRUT “flips” to a standard unitrust format, is then invested into a diversified portfolio within the new standard trust, and pays 5-7% of the trust corpus for the donor’s lifetime.

• Who should take advantage of this option?
  An individual or couple who has a vacation home that the children don’t visit or want anymore. The individual or couple may also want a partial charitable income tax deduction while also removing the asset from the estate.

• Financial Benefits
  A quarterly income stream for life for one or more income beneficiaries (individual, couple, children, or grandchildren). A partial charitable income tax deduction is also a plus, as well as the removal of the asset from the estate for estate tax planning purposes. And, this option is great for donors wanting to convert low- or non-income producing property into a stream of income for themselves or loved ones while ultimately benefiting their favorite charities. A deferred charitable gift annuity (where the asset is donated but payout doesn’t come for a year or more later) could be similarly structured.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid for by the potential donor) is a really good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

Fractional Interest

• What is this?
  An individual or couple donates to charity an undivided interest in a piece of real estate property and receives a charitable income tax deduction. Rosalie Murrey Memorial Foundation and the individual or couple decide who will market property for sale. Upon the sale’s execution, the donor(s) and charity emerge with their respective portions of the net proceeds.

• Who should take advantage of this option?
  Those who want a say in how the property is marketed, unlike other options related to real estate donations. The donor(s) partner with the non-profit on the sale of the property.

• Financial Benefits
  The removal of the asset from the estate and the potential for a partial charitable income tax deduction (relative to the appraised value). Carrying costs between the donor and the nonprofit are also shared.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid by the potential donor) is a good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

Conservation Easement

• What is this?
  An individual or couple protects their land by donating or selling the development rights.

• Who should take advantage of this option?
  Someone who wants to receive a charitable income tax deduction but also have peace-of-mind that the property will be conserved in perpetuity.

• Financial Benefits
  The individual or couple receives a charitable income tax deduction or income for the difference between the fair market value (FMV) and the conserved value. The donor or donors STILL OWN THE LAND and can sell it subject to the conservation easement.

• What do interested parties need to prepare for a meeting?
  A qualified independent appraisal of the real estate property (paid by the potential donor) is a good start! Any information on “carrying costs” (e.g. insurance, property tax, maintenance, etc.) is also helpful to know.

Publicly Traded Stock

• What is this?
  Securities (also known as stocks) are purchased on the open market (such as companies like Microsoft or Home Depot) that can be easily traded on an exchange. Instead of selling the stock on the open market, it is donated.

• Who is it a good option for?
  This option is good for people who have purchased the stock over a year ago and therefore may be subject to long-term capital gains (and don’t want to incur capital gains tax if they sell it). Also, people who have “too much” of one type of stock in their investment portfolios (outside of a retirement plan), known as being “overweighted” in one asset class, and want to reduce risk by “re-balancing” and unloading that stock to charity.

• Financial Benefits
  The donors waive all capital gains tax liability upon the donation, thereby reducing risk in the portfolio, and are eligible for a charitable income tax deduction (for the year of donation, and then carried forward five years more, as appropriate, to maximize the deduction).

• What do interested parties need to prepare for a meeting?
  Having answers to these six questions:
  1. Who is the registered owner of the shares?
  2. What fund is the gift going into?
  3. When are the shares expected?
  4. What shares and how many are coming, and expected total dollar amount?
  5. What broker/trust company are they coming from?
  6. What is the cash/invested allocation? In other words, how much does the donor want to keep in cash within a new or established fund (e.g. a DAF)?

Mutual Funds

• What is this?
  A collection of securities (e.g. large cap value, municipal bonds, small cap growth) purchased on the open market (like Microsoft or Home Depot) that can be easily traded on an exchange. Five capital letters are usually the symbol to identify the stock (e.g. ABCDE). As with stocks/securities, they can be donated.

• Who is it a good option for?
  This is good for people who have purchased the mutual fund shares over a year ago and therefore may be subject to long-term capital gains (and don’t want to incur capital gains tax if they sell them). Also, it’s good for people who have “too much” of one type of mutual fund in their investment portfolios (outside of a retirement plan), known as being “overweighted” in one asset class, and want to reduce risk by “re-balancing” and unloading that mutual fund to charity.

• Financial Benefits
  The donors waive all capital gains tax liability upon the donation, thereby reducing risk in the portfolio, and are eligible for a charitable income tax deduction (for the year of donation, and then carried forward five years more, as appropriate, to maximize the deduction).

• What do interested parties need to prepare for a meeting?
  Having answers to these six questions, similar to stocks/securities:
  1. Who is the registered owner of the shares?
  2. What fund is the gift going into?
  3. When are the shares expected?
  4. What shares and how many are coming, and expected total dollar amount?
  5. What broker/trust company are they coming from?
  6. What is the cash/invested allocation? In other words, how much does the donor want to keep in cash within a new or established fund (e.g. a DAF)?

Privately Held Stock

• What is this?
  Securities that are NOT purchased on the open market which usually need to be sold to a specific party, not unlike real estate or another type of illiquid asset. These can be considered for donation.

• Who is it a good option for?
  Individuals who have received this type of stock, which may have long-term capital gains, and these individuals are charitably inclined. They may also want to move the asset outside of their estate. They may also have a time frame in which to dispose of this asset.

• Financial Benefits
  The donors waive all capital gains tax liability upon the donation, thereby reducing risk in the portfolio, and are eligible for a charitable income tax deduction (for the year of donation, and then carried forward five years more, as appropriate, to maximize the deduction).

• What do interested parties need to prepare for a meeting?
  Having answers to these eleven questions (the typical six questions asked of publicly traded stocks or mutual funds, plus five more):
  1. Who is the registered owner of the shares?
  2. What fund is the gift going into?
  3. When are the shares expected?
  4. What shares and how many are coming, and expected total dollar amount?
  5. What broker/trust company are they coming from?
  6. What is the cash/invested allocation? In other words, how much does the donor want to keep in cash?
  7. Would the company and/or other shareholders be in a position to purchase the shares?
  8. How quickly might the shareholders or the company be in a position to buy the shares?
  9. Would you make the gift of shares all at once or in several stages?
  10. Would you donate any of the shares during your lifetime, through your estate, or both?
  11. Prior to accepting the shares, see the company’s articles of incorporation, bylaws, shareholder agreements, and recent financial statements. Is that possible?

Charitable Remainder Unitrust (CRUT)

• What is this?
  A “CRUT” is a means to make an irrevocable gift that offers an income beneficiary a variable quarterly stream of income (which is the most common choice of frequency, for example) while leaving the remainder to charity.

• Who is it a good option for?
  People with either cash or highly appreciated non-cash assets held for more than one year who want to turn it into an income stream and/or move it from their estate.

• Financial Benefits
  They move the asset from their estate, receive a partial charitable income tax deduction on the value, and receive a quarterly stream of income for a term or for life (for themselves and/or others). A software illustration (from a company called PG Calc, for example) can be run by ROSALIE MURREY MEMORIAL FOUNDATION to show what the tax deduction and income stream could look like.

• What do interested parties need to prepare for a meeting?
  Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).

Charitable Remainder Annuity (CRAT)

• What is this?
  A “CRAT” is a means to make an irrevocable gift that offers someone a fixed quarterly stream of income (the most common frequency) while leaving the remainder to charity.

• Who is it a good option for?
  It is good for people with either cash or highly appreciated non-cash assets held for more than one year who want to turn it into an income stream and/or move it from their estate.

• Financial Benefits
  The donors move the asset from their estate, receive a partial charitable income tax deduction on the value, and receive a quarterly stream of income for a term or for life (for themselves and/or others). A software illustration (from a company called PG Calc, for example) can be run by ROSALIE MURREY MEMORIAL FOUNDATION to show what the tax deduction and income stream could look like.

• What do interested parties need to prepare for a meeting?
  Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).

Charitable Lead Trust (CLAT)

• What is this?
  A “CLAT” is a means to move one’s property out of one’s estate temporarily or permanently. At the same time, a charity or charities will receive at least an annual fixed stream of income for a time period of up to 20 years.

• Who is it a good option for?
  This option is good for people with an estate tax problem (e.g. assets more than $13.61 million for individuals, or $27.22 million for a married couple) who own HIGH-COST BASIS assets (meaning they aren’t worth much more than they purchased them for), and the donors don’t need these assets now. They are, of course, charitably inclined.

• Financial Benefits
  There is the potential for a charitable income tax deduction (for the Grantor-Retained CLAT version) and temporarily moving the asset from the estate. The Non-Grantor-Retained CLAT version does NOT offer a charitable income tax deduction but instead PERMANENTLY moves the asset from the estate.

• What do interested parties need to prepare for a meeting?
  Bring any and all information on the assets the person would like to donate (e.g. a financial statement, the original purchase amount, and more).