Giving to and for the Next Generation
A gift to TNDC is an opportunity to communicate your values and build the kind of future you hope future generations will inherit. Because of your legacy gift, families, kids, and individuals from all walks of life will have a place to call home, a supportive network, and grow as leaders affecting lasting change in San Francisco.
See below for some easy ways to leave your legacy. Thank you for considering supporting TNDC's mission and vision as your legacy gift!
Charitable Bequests — Gifts That Cost You Nothing
People's most common legacy gift to support TNDC is a gift in their will or living trust, also known as a charitable bequest. There's no need to write a check now and your assets remain entirely under your control during your lifetime. To make a charitable bequest, consider adding language like this to your will or living trust:
"I give [ ___ percent of my estate, OR description of asset, OR _____ dollars] to TNDC, a California nonprofit corporation, 201 Eddy Street Francisco, CA 94102 (Federal Tax ID #94-2761808.), for [its general use, OR for the following restricted purpose _____ ]."
If you wish to restrict your gift, please contact giving@tndc.org to ensure TNDC can fulfill your wishes.
Beneficiary Designations — Gifts That Cost You Nothing
Some assets you no longer need can be easily given to TNDC with a beneficiary designation!
Life Insurance: If you have a life insurance policy you bought years ago and no longer need, you can name TNDC as a full, partial, or contingent beneficiary. You can also sign over a fully paid policy and receive a tax deduction for your gift.
IRA, 401K & Other Retirement Assets: As retirement plans are taxed differently than other assets, they can become a tax liability when inherited. Designating TNDC as a beneficiary of these assets can reduce or eliminate this liability. You can include TNDC on a beneficiary designation form to receive a specific percentage of your account or as a contingent beneficiary.
Bank & Brokerage Accounts: Assets like certificates of deposit, savings bonds, bank and brokerage accounts can become wonderful gifts! Simply name TNDC as the pay-on-death (POD) or transfer-on-death (TOD) beneficiary.
Donor Advised Funds (DAF): A beneficiary designation determines where the final distribution of a DAF goes. You can easily name TNDC as the successor of your DAF account. Or if you'd prefer to leave a balance in your DAF to your children and grandchildren to carry on your philanthropy, simply designate a portion of the account value to TNDC.
Charitable Gift Annuities — Gifts That Provide Income
Charitable gift annuities provide significant support to TNDC while also providing an immediate income tax deduction!
Gift annuities are easy to set up and can be funded with a minimum cash or stock gift of $20,000. Typically, you must be at least 60 years old and the annuity rate varies based on your age. For instance if you're 75, and give a $25K gift, your rate will be 6.2%, giving an annual payment of $1,550. You can also receive a tax deduction if you itemize, and gift annuities can provide lifetime payments to one or two people.
Charitable Remainder Trusts — Gifts That Provide Income
You can turn assets into lifetime income and save on taxes by creating a charitable trust. First, you make an irrevocable transfers of assets (cash, stock, or real estate) to fund your trust. The assets are sold and invested to pay income to one or more beneficiaries or your heirs for life or a designated amount of time. Your trust can also pay income to your heirs for life or for a designated period of time.
If funding your charitable trusts with appreciated assets like stock or real estate, you can avoid the capital gains tax you would've owed if selling these assets. Depending on the assets are highly appreciated, the savings can be significant. Also, once the assets funding your charitable trusts stop being part of your estate, a charitable trust can reduce or eliminate estate tax.
When the trust ends, the remainder is given to TNDC or any cause you choose.
IRA Charitable Rollover & IRA Gifts by Designation — Gifts That Reduce Your Taxes
If you're over 70 ½ years old, you can use IRA assets to make charitable gifts. IRA Charitable Rollover are immediate distributions from your IRA account to a charity like TNDC–ultimately counting toward your required minimum distribution (RMD). By your reducing taxable income, IRA Rollover can lower your taxes and may help you avoid Medicare high-income surcharges. Even more, IRA Rollover gifts are tax-free for qualified public charities, meaning 100% of your gift will make an impact at TNDC.
As retirement assets are taxed differently, IRA’s left to loved ones can actually become a tax liability. When you leave some or all of your IRA to a good cause, like TNDC, and other, less tax-vulnerable assets to loved ones, you can avoid this liability. To make a gift through your IRA, ask your plan administrator for a beneficiary designation form and designate TNDC to receive a percentage of your account or as a contingent beneficiary.
Appreciated Stock — Gifts That Reduce Your Taxes
When you donate appreciated stock, bonds, or mutual funds you’ve owned for more than a year to TNDC, you’ll receive a tax deduction for the fair-market value and avoid capital gains tax. If you itemize, your may get additional tax savings.
If you use your appreciated stock to fund a charitable gift annuity or charitable trust, you won’t owe capital gains tax when those assets are sold and you’ll receive an immediate tax deduction. All while also creating income for yourself and/or your loved ones.
Charitable Lead Trust — Gifts That Benefit Your Loved Ones
Charitable lead trusts share trust income with a charity, such as TNDC. You can fund a charitable lead trust by transferring cash or other assets to your trust. The trust will then make payments to TNDC on a fixed schedule for a set amount of time, such as the life of one or more individuals. When the trust term ends, the remaining trust assets are transferred to non-charitable beneficiaries—typically yourself or family members. Charitable lead trusts may reduce your taxes and may even reduce estate and gift taxes for your heirs.
Retirement Plan Assets — Gifts That Benefit Your Loved Ones
Naming TNDC as a beneficiary of your retirement account is an easy way reduce taxes for your loved ones and maximize your support to a good cause. If you leave your retirement plan to your family, they'll have to pay income tax. For instance, if you leave a $300,000 retirement plan to your kids, they will have to pay an $80,0000 income tax. Whereas, TNDC doesn't pay this tax, so all $300,000 will go to our essential work in San Francisco.
To make a gift through your retirement assets, ask your plan administrator for a beneficiary designation form and designate TNDC to receive a percentage of your account or as a contingent beneficiary.
Questions about Legacy Giving?
Contact Amory Sharpe, Chief of Fund Development and Strategy, at asharpe@tndc.org.
