Fundraising

In giving securities, stocks, bonds, or mutual funds instead of cash, you may benefit from tax savings that would allow you to make a larger charitable gift at the same cost to you.

When you arrange for a gift annuity, a specified amount of cash, appreciated securities, or other property is transferred to Fairhaven. In exchange, you receive payments on a regular basis for the rest of your or a loved one’s life.

Since it is determined when a gift annuity is created, the payment never changes. A portion of the money used to fund the annuity is automatically returned with each payment, which accounts for a portion of each gift annuity payment being tax free for a number of years.

Generations of Fairhaven legacies and friends have chosen to share by naming the Fairhaven Foundation in their will, bequest or as a beneficiary in a life insurance or retirement policy. Providing future support to Fairhaven Senior Services in this manner, often only requires the addition of a codicil or directive noting the wish to support Fairhaven.

Please consider discussing your plans with a member of our team so your gift can be properly stewarded and recognized. We advise donors to complete a Letter of Intent and to work with a staff member to create a personalized Gift Agreement. This ensures that your gift can be accomplished exactly to your specifications.

For additional information on bequests, or to learn about the different options for including Fairhaven Foundation in your will or estate plan, please contact us. Talking with a staff member can help you define both your philanthropic goals and the different ways to accomplish them.

Giving Through Your Will or Trust: Everyone should have an estate plan. Only then can you ensure that your loved ones will be provided for and your charitable goals met. You can continue to support Fairhaven by making a gift through your will:

• A percentage of your estate.
• Specific property such as stocks, bonds, or real estate.
• A blended bequest—a specific amount plus a percentage or all of the remainder after beneficiaries receive their bequests.

Beneficiary Designations: Retirement plans and life insurance policies offer a convenient option to list Fairhaven Foundation as one of your areas of philanthropy. By adding us on the beneficiary designation form, you can distribute a percentage of the proceeds or the entire amount. Not only is this an easy way to give, but it is also flexible—you can review and adjust beneficiary designations anytime you want.

Life Insurance: Naming Fairhaven Foundation as a beneficiary in an insurance policy can be a simple way to leave your legacy.

IRAs and Other Retirement Accounts: Retirement accounts that are not depleted during your lifetime can be subject to income tax for your heirs and possibly estate taxes upon distribution. Designating these funds as an estate gift can be a tax-efficient way to give.

Establishing a gift, either now or in the future, can also provide consistent income to you and your family.

Residences, vacation homes, farms and vacant land may be donated to the Foundation and provide tax benefits for the donor. In most cases, the Foundation will sell the real estate and the profits will be used to support the fund of your choice.

Charitable giving from an IRA

When IRA holders reach the age of 72, they must start taking a Required Minimum Distribution (RMD) from their IRA. When they take that distribution, they have to add it to their adjusted gross income (AGI) and pay federal taxes on it.

There is a more tax-efficient option you should consider. You can direct your IRA custodian to make a tax-free gift directly from your IRA to a qualified public charity, such as a 501(c)3 organization like Fairhaven Foundation.

This Qualified Charitable Distribution (QCD) will not count as income for the donor, so no additional taxes are incurred and no higher tax bracket looms. However, the QCD can count toward satisfying the donor’s RMD.

When you do your taxes, it is important to report the amount of the QCD to the IRS so you don’t get taxed on the withdrawal. The QCD should not be reported as income. IRA custodians are not required to report this information on their 1099-R, so it is up to you to report it.

How does it work?

Using the Fairhaven Foundation as an example of a qualified public charity, an IRA holder contacts their IRA custodian and requests the custodian donate from their IRA account directly to Fairhaven Foundation.

Up to $100,000 can be donated from an IRA account tax-free. The gift must go directly from the IRA custodian to the charity, and the amount of the gift satisfies all or part of the RMD.

The IRA-holder would then contact the Business Office at Fairhaven Senior Services to let us know a gift from their IRA is coming (262-473-2140). Please have the following information ready when calling for proper receipting and acknowledgement purposes:

• The donor(s) name
• The check stub, or an included memo
• The fund it is intended to support
• A notation the donation is from their IRA or is a qualified charitable distribution

Remember – Your gift must be processed by Dec. 31 to receive the benefit for that year. And, if you are married, your spouse is also eligible to contribute up to $100,000 from their IRA. Please consult with your tax preparer or financial advisor to learn what is best for you.

Contact Fairhaven Senior Services at 262-473-2140 and ask for the Business Office for more information about making a qualified charitable distribution from your IRA.