Gifts Anyone Can Make
Gift Through Your Will or Estate
Bequest
Details:
A bequest is a gift made through your will or living trust. It is one of the easiest gifts to make to North Star. It costs you nothing during your lifetime, and it's "revocable," meaning if your circumstances change you can update it. If you already have a will or living trust, you can amend it easily through a codicil (amendment) to include a bequest to North Star.
Donor Snapshot:
Bequests are one of the easiest and most popular ways to make a legacy gift. It can fit any donor: single, married, with or without children or grandchildren, wealthy or not. Often a bequest is simply a set amount or a percentage of an estate.
Buy Low. Give High.
Appreciated Stocks
Details:
You transfer ownership of publicly traded securities (stocks, bonds, mutual funds, etc.) that you have owned for more than one year, directly to North Star. You can claim an income tax charitable deduction based on the fair market value (FMV) of the stock and may also avoid paying the capital gains tax on the stock's appreciation (increase in value).
Donor Snapshot:
Donating appreciated stock is a straight-forward process; you work with your financial advisor to initiate a transfer. If you choose to go this route, please let us know ahead of time and we can help. As always consult with a tax advisor for personalized advice.
Large Gift. Low Cost.
Life Insurance
Details:
You simply designate North Star Community Services as a beneficiary of your life insurance policy. When the time comes, North Star receives the proceeds. You can provide a larger gift with maximum benefits for relatively little cost. Proceeds are generally exempt from federal estate taxes.
Donor Snapshot:
Generally these donors have a "paid-up" life insurance policy in which nobody needs the proceeds. It's a great option that won't affect current cash flow. It's also a flexible option as the donor can easily change a beneficiary designation if circumstances change.
Avoid Tax-Heavy Inheritances
Retirement Plans
Details:
You name North Star Community Services as a sole beneficiary or percentage beneficiary of your IRA, 401(k), or other retirement account. When the time comes, the amount designated passes to North Star income- and estate-tax free. Note: This does not affect your required minimum distributions (RMDs) during your lifetime.
Donor Snapshot:
These donors are typically individuals with no spouse/heirs, those in high tax brackets, or someone who wants to leave a legacy. Naming a charity like North Star as beneficiary can help avoid income tax on distributions, reduce the size of the taxable estate and support North Star without paying taxes. Please consult your attorney.
A Tax-Free Gift?!
Charitable IRA Rollover
Details:
The Qualified Charitable Distribution (QCD), also known as an IRA Charitable Rollover allows taxpayers aged 70½ to make a tax-free charitable gift directly from your IRA to North Star. This gift can help to satisfy your Required Minimum Distribution (RMD), which is required by the IRS if you are aged 73 (born between 1951-1959) or age 75 (born after 1960) - please consult your tax professional. Funds should be directly paid to North Star and not withdrawn first.
Donor Snapshot:
This will primarily benefit IRA owners aged 70½ or older who wish to make a charitable gift while minimizing their tax burden. It is ideal for those needing to take a Required Minimum Distribution but do not need the extra income, which can allow them to lower their taxable income and avoid a higher tax bracket.
Contact us to discuss your gift:
- Jodie Muller
- North Star Community Services, Inc.
- Director of Development & Public Relations
- (319) 226-8304
As always, this information is for educational purposes only and is not intended to be tax, financial, or legal advice. Please consult with your tax advisor, lawyer, or financial advisor for guidance on your specific situation.
North Star Community Services, Inc. is a qualified tax-exempt 501(c)(3) nonprofit organization, as recognized by the IRS.