What is a charitable gift of beneficiary proceeds?
One of the simplest ways to make a charitable gift is to designate Thrivent Charitable as beneficiary of an IRA, tax-sheltered annuity, or 401(k) or 403(b) plan.
Beneficiary proceeds directed to charity are not subject to income or estate taxes, typically referred to as “double tax”, providing significant tax advantages to the giver and their family. These assets may also be used to fund a charitable remainder trust at death to benefit a spouse or the family.
When a donor names Thrivent Charitable beneficiary of specific assets, he/she enjoys some flexibility and simplicity in giving, including the ability to:
- Change this designation throughout life;
- Designate all or a portion of the assets to Thrivent Charitable;
- Designate Thrivent Charitable beneficiary without the help of an attorney; and
- Upon the donor's death, assets are directed to their charitable fund created to benefit his/her recommended charities.
- Donor completes a fund workbook and sends it to Thrivent Charitable.
- Once Thrivent Charitable receives the Fund Workbook, we draft a Fund Agreement. This document will be sent to the donor for signature and countersigned by Thrivent Charitable. The purpose of this document is to list the charities the donor wishes to benefit from and govern the administration of the donor’s perpetual fund. The donor may change the charitable beneficiaries at any time by revising the Fund Agreement.
- The donor includes the foundation on Beneficiary Designation forms
- The following language should be used: “Thrivent Charitable Impact & Investing, a Minnesota nonprofit corporation.”
- Thrivent Charitable Impact & Investing's Tax ID Number: 41-1802412.
- Thrivent Charitable Impact & Investing's mailing address:
600 Portland Avenue South, Suite 5100
Minneapolis, MN 55415
- Clients who need the retirement income while living but wish to benefit charity with any remaining value upon death.
- Clients who want the option to change this designation down the road.
- Charitably-minded clients who have no heir(s) to benefit from their estates.
- The amount designated to charity is given free of federal estate tax.
- Thrivent Charitable receives the specified assets upon the donor’s death, allowing for a potential charitable deduction against estate taxes.
- Save up to 70% of the value of the asset from federal estate and income taxes
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Our team of charitable gift planners utilizes deep charitable expertise to expand your clients' options and help meet their giving goals. Our collaborative approach will allow you to maintain your current client relationships while we provide the most relevant advice that aligns with your clients' financial priorities.
From left to right: Cindy Aegerter, Ben Boline, Nikki Johnson, Greg Shamey