How Much Gets Taken Out for Taxes?

Who wants to spend their life saving for retirement only to have a chunk of that savings disappear later?

Nobody.

So, if you want to make a difference with the ELCA Foundation after your lifetime, consider a gift from your retirement plan or IRA.

Why? As a nonprofit organization, we do not have to pay income taxes on the gift. Loved ones do.

In fact, retirement plans and IRAs can be among the largest sources of taxable income when paid to the beneficiary.

If you are considering a gift to a charity after your lifetime, it is usually better to leave nontaxable assets (such as stocks and real estate) to your loved ones and the taxable assets (retirement accounts and IRAs) to tax-exempt charitable organizations, such as the ELCA Foundation.

Compare the tax consequences:

$100,000 IRA left to a loved one vs. the ELCA Foundation or another ministry.

Next Steps

To complete your gift, contact your retirement plan or IRA administrator (or visit their website) and complete a form naming the ELCA Foundation as the beneficiary. You’ll be prompted to include the percentage you’d like us to receive. It's important to contact the ELCA Foundation next to complete a donor-directed distribution agreement telling us where and how you want your gift to be used.

Beneficiary forms are flexible and can be changed at any time.

We are so grateful for your support and care for our mission. We’d be happy to talk to you about the difference you can make at the ELCA Foundation. Simply contact your regional gift planner.