Ways to Give

Individuals age 70.5 and older can move up to $105,000 per year from their Individual Retirement Accounts (IRAs) directly to their favorite charity or charities without it affecting their taxable income.

People who are charitably inclined, don’t want or need the income, and don’t want or need their Required Minimum Distribution (required for those age 73 and older).

First, individuals should contact their IRA plan administrator to start the distribution process. When they’re ready to send the QCD, they can have the check made payable to “ESNH” and mail to:

First County Foundation
45 Kennebunk Rd.
Alfred, ME 04002

Next, the person should call FCF at 207.459.7055 or email Rachel Stansfield at restansfield@yorkcountymaine.gov of the intended gift along with the following information: Name, gift amount, anticipated date of check arrival, and name of IRA custodian.

For those who are charitably inclined but want to keep their bequest intentions revocable for now.

This gift would NOT be included as part of one’s estate and would not be taxed as income.

An individual should bring any beneficiary change forms from the relevant retirement plan custodians. FCF can offer suggested language for this person to complete and file.

Securities (also known as stocks) are purchased on the open market (such as companies like Microsoft or Home Depot) that can be easily traded on an exchange. Instead of selling the stock on the open market, it is donated.

This option is good for people who have purchased the stock over a year ago and therefore may be subject to long-term capital gains (and don’t want to incur capital gains tax if they sell it). Also, people who have “too much” of one type of stock in their investment portfolios (outside of a retirement plan), known as being “overweighted” in one asset class, and want to reduce risk by “re-balancing” and unloading that stock to charity.

The donors waive all capital gains tax liability upon the donation, thereby reducing risk in the portfolio, and are eligible for a charitable income tax deduction (for the year of donation, and then carried forward five years more, as appropriate, to maximize the deduction).

Having answers to these six questions:

• Who is the registered owner of the shares?
• What fund is the gift going into?
• When are the shares expected?
• What shares and how many are coming, and expected total dollar amount?
• What broker/trust company are they coming from?
• What is the cash/invested allocation? In other words, how much does the donor want to keep in cash within a new or established fund (e.g. a DAF)?

This is good for people who have purchased the mutual fund shares over a year ago and therefore may be subject to long-term capital gains (and don’t want to incur capital gains tax if they sell them). Also, it’s good for people who have “too much” of one type of mutual fund in their investment portfolios (outside of a retirement plan), known as being “overweighted” in one asset class, and want to reduce risk by “re-balancing” and unloading that mutual fund to charity.

Having answers to these six questions, similar to stocks/securities:

• Who is the registered owner of the shares?
• What fund is the gift going into?
• When are the shares expected?
• What shares and how many are coming, and expected total dollar amount?
• What broker/trust company are they coming from?
• What is the cash/invested allocation? In other words, how much does the donor want to keep in cash within a new or established fund (e.g. a DAF)?

Securities that are NOT purchased on the open market, which usually need to be sold to a specific party, not unlike real estate or another type of illiquid asset. These can be considered for donation.

Individuals who have received this type of stock may have long-term capital gains and these individuals are charitably inclined. They may also want to move the asset outside of their estate. They may also have a time frame for disposing of this asset.

Having answers to these eleven questions (the typical six questions asked of publicly traded stocks or mutual funds, plus five more):

• Who is the registered owner of the shares?
• What fund is the gift going into?
• When are the shares expected?
• What shares and how many are coming, and expected total dollar amount?
• What broker/trust company are they coming from?
• What is the cash/invested allocation? In other words, how much does the donor want to keep in cash?
• Would the company and/or other shareholders be in a position to purchase the shares?
• How quickly might the shareholders or the company be in a position to buy the shares?
• Would you make the gift of shares all at once or in several stages?
• Would you donate any of the shares during your lifetime, through your estate, or both?
• Prior to accepting the shares, see the company’s articles of incorporation, bylaws, shareholder agreements, and recent financial statements. Is that possible?