HRC and the HRC Foundation are two separate but affiliated organizations. Because of HRC’s grassroots lobbying and political work, gifts to HRC are not tax-deductible. Gifts to the HRC Foundation are fully tax-deductible based on the Foundation’s entirely non-political, educational, and outreach mission.
When you’re deciding how to leave a legacy for equality, the tax consequences of a particular gift may be a consideration. If the tax consequences of your gift are not a consideration for you, a gift to HRC will give us the greatest flexibility in putting your gift to work on behalf of the LGBTQ community. Either way, your gift will be invested in the shared mission of a future of equal rights for all people.
There are a variety of gifts to the HRC Foundation that may help reduce income taxes, estate taxes and capital gains taxes.
Charitable Gift from Your IRA
You can make a qualified charitable distribution (QCD) from your IRA and make an immediate impact. Here’s how it works:
- You must be 70 ½ or older.
- An individual may transfer up to a total of $100,000 per year and a married couple may give up to $200,000.
- Your gift must be transferred directly from your IRA account to the HRC Foundation.
- Your gift is a transfer of funds from your IRA to the HRC Foundation, so while you do not receive a charitable deduction, it does not create taxable income for you.
- If you are 72 and older, the transfer of funds counts towards your annual Required Minimum Distribution* from your IRA.
If you’re interested in this popular way to support HRC, download a sample letter for your IRA administrator here.
* Congress has waived the annual Required Minimum Distribution from IRA Accounts in the year 2020 as part of the CARES Act in response to COVID-19. Please consider seeking advice from your financial advisor or tax professional to understand how recent changes to laws governing retirement plans may impact you and your charitable gift.
Retirement Plan Gift
Retirement assets are among the most heavily taxed, making them an ideal resource for charitable giving once you no longer need the assets yourself. As the charitable affiliate of HRC, the HRC Foundation is exempt from paying the taxes that might otherwise be owed. Consider making the HRC Foundation a beneficiary of your retirement assets and leaving other less-heavily taxed assets to loved ones.
Be sure to let us know if you have included the HRC Foundation as a beneficiary of a retirement account. Providing us with documentation is the best way to ensure that we receive the gift you intend for us.
Life Insurance Gift
It’s not uncommon for people to have a life insurance policy that has outlasted its original purpose. If you have a life insurance policy, you can use it (or a percentage of it) to reduce your taxes and create a gift for ADL that demonstrates your commitment to the future of the LGBTQ movement.
- Request a beneficiary designation form from your life insurance company and make the HRC Foundation a full, partial or contingent beneficiary.
- Sign over a fully paid policy. You will be allowed a tax deduction for your generosity.
Potential benefits include:
- You could reduce your income taxes;
- You might receive additional tax deductions if you make annual gifts so the HRC Foundation can pay the premiums;
- You can see firsthand how your gift fuels the LGBTQ movement if the HRC Foundation cashes in the policy;
- You can create your legacy of equality. If the HRC Foundation retains the policy to maturity or you name it as a beneficiary, once the policy matures, the proceeds of your policy will be paid to the HRC Foundation.
CDs, Bank and Brokerage Accounts
One of the easiest ways you can help achieve full equality for LGBTQ people is by making HRC the beneficiary of a certificate of deposit, a checking or savings bank account, or brokerage account. Simply request a Pay on Death (POD) or Transfer on Death (TOD) designation form from your financial institution.
There are many other giving options you may consider. I would love to help tailor your gift to meet your personal and philanthropic objectives. Please contact me directly at firstname.lastname@example.org. Thank you for your support.
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The content found on this site is general in nature and intended to be used for informational purposes only. It should not be relied upon as legal, tax, accounting or other professional advice. To determine how a gift or estate planning decision might affect your particular circumstances, it is expressly recommended that you consult an attorney, financial advisor or other qualified professional.