Planning Your Legacy this Make-A-Will Month
Thank you for being an invaluable member of the Hired Community! Support from community members like you bridge the gaps from government grants and contracts and provide flexible funds that empower Hired to meet participants’ basic needs while they prepare for and secure family-sustaining work, by providing holistic supports and services to alleviate barriers to employment.
As a member of Hired’s Advancement team, I am passionate about connecting donors to Hired’s work and impact in community. In this resource, I will share a few ways that donors can support the missions they care about, while making financially sound decisions with their assets.
Make or Update Your Will
There are many resources online to make a will for little, or no cost! Many nonprofits partner with Free Will, a resource that makes it easy to put together your plans for your loved ones, so that your financial impact and intentions can last a lifetime.
By sharing your intention to leave support behind for Hired and our work in community, you can decrease tax liability for your estate, giving more funds to your loved ones and to the causes you care about.
Did you know? 1 out of 6 people who use Free Will leave a bequest from their will and estate for a nonprofit organization that is meaningful to them.
Choose Hired for your IRA Qualified Charitable Distribution
Recently, I was speaking with a donor who mentioned how easy it was to give to the nonprofits he cares about from his IRA, while also decreasing his taxable income. He recommended that I share this giving method with our supporter community, and that’s why I’m writing to you today!
If you’re 70 ½ or older, you can transfer up to $108,000 per person from your IRA to Hired, annually, satisfying your Required Minimum Distribution. This type of giving reduces your highly taxable income, reduces processing fees, and helps you to stay within a lower tax bracket.
Donated IRA funds are directly transferred from the account custodian to Hired. Requests must be made before the end of December 31 in order to count for the calendar year. The contributions are not count towards your adjusted gross income, so you can benefit from decreased tax liability.
Set up a Donor Advised Fund (DAF)
Many donors contribute to a Donor Advised Fund (DAF) through a financial institution (for instance, Fidelity Charitable or Thrivent), or through a fund held by a community foundation (such as the Minneapolis Foundation). After you contribute, you receive an immediate tax deductions for your contributions. You can easily give with non cash assets, including stocks, securities or mutual fund shares, or cash equivalents from a brokerage account.
By using a DAF, funds and assets contributed into the DAF are then invested and can grow over time, which can increase your impact and charitable giving. Depending on contribution that you recommend be given as a grant to the nonprofit, you may be eligible for additional benefits (please consult a tax advisor). In general, you do not receive a tax deduction when making gifts/grants from the DAF, as you received them when you contributed to the fund.
These are few of the ways that you can become a financially savvy donor and make the most impact with your giving!
Our team encourages our community to check out other resources and options to do what is best for their unique financial situations.
This year, I invite you to consider making a gift to Hired, using a vehicle that also supports you in reducing your tax liabilities, supports your estate plans, and maintains your legacy to your community, and the nonprofits, you care about.
And thank you for all the ways you generous support Hired, our community, and our collective progress in building a better workforce and economy for Minnesota, and better futures for our participants and their families.
-Elisabeth, Individual Giving and Communications Manager
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