Choices Abound for Charitable Gifts
Having more retirement money than you need is a great problem to have. That problem, though, is now much easier to solve thanks to the recent passage of the Pension Protection Act of 2006, which allows for tax-free charitable contributions from IRA retirement funds.
Now that the holidays are here, it's a great time to take advantage of this new opportunity. But donors still face multiple options for their gift: Support the entire community? Underwrite a special cause? Shore up a favorite charity? Here are three top charitable fund picks of Jim Williamson, President of the Community Foundation of Greater New Britain:
1) Community Foundation of Greater New Britain Discretionary Funds: Meeting the Ever-Changing Needs of Our Community.
IRA transfers to any of the Foundation's more than 20 Discretionary Funds – or establishment of your own fund – can help address a broad range of current and future community needs. These "unrestricted" funds are distributed at the discretion of the Foundation's Board of Directors, who evaluate all aspects of our community's well-being – arts and culture, community development, education, environment, health and human services. Strategic grants are awarded to select projects and programs.
2) Field of Interest Funds: Connecting Personal Values to High-Impact Opportunities.
IRA transfers to a Field of Interest Fund allow donors to target gifts to causes important to them: arts, early childhood education, neighborhood revitalization, youth welfare, and more. The Community Foundation awards grants to community organizations and programs addressing the donor's specific interest area.
Williamson says, "For those who are particularly passionate about a single cause, Field of Interest Funds provide strategic, lasting support, even as needs change over time."
3) Designated Funds: Helping Local Organizations Sustain and Grow.
IRA transfers to Designated Funds allow donors to support the good work of a specific nonprofit organization – a senior center, museum, or any qualifying nonprofit charitable organization.
According to Williamson, "For people who want to help secure the future of their favorite charities, our endowed Designated Funds give nonprofits a steady stream of income, plus planned giving and investment management services."
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