You may also make a gift to Phoenix Seminary from your individual retirement account (IRA). This is especially convenient for our friends who are age 72 or older and required to take minimum distributions (RMD). In order to maximize the tax benefits, funds must be transferred directly from your IRA to Phoenix Seminary by your investment manager or account custodian. People who are age 70 ½ or older can contribute up to $100,000 from their IRA directly to a charity and avoid paying income taxes on the distribution. This is known as a qualified charitable distribution (QCD). It is limited to IRAs, and there are other exclusions and considerations as well.

A gift from your estate may be added to a new will or, by codicil, an existing document. Here is sample bequest language to share with your attorney:I give, devise, and bequeath (insert amount, percentage, or remainder of estate) to Phoenix Seminary, tax identification number 86-0711495, located at 7901 E Shea Blvd, Scottsdale, AZ 85260, for general operations or (donor designated purpose). While most bequests are funded with cash, you may also choose to make a tax-saving estate gift of stock, real or personal property, stock options, or savings bonds.

Some assets result in both estate and income taxation if left to non-spousal beneficiaries (children, grandchildren, etc.). To reduce your tax burden, consider leaving assets such as stock or real estate to family members, and leave retirement plans (401Ks, IRAs, etc.) and commercial annuities to charitable organizations, such as Phoenix Seminary. Not only will your estate receive a deduction for the value of your gift, but as a nonprofit organization, Phoenix Seminary does not pay any income tax on the distribution of retirement plans or commercial annuities to it. You may also wish to name Phoenix Seminary as the irrevocable owner and beneficiary of an unneeded insurance policy. Please contact your plan administrator or custodian for more information and the appropriate change of beneficiary forms. Careful planning can help you maximize the value of your gift while potentially reducing your tax burden both during your lifetime and beyond. Consider the many assets that we acquires throughout life—retirement plans, commercial annuities, life insurance, savings, or bonds. All these assets may be good candidates for a tax-saving gift to Phoenix Seminary, either now or in the future.

Cash is often the simplest asset used to make an outright charitable donation. However, you may consider using other assets. You may also wish to name Phoenix Seminary as the beneficiary of a donor-advised fund, or DAF. In most cases, you will receive an upfront income tax deduction as well as capital gains tax avoidance for donations of appreciated assets.

A CGA is a good giving option that involves a charitable gift and an annuity. You make the gift to Phoenix Seminary and then you receive fixed annuity payments each year for the rest of your life. CGAs are a good giving option for you if you want to make a large gift while still protecting your income. You may want to ensure the future of your retirement funds, or your children’s as well. Or you may have already retired and want to enjoy a yearly income while still making a significant impact for Phoenix Seminary.

Giving appreciated stock is an excellent way to provide funding for Phoenix Seminary and advance our mission while avoiding capital gains taxes for you as a donor.

Occasionally a donor will, as part of their estate plan, leave a real asset to a nonprofit. This might be a house, vacation home, art collection, or any other physical object or interest. Typically these function similarly to simple bequests of assets, except that the nonprofit must first liquidate the asset (e.g., selling the house) so that the proceeds can be used to serve the mission of the nonprofit. In rare cases, the donor may have placed restrictions that prevent the outright sale of the items, in which case the nonprofit must make a judgment about whether to accept the gift. Having board-approved gift acceptance policies on hand can help nonprofits navigate these decisions.

There are several types of trusts, and the choice of which one to set up will depend chiefly on the needs of the donor to provide for other beneficiaries and the type of income they are trying to shield from taxes (e.g., capital gains from stocks, the future appreciation of a home in a rapidly expanding city, etc.). All charitable trusts are irrevocable.

Charitable Lead Trusts (CLT)

Charitable lead trusts give Phoenix Seminary a fixed payout annually, with the donor or the donor’s beneficiary receiving any remaining balance after the specified period. A charitable lead trust can provide either a fixed payout as a percentage of the assets first placed in the trust (an annuity trust) or a fixed percentage of the fair market value of assets at the conclusion of each year (a unitrust).

Charitable remainder Trusts (CRT)

Charitable remainder trusts are the inverse of CLTs: the trust gives the donor or Phoenix Seminary a fixed payout annually, while Phoenix Seminary receives any remaining balance after the specified period. The two types of CRTs are the CRAT—a charitable remainder annuity trust, which provides a fixed payout as a percentage of the assets first placed in the trust—and the CRUT—a charitable remainder unitrust, which provides a fixed percentage of the fair market value of assets at the conclusion of each year.