Many people make the mistake of leaving their IRA, 401(k) or other retirement funds to family, and then giving entirely different gifts from their will to charity. In most cases, this is the exact opposite of what should happen.
When you leave your retirement funds to family, you create a taxable event. This gift will be treated as income when they withdraw the funds, and your loved ones will be taxed accordingly.
However, by giving those funds to Guiding Light, you eliminate the tax bill and provide meaningful support for this mission that means so much to you. Then, you can give more tax-efficient gifts from your will to provide for the needs of your loved ones.
How do you give retirement funds to ministry? It’s actually quite simple. You can…
- Designate Guiding Light as a beneficiary on the forms provided by your account manager, specifying the amount you want to give.
OR
- If you would like to give your retirement funds to multiple charities, consider working with our trusted partners at Barnabas Foundation. Simply list Barnabas Foundation as the charitable beneficiary on your beneficiary designation forms. Then, you provide Barnabas Foundation with a list of your favorite ministries (and the percentage you want each to receive). They’ll take care of the distributions, at the proper time.
Is leaving your retirement funds to Guiding Light the right giving option for you? Call Starla at 616-451-0236 or email Starla@GuidingLightWorks.org to learn more.
