Three Simple Fundraising Tips: Bequests, Brokerage Accounts & IRAs

Bequests, brokerage accounts and IRA contributions: all of these are important tools to include in your fundraising kit. Here’s some basic information about each, including how they are affected by the new tax law:

Bequests: Bequests are a simple, easy, and common form of charitable giving (8% of total annual giving, and 90% of planned gifts). All a donor has to do is add a clause in their will or trust, designating a specific amount of money (or stocks, bonds, assets) to be given to your nonprofit. Your nonprofit doesn’t have to have a complicated planned giving strategy, or a designated legal advisor, or a big marketing plan. All you have you to do is actively encourage people to consider a bequest to your nonprofit – on your website, brochures, enewsletters – as well as in personal meetings with supporters. Start building a list of folks who have done so, give the group a catchy moniker, and post the list (with permission) on your walls and website. Ask them to publicly share a personal story about why they chose to do so.  And note that bequests come for all kinds of people (not just the obviously well-to-do) - often as a surprise, from long time donors who have given small gifts over time, and whom you may not have even met.

Brokerage accounts: Many Boomers may not be to make significant cash donations, but as their parents pass on, they are quite likely to inherit appreciated stocks. Under the new tax law, folks who donate appreciated stocks, bonds or other assets to a charity will continue to be able to avoid all capital gains tax - regardless of whether or not the donor is able to itemize. To facilitate these gifts, your nonprofit needs to have a brokerage account (my recommendation: Schwab is the easiest and best option). It takes some doing to set it up, but there's no cost, and once the paperwork is in place you are ready to go. Be sure to make it clear on your donation page that you welcome gifts of stock, and that it's easy to do.

IRA Rollover Contributions: Folks who are 70 1/2 or older and have an IRA can make a charitable donation (of up to $100,000) directly from their IRA accounts. It's easy - and, similar to gifts of stock, can be done whether or not the donor is itemizing. Plus the amount of the distribution will be excluded from their taxable income, yielding a much better bottom line on returns; as well, these donations will count towards the annual required minimum distribution.

None of these tips are instant money-makers: we're just talking basic, long-term strategies, all of of them simple and well worth pursuing. You just need to make a decision to move forward and let folks know about these opportunities to support your good work.