UUFSMA Endowment Fund Donation Policies
The UUFSMA Endowment Fund accepts contributions from living donors in the form of cash, checks, PayPal, or bank transfers. Deferred gifts to be given after death are also welcome. After death, a person’s estate may be left to heirs, non-profit organizations or the state. It is strongly recommended to consult with financial or legal advisors to direct the distribution of assets. Mexican, U.S. and Canadian inheritance and tax laws are complicated.
IRA Rollover or Qualified Charitable Distributions (QCD)
This is a popular way to make an immediate tax-free gift by check from an IRA account. Donors with U.S. Individuals who turn 70 after 2019 are required to take a minimum distribution (RMD) withdrawal from their Individual Retirement Accounts (IRAs) each year starting in the year following their 72nd birthday. All or a portion of the RMD (maximum of $100,000) may be given directly to a qualified charity such as the UUFSMA Endowment Fund, without paying income taxes on the withdrawal. There are no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction. It sounds a bit complicated but it is simple to establish. The IRA administrator should make certain the QCD moves directly from the IRA to the endowment fund to avoid taxes. https://plannedgiving.uua.org/ira-charitable-rollover
The UUA Umbrella Giving Program
The UUFSMA Endowment Fund may also receive gifts that require the sale of stocks, bonds, real estate or other more complicated instruments via the UUA Umbrella Giving Program.
This is a long established program that receives gifts that can be distributed to a variety of UU organizations including UUFSMA. Benefits include:
- A simplified estate plan.
- Access to life income gift options such as charitable gift annuities. (The management of this annuity is complicated and UUFSMA is not be able to manage annuities.)
- Support from knowledgeable, professional staff.
- Allows our congregation to focus its resources on programming instead of gift administration.
- Creates a way for you to give anonymously.
- Leaves a lasting legacy.
There is no charge for administering the Umbrella Program, but a there is a suggested contribution of 10 to 25% of the gift to cover the costs of administration.
A fact sheet is available at: http://plannedgiving.uua.org/documents/u/unitarian-universalist-association/pdf-umbrella-giving-program.pdf
Funds may be left outside of a will by beneficiary designation. The Endowment Fund could be designated the beneficiary of a bank account, retirement fund such as an IRA, or a life insurance policy. The designation can be easily made or changed without changing a will. Again, careful planning with an estate or legal counselor is strongly encouraged.
The UUA Legacy Gifts Team will consider accepting gifts of Canadian and US real estate on a case by case basis. Determination will be based on location and salability of the property. The proceeds of the property would be given to the UUFSMA less a contribution to the UUA to reimburse the cost of managing the sale. The Legacy Gifts Team should be consulted when the donor plans to gift the property. The address is firstname.lastname@example.org. The donor’s financial or legal advisor should also be consulted. The donor may want to consider an outright current gift, a gift by will or living trust, a retained life estate or deferred charitable annuity.
Real estate in Mexico may be given directly to the UUFSMA Fellowship in accordance with the Fellowship’s Gift Acceptance Policy. The property may be an outright current gift or gift by a Mexican will. Please be advised that an heir who resides outside Mexico may be subjected to a 25% tax unless the heir becomes a temporary or permanent Mexican resident before the will is probated. If person dies without a will or living heirs, the property goes to the state of Guanajuato. Donors are strongly urged to consult with financial or legal advisors regarding taxes and related matters.