Pass It On
Consider a Donation of Retirement Assets
Retirement plan assets are a great way to make a donation to Cambridge in America because they not only help support Collegiate Cambridge, but they also can provide tax relief for your family.
Money in an employee retirement plan, IRA or tax-sheltered annuity may be subject to federal and state estate taxes. In addition, each of these plans contains income that has yet to be taxed. When a distribution is made from your retirement plan account to a beneficiary, that person will owe federal income tax in addition to applicable state income taxes.
Consider leaving your family less heavily taxed assets and leaving your retirement plan assets to Cambridge in America to support Collegiate Cambridge. As a nonprofit organization, we are tax-exempt and will receive the full amount of what you designate to CAm from your plan. You can take advantage of this gift opportunity in the following ways:
Name CAm a beneficiary of your plan. This requires you to update your beneficiary designation form through your plan administrator. Here you can designate Cambridge in America as the primary beneficiary for a percentage or specific amount. You can also make CAm the contingent beneficiary so that we will receive the balance of your plan only if your primary beneficiary doesn't survive you.
With the IRA Charitable Rollover, if you are 70½ years old or older, you can take advantage of a simple way to help Collegiate Cambridge and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity such as Cambridge in America without having to pay income taxes on the money.
Fund a testamentary charitable remainder trust. When you fund a charitable remainder trust with your heavily taxed retirement plan assets, the trust will receive the proceeds of your plan. The trust typically pays income to one or more named beneficiaries for life or for a set term of up to 20 years, after which the remaining assets in the trust would go to Cambridge in America to support your desired area at Cambridge. This gift provides excellent tax and income benefits for you while supporting your family and Collegiate Cambridge.
A donor advised fund. When retirement plan assets pass to your heirs, they can be subject to federal income and estate taxes. This combined income and estate tax burden can be substantial, greatly reducing the value of the intended gift. Instead, you can designate your donor advised fund as the beneficiary of all or a portion of your retirement plan assets. Your fund receives the full amount of the gift and bypasses any federal taxes.