Ways to Leave Your Legacy
Whether you're a retiree thinking about the mark you'll leave or a long-time supporter looking to deepen your commitment, there are simple, tax-smart ways to support your neighbors for years to come.
Bequests
A bequest is a gift you make through your will or living trust. You can designate a specific dollar amount, a particular asset, or a percentage of your estate to go to Love Columbia after your lifetime. It's one of the simplest and most flexible planned gifts, costing nothing today while creating profound future impact.
A charitable bequest may reduce the taxable value of your estate, potentially increasing what your loved ones inherit. If you have retirement accounts or other heavily taxed assets, directing those to charity can maximize your legacy instead of losing a portion to taxes.
Specific Bequest
Leave a specific dollar amount or asset. "I give $____ to Love Columbia, a nonprofit organization in Columbia, MO, Tax ID 20-8801850, to be used for its general charitable purposes."
Residuary Bequest
Leave all or a percentage of the rest of your estate after other bequests. "I give ___% of the rest of my estate to Love Columbia, EIN 20-8801850, for its general charitable purposes."
Contingent Bequest
Name Love Columbia as a backup beneficiary. If your primary beneficiaries don't survive you, that portion goes to Love Columbia. A safety net that ensures your gift is still made.
You don't have to rewrite your entire will to include Love Columbia. A simple clause, prepared with your attorney's help, can add a charitable bequest. We encourage you to let us know if you've included Love Columbia in your plans so we can thank you and welcome you as a Legacy Donor.
IRA Charitable Rollover
If you are age 70½ or older, an IRA charitable rollover (Qualified Charitable Distribution or QCD) is a tax-smart way to give from your Individual Retirement Account. You can transfer funds directly from your IRA to Love Columbia, satisfying part or all of your required minimum distribution while avoiding income tax on the amount donated.
After age 73, you must take required minimum distributions (RMDs) from your traditional IRA each year, which count as taxable income. Donating directly through a QCD counts toward your RMD but is not included in your taxable income. You can give up to $105,000 per year (indexed for inflation) tax-free, whether or not you itemize deductions.
How it works: Contact your IRA custodian and request a direct transfer of funds to Love Columbia. The transfer must go directly to the charity. If you withdraw funds first and then donate, you'll incur income tax. Make sure they include your name and address so we can properly acknowledge your gift.
Example
Mary is 72 and must take an RMD of $10,000 this year. She doesn't need all of it for living expenses. Mary instructs her IRA custodian to directly transfer $10,000 to Love Columbia. This counts toward her RMD but will not be taxed as income. Mary supports neighbors in need tax-free, and her gift immediately furthers our mission.
Even if you aren't eligible for a lifetime IRA rollover, consider naming Love Columbia as a beneficiary of your IRA, 401(k), or other retirement account. This is as simple as updating your account's beneficiary form. When retirement plan assets go to a charity, no taxes are due by anyone, so every dollar goes to work for the people who need it.
Note: QCDs can only be made from traditional IRAs or Roth IRAs, not from 401(k)s or other plans unless you roll those funds into an IRA first. QCDs do not generate a charitable deduction since they are excluded from income, but the tax benefit is achieved through the exclusion.
Donor-Advised Funds
A Donor-Advised Fund (DAF) gives you the flexibility to recommend how much and how often money is granted to charities. Many donors use DAFs with sponsors like Fidelity Charitable, Schwab, or community foundations to conveniently manage their philanthropy.
You can recommend a grant from your DAF to Love Columbia at any time. Simply contact your DAF sponsoring organization (or use their online portal) and request a grant to Love Columbia, Federal Tax ID 20-8801850. You can make one-time or recurring grants, designated for our general mission or a specific program.
Because you already received a tax deduction when you put assets into the DAF, additional grants do not affect your taxes. It's a great way to involve your family in philanthropy, creating a tradition of giving.
Legacy DAF giving: You can also name Love Columbia as a beneficiary of your DAF. Arrange that any funds remaining in your donor-advised account after your lifetime will go to Love Columbia in full or as a percentage. Simply request a beneficiary designation form from your DAF sponsor. You can even name family members as successor advisors for part of the fund and Love Columbia to receive the remaining portion.
Charitable Trusts
For those with larger estates or more complex planning needs, charitable trusts can be an attractive way to fulfill philanthropic goals and achieve personal financial objectives.
Charitable Remainder Trust (CRT)
A CRT is a "life-income" gift. It provides income to you (and/or other beneficiaries) first, and later the remaining assets go to Love Columbia. You irrevocably transfer assets (cash, stocks, real estate) into a trust that pays out income for life or up to 20 years. When the trust term ends, all remaining principal goes to Love Columbia.
CRT Benefits: You receive an immediate income tax deduction for a portion of your gift. If you contribute appreciated assets, the trust can sell them without incurring capital gains tax, meaning the full value can be reinvested to produce income. You get reliable income for life or a term, and whatever remains helps those in need in Columbia.
Charitable Lead Trust (CLT)
A CLT is the inverse of a CRT. Love Columbia receives the income stream first through annual payments for a specified period (5, 10, or 20 years). When that period ends, the remaining principal is returned to you or your heirs.
CLT Benefits: A CLT allows you to make an immediate impact by funding Love Columbia's work each year during the trust term. At the end, whatever is left goes to your heirs with significant tax savings. A properly structured lead trust can reduce or even eliminate estate and gift taxes on the transferred assets.
Charitable trusts are more complex and require help from an attorney to set up. Love Columbia welcomes the opportunity to work with you and your professional advisors to see if a trust aligns with your goals. We can provide illustrations and information upon request.
Gifts of Stock or Securities
If you own appreciated stock or mutual fund shares, donating them directly to Love Columbia can maximize your charitable contribution and tax benefit. When you give securities held for more than one year, you avoid all capital gains tax and can generally deduct the full fair market value as a charitable contribution. A stock gift often costs you less than an equivalent cash gift, yet Love Columbia receives the same value.
Example
John has 100 shares of XYZ Corp that he bought years ago for $1,000 total. Today those shares are worth $5,000. If he sold them, he'd have a $4,000 taxable gain. Instead, John donates the shares directly to Love Columbia. He pays no capital gains tax, and he can claim a charitable deduction for the full $5,000 market value. Love Columbia uses the entire $5,000 to help families in need.
How to Donate Stock
Instruct your broker to transfer shares to Love Columbia's brokerage account using the details below. Then notify us at giving@lovecolumbiamo.org or 573-256-7662 ext. 138 with the stock name and number of shares so we can identify and acknowledge your gift.
Stock Transfer Instructions
Gifts of Real Estate
Donating real estate (a house, vacation property, land, or rental property) can be a transformative gift. If you have property that you no longer want to manage or that has appreciated substantially, a charitable gift could eliminate a hefty capital gains tax bill and provide you with a fair market value tax deduction.
Example
Susan owns a rental house valued at $150,000, which she originally bought for $50,000. If she sold it, she'd face capital gains tax on the $100,000 of appreciation. Instead, Susan donates the property to Love Columbia. She pays no capital gains tax on the transfer and can claim a charitable deduction for the full $150,000 (subject to IRS limits). Susan is relieved of the burden of managing the rental property and is delighted that its value will help her neighbors in need.
How to Donate Real Estate
Contact Us
Reach out to discuss the potential gift. We'll coordinate a due diligence review of the property. This initial conversation does not commit you to anything.
Approval & Appraisal
A qualified appraisal (required by the IRS) establishes the charitable deduction value. We'll guide you on obtaining this and discuss the best way to transfer title.
Transfer the Property
We'll coordinate with you and your advisors to execute the deed transfer. After transfer, we handle the sale. No capital gains tax is owed on any appreciation.
Recognition
We'll issue a gift receipt and, with your permission, recognize your contribution as a member of our Legacy circle, or you can remain anonymous.
Official Information for Your Plans
Provide this to your attorney, IRA custodian, life insurance company, brokerage, or DAF manager to ensure your gift is properly directed.
Let's Plan Your Legacy Together
Whether you want sample bequest language, instructions for a stock transfer, or just to talk through ideas, our Gift Planning team is here to help. All conversations are confidential and without obligation.
The information on this page is not intended as legal or tax advice. Each individual's situation is different. Please consult with your own legal and financial advisors before making any charitable estate planning decisions.