Estate Giving / Gifts of Stock

Remember the Choroideremia Research Foundation in your estate or with a planned gift to strengthen research efforts to find treatments and a cure so that future generations may never experience vision loss caused by CHM. The planned gifts below should not be taken as financial advice; please consult your personal financial advisor for additional information.

Bequests

A bequest is a gift from your estate or will—a transfer of cash, securities, or other property made through your estate plans. You can make a bequest to the Choroideremia Research Foundation by including language in your will or living trust leaving a portion of your estate to CRF. Bequests can be made for a specific amount, for a percentage of your estate, or for all or a portion of what is left after you have made bequests to your family. To make a gift from your estate, you must sign a new will or living trust instrument, add a codicil to your present will, or make an amendment to your present trust instrument.

Life Insurance

You can designate CRF as a beneficiary of a retirement plan or life insurance policy. To do so, contact the retirement plan administrator or life insurance company and complete the appropriate beneficiary designation form.

Stocks

Make a larger impact by gifting stock and donating long-term appreciated securities, including stock, bonds and mutual funds, directly to CRF. Compared with donating cash, or selling your appreciated securities and contributing the after-tax proceeds, you may potentially increase your gift and tax donation.

 To donate appreciated stock, contact CRF for their brokerage information. Next, instruct your broker to transfer the shares to the charity’s account and keep detailed records, including a receipt. You can then claim a tax deduction for the fair market value of the stock on your tax return. Alternatively, a donor-advised fund (DAF) can be used to receive the stock, providing an immediate tax deduction and allowing you to decide on the charity recipients later.

Step 1: Prepare for the donation

• Choose the right stock: Select stocks you’ve held for over a year that have appreciated in value to maximize your tax deduction. You can only deduct the original purchase price for stocks held less than a year.
• Verify the charity: Ensure the charity is a qualified 501(c)(3) organization and is equipped to accept stock donations.
• Notify the charity: Contact the charity to let them know about your intention to donate stock and ask for their brokerage account details.

Step 2: Initiate the transfer 

• Contact your broker: Instruct your broker to transfer the shares to the charity’s brokerage account.
• Provide details: Give your broker the charity’s name, account number, and DTC (Depository Trust Company) number for electronic transfers.
• Submit forms: Complete any necessary transfer forms provided by your broker.

Step 3: Finalize and claim your deduction

• Document the donation: Keep a record of the transfer, including the date, number of shares, and the fair market value on the date of the transfer.
• Obtain a receipt: Request a receipt or acknowledgement letter from the charity that includes the date, value, and description of the stock.
• Claim the deduction: Report the donation on your tax return, claiming a charitable deduction for the stock’s fair market value on the day of the transfer.

IRA Charitable Contribution

An IRA Charitable Contribution allows you to meet your Required Minimum Distribution (RMD) requirements without adding to your taxable income. This benefits you while supporting the important work of the Choroideremia Research Foundation.

Ask your IRA administrator how best to proceed, because the process can vary from firm to firm.

Qualified Charitable Distribution

Qualified Charitable Distribution (QCD), is a way for individuals aged 70 ½ and older to donate money from their IRA to a qualified charity. This method allows you to meet your Required Minimum Distribution (RMD) without paying income tax on the distribution and is particularly beneficial in light of recent tax code changes that have made it harder for many people to claim charitable deductions. To make a QCD, you must make a complete charitable gift, and the charity must provide a contemporaneous written acknowledgment stating that no goods or services were received in return.

How to make a Qualified Charitable Distribution (QCD)

• Eligibility: You must be age 70 ½ or older at the time of the distribution.
• Source: The donation must come directly from an IRA (traditional, SIMPLE, or SEP).
• Amount: You can contribute up to $100,000 per year (or $200,000 for a married couple, with each spouse taking from their own IRA).
• No Benefits: The gift must be a complete gift. You cannot receive any goods or services in exchange for the donation, such as tickets to a gala or a dinner.
• Documentation: You must receive a written acknowledgment from the charity stating that no goods or services were provided.

Tax benefits and implications

• Tax-Free Distribution: A QCD is not considered taxable income, which can lower your Adjusted Gross Income (AGI).
• Meets RMD: The distribution can be used to satisfy your annual Required Minimum Distribution.
• No Itemization Needed: You do not need to be an itemizing taxpayer to use a QCD.
• Reporting on Taxes: The full distribution amount will be reported on your Form 1099-R. On your Form 1040, enter the full amount in box 4a and the taxable amount (which is zero for a QCD) in box 4b, and write “QCD” next to box 4b.

For more information on making a bequest, gift of stock, gift of life insurance or IRA, please contact Kathi Wagner, CRF’s Executive Director, by email or (800) 210-0233, Ext 5.