FREQUENTLY ASKED QUESTIONS
What assets can I use to make a gift?
Generally speaking, during your lifetime you can make an outright gift of cash, securities or other property (e.g. real estate, personal property). You can also make outright gifts at your death through your will, trust or through a beneficiary designation for a retirement plan or life insurance policy. In any event, your gift can be designated in accordance with your wishes.
What sort of gift plans also return income to me?
You have the option of making a gift that returns income to you, your spouse, or other individuals, such as a charitable gift annuity, or a charitable remainder unitrust or annuity trust.
What tax deduction will I receive for my gift?
Your tax benefits will depend on several factors: the type of gift, the time at which it is made, whether it is outright or deferred or has any income payments. In general, though, here are some guidelines:
- Outright gifts generate a full income-tax charitable deduction. Outright gifts of appreciated securities are deductible at fair market value, with no recognition of capital gains- a great tax benefit!
- Bequests do not generate a lifetime income tax deduction. They are exempt from estate tax.
- Similarly, life insurance distributions are not income-tax deductible, but are exempt from estate tax. If you have made us the irrevocable owner and beneficiary of a policy during your lifetime, the gift of the policy may generate an income tax deduction and you may deduct annual gifts that offset premium payments we make on the policy.
- The charitable deduction for a gift that returns income to you, such as a charitable gift annuity or a charitable remainder trust, is the fair market value of the gift asset minus the present value of the income interest you retain.
I want to set up a life insurance policy, name Ronald McDonald House Charities of Kansas City, Inc. as beneficiary, but retain ownership of the policy. Can I deduct the premium payments I make?
No. the IRS would not consider that a ‘completed gift’- they’d say that, as the owner of the policy, you could change the beneficiary designation to a friend or family member. We must be made the irrevocable owner of policy if gifts offsetting premium payments are to be deductible.
I’ve heard that transferring gifts of IRA assets to a charity is advantageous. Why?
Qualified retirement plans such as IRAs, 401(k), 403 (b), and Keoghs allow individuals to defer paying taxes on a portion of their income until the assets are withdrawn during retirement years. However, after a person’s death, these accounts are often exposed to income and estate taxes, at a combined rate that could rise to 75% or even higher on large taxable estates. The tax will be paid at some point-by your estate and your heirs unless contributed to charity. In other words, by giving retirement assets to charity you receive double benefits. Your estate and heirs will not be taxed on the portion that goes to charity and you will support Ronald McDonald House Charities of Kansas City, Inc. in a tax efficient way.
I’d like to donate a painting. Will you determine its value for my income tax deduction?
The IRS requires that donors of artwork and collectibles secure an independent qualified appraisal of the items to establish fair market value. The appraisal has to be related to the gift – an insurance appraisal won’t suffice.
I’m interested in establishing a charitable gift annuity. What financial provisions will you make for the income payments to me and my spouse?
Your charitable gift annuity will be treated as a general obligation of Ronald McDonald House Charities of Kansas City, Inc., backed by all of our assets.
If I create a bequest or life-income gift, will you continue to ask me for annual contributions?
Your planned gift is a significant addition to our long-term financial strength and our ability to meet the challenges and opportunities the future will bring. However, today’s efforts are supported through annual gifts and we greatly appreciate and encourage any annual support you may want to consider.
What is the Federal tax identification for Ronald McDonald House Charities of Kansas City, Inc.?
The federal tax identification number is 43-1190760.
Can Ronald McDonald House Charities of Kansas City, Inc. serve as Executor for an estate?
Ronald McDonald House Charities of Kansas City, Inc. cannot serve as Executor for any estate due to potential liability and conflict of interest issues.
What are the ways in which a donor can designate their gift to Ronald McDonald House Charities of Kansas City, Inc. through their will?
A donor can bequeath a sum certain or a percentage of their estate for either specific or general purposes.
How can I notify Ronald McDonald House Charities of Kansas City, Inc. about an estate gift?
You can contact Ronald McDonald House Charities of Kansas, Inc. directly.
Ronald McDonald House Charities of Kansas City, Inc.
2502 Cherry Street
816-842-8321, ext. 135
Who can answer the bequest and legacy questions of an executor/trustee?
Please direct inquiries to Tami Greenberg at 816-842-8321, ext. 135, or firstname.lastname@example.org.
Are Ronald McDonald House Charities of Kansas City, Inc. and the Ronald McDonald House Charities separate legal entities?
Yes. Ronald McDonald House Charities of Kansas City, Inc. is a chapter of Ronald McDonald House Charities and is a separate legal entity.