Roth IRA Conversation Prompts Charitable Giving

When a Birmingham couple recently decided to convert from a traditional IRA to a Roth IRA, they also took the opportunity to offset the income recognition by opening a donor advised fund with the Community Foundation. By donating appreciated stock to establish a fund, this couple achieved their estate planning objectives while also putting structure and focus to their community support.

“We had been aware of the Community Foundation for some time but took this opportunity to get our fund started in a year when the charitable contribution balanced the additional income we were going to see from the conversion,” commented our donor, who wishes to remain anonymous. “A contribution to a donor advised fund also allowed us to retain a right to request that the Foundation make grants from the fund in future years.”

What’s more, the couple has gotten involved in the Community Foundation’s Site Review process, where they add their expertise – informed by years of community involvement – to the due diligence the Foundation performs on grant requests from local nonprofits.

“We have gotten so much more than a tax deduction,” says our donor. “By being part of the Community Foundation and plugging into their deliberate review of community needs and opportunities, our giving goes farther and deeper.”

This is only one example of how a donor has used retirement planning to donate to the Community Foundation. For more information for charitable giving and retirement plan strategies contact Anne Bethea.

Retirement