Retirement fund assets can make excellent charitable gifts because of certain tax implications to your non-charitable beneficiaries. Most retirement plans are income tax-deferred, meaning you do not pay income tax on the funds contributed to your plan or on the growth of assets within the fund. However, once you begin receiving payments from the qualified plans, the distributions are taxed. Your beneficiaries are also required to pay the income tax that has not been paid, and the plans are included in your taxable estate.

Charitable organizations like the Center are tax-exempt and are not liable for any unpaid taxes. If you name the Center as a beneficiary of your retirement plan, the full amount of your gift will be used for our fellowship programs.

The simplest way to leave the balance of a retirement account to the Center after your lifetime is to list us as a beneficiary on the beneficiary form provided by your plan administrator. Another way to make a gift of your retirement plan is to create a charitable remainder trust through your will. Upon your death, your retirement assets will be transferred to the trust. There is no tax due, because the charitable remainder trust is a tax-exempt entity. This trust will provide life income to the beneficiary (for example, your child) with an eventual (remainder) gift to the Center. The income beneficiary will pay income tax on the distributions from the trust. Your estate will receive an estate tax charitable deduction for the value of the Center’s right eventually to receive the trust assets. For more information, or for assistance in arranging your gift, please contact us.

IRAs

Thinking of ways to minimize your taxable IRA income? If you are 70 1/2 or older, you may now transfer any amount up to $100,000 from your IRA to CASBS thanks to a new federal tax law. This amount will count towards your required minimum distribution for the year, and it will not be included in your taxable income.

Here's how it works:

• You must be 70 1/2 or older at the time of distribution.
• You may transfer any amount up to $100,000 in 2007.
• This new federal tax law is temporary and does not currently extend beyond 2007.
• Your IRA administrator must make the distribution directly to CASBS at Stanford University.
• Please note: State tax laws vary and may not conform to this new federal law. These distributions will not be deductible as a charitable contribution on your income tax return. Please consult with your tax advisor.

You may use this IRA Distribution Request Form in order to request a distribution from your IRA.