A Tax-Saving Way to Support FWCC

Gathering of Friends from the 2025 Section Meeting

If you are 70½ years old or older, you can take advantage of a simple way to support FWCC and reduce your taxable income at the same time, even if you don’t itemize your deductions on your tax return.

At the end of 2015, legislation was enacted making the “IRA Charitable Rollover” a permanent gift option. With this strategy you can give to FWCC or other qualified charities directly from your IRA without having to pay income tax on the distribution. This is especially important now that the standard deduction has doubled, since many older taxpayers will no longer benefit from itemizing their deductions, including charitable contributions.

If you have not taken your required minimum distribution for the year, an IRA charitable rollover gift can satisfy all or part of that requirement. You can designate the distribution to one organization or split it between several, and these transfers generate neither taxable income nor a tax deduction, so you realize a tax benefit even if you are using the standard deduction.

One catch: to make an IRA charitable rollover gift you must be at least 70 ½, and you must arrange with your IRA custodian or financial institution to make the gift directly to FWCC or another charity—you cannot first take the distribution from your IRA and then distribute the proceeds yourself. If you are interested in knowing more and/or would like to take advantage of this strategy for giving to FWCC, please contact Robin Mohr at robinm@fwccamericas.org to discuss the simple steps involved.

How a Gift Annuity Can Benefit You and FWCC

Many Friends have expressed a desire to increase their financial support of FWCC but are uncertain whether they can afford to make a large gift. A gift annuity through the Mennonite Foundation or Friends Fiduciary Corporation is a great way to help the FWCC Section of the Americas while also securing your own financial future. It’s a gift that provides you with payments for life and frees you from managing funds that you intend to eventually give away. FWCC uses Friends Fiduciary Corporation and the Mennonite Foundation to administer these kinds of planned charitable gifts.

Here’s how a gift annuity works:

You make a gift to the Mennonite Foundation or Friends Fiduciary Corporation designated for FWCC.  You can give cash or marketable securities, including highly appreciated stock. In return, you receive fixed payments for the rest of your life. You can choose to receive the payments for your own lifetime, jointly with your spouse, or even name someone else to receive the payments. The amount you receive depends on your age when you make the gift, and also when you begin the income stream. For example, a 70-year-old would receive payments of 5.6% of the gift amount each year. You receive an immediate charitable income tax deduction for a portion of your gift, and then part of each of your annuity payments is tax free—until you reach your projected life expectancy.

Here’s how it benefits FWCC:

FWCC is delighted to receive funds through a gift annuity. We receive the part of your gift that is left after your death. Gift annuities allow us to anticipate future donations and plan accordingly. After ensuring your financial future, your gift continues as a legacy that ensures our future.

How to learn more:

We’re here to help you decide whether this is a giving strategy that is right for you. We’ll show you exactly what annuity rate and tax savings you would receive if you give a gift, and help you understand what planned giving strategy might benefit you the most.

To request a gift annuity application or for more information, contact:

Robin Mohr of Friends World Committee for Consultation at (215) 241-7157

Gift Annuities Fact Sheet