Through a Designated Nonadvised Fund you can recommend one or more charities to benefit from grant distributions from the charitable fund on an ongoing basis, and take advantage of qualified charitable distributions (QCDs) to make a gift from your IRA.
- You preselect any charity qualifying as a 501(c)(3) nonprofit organization, as determined by the IRS, to receive grants from the fund.
- Grant distributions may be set up in perpetuity or for a term of years.
- You can name a specific purpose for grant distributions. For example, donors can request grant distributions benefit a certain program within an organization, such as youth or music programs.
- If a charity you recommend loses its tax-exempt status, grants are reallocated among remaining charities. You may name a contingent charity or select one of our collaborative funds to receive grants in the event all of your selected charities cease to qualify.
- Grants can be made in your fund’s name, in honor or memory of a loved one, or anonymously if you choose.
- In order to take advantage of QCDs, you may not maintain any advisory capacity over the fund once it is established (i.e., you may not add or remove selected charities or change the distribution plan).
Gift Minimum: $5,000 per charity named in fund
Example 1:
The Donor: A Wisconsin woman in her 70s, wished to provide permanent support to her church and take advantage of a QCD, since she did not need income from her IRA. But, she was required to take minimum distributions, which put her into a higher tax bracket.
Her Gift: The donor created a Designated Nonadvised Fund and gifted a $100,000 QCD each year for two years into it. Thrivent Charitable now makes annual grant distributions to her church which will continue for the donor’s lifetime, and continue the support long after she’s gone.
Example 2:
The Donor: An Arizona man in his mid-70s, who wished to benefit his favorite charities upon death, and take advantage of QCDs because he was concerned about RMDs increasing his AGI and affecting Medicare premiums and Social Security taxes.
His Gift: The donor created a Designated Nonadvised Fund and gifted an existing life insurance policy he no longer needed for family protection. He now uses QCDs annually to cover the premium payments on the life policy. At his death, the proceeds from the policy will benefit the Designated Nonadvised Fund, which will make grant distributions to his selected charities for 10 years and then close.