This information is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact outcomes.
Why Contribute?
Founded in 1983, the National Council on U.S.-Arab Relations is an American educational, non-profit, and non-governmental organization. The Council is dedicated to improving American knowledge and understanding of the Arab world. The Council's mission is educational. It is committed to building, maintaining, and wherever possible, strengthening and expanding the human, institutional, and programmatic bridges between and among the American and Arab peoples. In particular, it seeks to enhance American awareness and appreciation of the innumerable and multi-faceted benefits that the United States has long obtained and continues to derive from its relations with the Arab world.
Accomplishing this mission requires substantial resources from individuals and families that have benefited from the National Council’s educational programs, projects, events, and activities. An investment at any point in one’s life will make a difference for generations to come. Contributing to the Council is a powerful and meaningful way for one to strengthen the philanthropic legacy of the Council on behalf of our community and the people we seek to serve.
Ways to Contribute
The National Council’s ability to thrive and to continue to be able to offer new generations of Americans educational programs is dependent upon its many loyal friends, alumni, and program participants. Among these individuals are those who donate their time, talent and financial resources to the Council and its mission. The following are suggested ways one can support the Council and make a difference:
Leaving the National Council in One’s Will
A bequest in a will or living trust remains by far the most common method donors use to include charities in their estate plans. Bequests provide the National Council with a source of support that is not subject to fluctuations in the economy. Below are examples of basic ways to leave the National Council in one’s will.
- A fixed amount of money or a designated property:
“I give to the National Council on U.S.-Arab Relations (EIN: 52-1296502), located in Washington, DC, $_________” (or describe the real or personal property, including exact location.)
- A percentage of the estate:
“I give to the National Council on U.S.-Arab Relations (EIN: 52-1296502), located in Washington, DC, ________% of my estate.”
- A residual bequest:
“I give all the residue of my estate, including real and personal property, to the National Council on U.S.-Arab Relations (EIN: 52-1296502), located in Washington, DC
- A double-purpose bequest:
One can provide a relative or friend with income for life through a special gift to the National Council. One can do this by establishing a charitable trust through one’s Will. Upon death, the trust pays income to the person one designates. After that person's death, whatever remains in the trust passes to the Council. If one wishes to have their bequest applied to a specific program, simply add “...for the benefit of (name of program)” to the language suggested above.
Cash
Gifts of cash have an immediate impact on the National Council because it enables the Council to put the funds to immediate use. Checks can be mailed to the National Council on U.S. – Arab Relations, 1730 M Street, NW Suite 503, Washington, DC 20036. Monthly recurring donation options are available on the Council’s website.
IRA
As a provision of the American Taxpayer Relief Act of 2012, the IRA Charitable Rollover was extended through December 31, 2013. The IRA Charitable Rollover allows individuals age 70½ and older to make direct transfers totaling up to $100,000 per year to 501(c)(3) organizations without having to count the transfers as income for federal income tax purposes.
Who qualifies?
Individuals who are age 70½ or older at the time of the contribution. Please note that one must wait until 6 months after their 70th birthday to make the transfer.
How much can I transfer?
$100,000 per year.
From what accounts can I make transfers?
Transfers must come from one’s IRAs directly to the National Council on U.S. – Arab Relations
To what organizations can I make gifts?
Tax exempt organizations that are classified as 501(c)(3) organizations, including the National Council on U.S. – Arab Relations, to which deductible contributions can be made.
What are the tax implications to me?
- Federal – One does not recognize the transfer to the National Council on U.S. – Arab Relations as income, provided it goes directly to the Council from the IRA provider. However, one is not entitled to an income tax charitable deduction for the gift.
- State - Each state has different laws, hence one will need to consult with one’s own advisors. Some states have a state income tax and will include this transfer as income. Within those states, some will allow for a state income tax charitable deduction but others will not. Some other states base their state income tax on the federal income or federal tax paid. Still other states have no income tax.
Does this transfer qualify as my minimum required distribution?
Once one reaches age 70½, one is required to take minimum distributions from one’s retirement plans each year, according to a federal formula. IRA charitable rollovers count toward one’s minimum required distributions for the year.
How does one know if an IRA charitable rollover is right for me?
If one is at least age 70½ and
- One does not need the additional income necessitated by the minimum required distribution, OR
- One’s charitable gifts already equal 50% of one’s adjusted gross income, so one does not benefit from an income tax charitable deduction for additional gifts, OR
- One does not itemize deductions, OR
- One is subject to income tax deduction and exemption phase-outs
What is the procedure to execute an IRA charitable rollover?
To complete an IRA charitable rollover, the first step is to contact one’s IRA provider to learn their procedures.
Gifts of Securities
Stocks are easy-to-value assets that make establishing charitable trusts relatively simple when compared with the transfer of real estate or other hard-to-value assets. An increasing number of donors are making gifts of securities to the National Council, taking advantage of the tax benefits this type of giving allows. These tax benefits include:
- An immediate income tax deduction for a percentage of one’s gift.
- No tax on the sale of stock. Donors considering a contribution of appreciated stock often find that the bypass of capital gains tax is their most important tax benefit. Sometimes thousands of dollars that would have been paid in taxes remain in the trust generating income to the donors and a future benefit to the causes of one’s choice.
- Avoidance of estate tax. Upon the death of the last surviving income beneficiaries, whatever remains in the trust passes free of estate tax to the cause of one’s choice.
Life Insurance
One of the simplest ways to remember the National Council in one’s estate plan is to make it a beneficiary of all or part of an existing life insurance policy. To do so, one can follow these steps:
- Ask one’s insurance agency for a change of beneficiary form.
- Fill it out, naming “National Council on U.S.-Arab Relations (EIN: 52-1296502), located in Washington, DC,” a beneficiary of the policy, either for a percentage or for a specific amount of the proceeds.
- Inform the National Council that the change has been made.
Insurance is considered part of one’s estate and may be subject to estate tax, but not if it is designated for the National Council. Whatever benefit is set aside for the Council will pass from the policy directly to the Council free of estate tax. Filling out a beneficiary designation form is the most common and simplest way to use insurance to benefit a cause of one’s choice. Though this method does not generate a charitable income tax deduction because the donor is free to revoke the designation at any time, it will pass to the Council free of estate tax.
Property
If one has possessions to contribute that have appreciated in value and they have owned them for more than a year, the charitable deduction will be equal to their appraised value at the time they are contributed to the National Council under two conditions: 1) the item is directly related to the Council’s charitable purpose, and, 2) the item is held by the Council after for at least three years and used for the Council’s purposes after the contribution is received. For example, artifacts and/or books contributed to the Council and made part of the Council’s permanent collection are deductible at fair market value at the time of transfer.
This information is not intended as legal or tax advice. For legal or tax advice, please consult an attorney. Figures cited in examples are for hypothetical purposes only and are subject to change. References to estate and income taxes apply to federal taxes only. State income/estate taxes or state law may impact outcomes.