As the giving season nears, the Topeka Community Foundation has a few tips for charitable giving that go beyond a cash donation. Investments, retirement accounts, life insurance policies, and estate assets can play an important role in charitable planning. By working with a community foundation, donors can turn these assets into meaningful support for the organizations and causes they care about while also coordinating their philanthropy with broader financial and estate-planning goals.
Build your fund’s impact with a variety of non-cash gift types:
1. Publicly Traded Stocks
If you own publicly traded stock that has increased significantly in value, consider donating the shares rather than selling them and donating the cash. Generally, the charitable contribution of property, including securities, is recognized by the IRS and donors avoid the capital gains penalty by donating the shares directly.
The Topeka Community Foundation can make this strategy especially convenient. Instead of finding nonprofits that are equipped to accept this type of asset, a donor may be able to transfer shares directly to a fund, using the resulting dollars to support multiple organizations according to Foundation spending policies.
2. IRA – Required Minimum Distribution
A Qualified Charitable Distribution (QCD) is an excellent way to turn a Required Minimum Distribution from an IRA into lasting impact for the community. A QCD from an IRA can count toward the RMD while generally excluding the QCD amount from taxable income. The QCD limit per taxpayer is $111,000 in 2026. However, QCDs cannot be made to donor-advised funds. The Foundation manages other types of funds that qualify.
3. Life Insurance Beneficiary Designation
Life insurance is purchased to protect the people we love. But as circumstances change, the need for those funds evolves. Donors may want to consider whether life insurance has a place in their charitable plan. Depending on the policy, a community foundation or charitable fund can be named as the full or partial beneficiary of a life insurance policy.
4. Estate Planning
A charitable gift can be established through a will or trust, or through beneficiary designations of certain retirement accounts or policies. The Foundation works with donors and their advisors to document charitable intentions ahead of time, helping ensure that a future gift reflects the donor's values and priorities. Estate gifts are remarkably flexible and may even be simple to update during the donor’s lifetime.
Most importantly: Start now.
Whether you’re planning your year-end giving or looking ahead to your options in the coming years, now is the time to start the conversation.
The Topeka Community Foundation can help you explore the possibilities and work alongside your professional advisors to develop a giving strategy that connects your assets with your philanthropic values.
