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Offering FUND RAISING OPPORTUNITIES from IRA Accounts
PENSCO Trust is a leader in administrating investment opportunities for IRA account
holders who want to assist charities with short and long term
financial needs. Specifically, we are aware of several
ways in which IRA account holders can direct their IRA
assets to the charity of their choice.
How can a charity, association, ministry, school or other
such non-profit organization benefit?
- By offering an IRA investment vehicle such as private stock,
notes, bonds, partnerships, real estate, etc.
- By
accepting contributions funded by IRA
distributions;
- By
having IRA account holders name the charity as
their full or partial death beneficiary.
How is it done?
- The
charity or non-profit organization sponsors/promotes a
self-directed IRA with PENSCO Trust as custodian.
- IRA
account holders are free to invest their IRA
funds in any IRA permitted asset including those
investment vehicles made available by the
charity.
What are the options available to the charity and the IRA account holder?
- The
charity establishes an IRA investment vehicle, to
help fund a charity goal (for example, building
schools or establishing new ministries). The
investment vehicle may be in any of a number of
different forms, such as a bond or loan, which
pays a fixed interest rate, or an equity interest
in a limited liability company, a limited
partnership, or corporate entity. The charity
will set the investment terms and conditions, such as the duration or minimum investment amount. The IRA account holders then direct PENSCO Trust to fund the charity’s investment vehicle.
- All
or part of an existing IRA’s investments
could be transferred to
PENSCO Trust to enable the IRA account holder to pursue
one or more of the following options:
- Direct
PENSCO Trust to invest their IRA with assets
made available by the charity;
- Retain
annual dividend/interest in the IRA
account;
- Arrange
for minimum distributions from the IRA to
fund tax-deductible contributions to the
organization. (PENSCO Trust will supply the
individual with a Form 1099R for the
distribution and an annual statement for
the total contributions to the charity);
and/or
- Designate
the charity as a death beneficiary of the
IRA.
Please
note IRA account holders may choose to participate in as
many options that they so desire.
What
if the IRA is currently maintained with a custodian other
than PENSCO Trust?
- All
or part of the existing IRA would be transferred
tax-free to PENSCO Trust to enable the IRA account
holder to pursue one or more of the above
options.
- The
member can make an annual investment in their
charity’s investment vehicle, by
transferring earnings from other IRA investments
(tax-free).
Can a charity member establish a new IRA with PENSCO Trust?
- The
member (or any other individual) can establish a
new Traditional, Rollover or Roth IRA account
with PENSCO Trust.
- The
member (or any other individual) can make an
annual contribution of up to $4,000 ($5,000 if the individual is over 50 and $8,000 for a
husband and wife filing jointly), a portion or
all of which may be tax-deductible, depending on
the type of IRA and other factors.
Additional benefits:
IRA
account holders have the ability to make charitable
contributions through their IRAs. In helping the charity
of their choice by making income-producing investment,
they can access assets not previously considered usable
for this purpose and which are more readily available
than disposable income.
The
IRA account holder may pay custodial fees outside of
their IRA and may be able to claim a tax deduction for
the fee.
PENSCO Trust and the charity have no other relationship (for example,
they cannot compensate each other).
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