PENSCO Trust - Self Directed IRA | PLANS: IRA program for Charitable Organizations

Charitable IRAs

The PENSCO Trust IRA Program For Charitable Organizations

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 non-profit organization benefit?

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 following demonstrates how this is accomplished:

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 IRAs 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.

IRA currently maintained by a custodian other than PENSCO Trust

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 following demonstrates how this is accomplished:

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 $5,000 ($6,000 if the individual is over 50, 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 an 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).