Ideas to Impact Blog

Leave a (Tax-Advantaged) Legacy with an IRA

Not all assets are created equal when it comes to leaving a legacy.

Designating a donor-advised fund (DAF) as a charitable beneficiary of an Individual Retirement Account (IRA) offers a strategic philanthropic advantage: It allows individuals to efficiently channel retirement savings towards charitable causes so retirees can maximize their impact on nonprofits while potentially minimizing tax liabilities. DAFs provide flexibility, permitting donors to allocate funds to various charities over time.

This approach simplifies estate planning, bypassing potentially complex probate processes. It also ensures that a lasting charitable legacy is established, as heirs can continue to support nonprofits through the DAF. This approach combines tax benefits, flexibility, and a lasting charitable impact, making it a compelling choice for savvy philanthropists like Bradley Impact Fund members George and Jill, who told us why they chose the Impact Fund as the charitable beneficiary of their IRA:

“Our main reason for doing this was to avoid creating the burden of the complicated tax process that results from receiving a retirement account as an inheritance. It is not a simple procedure, and it is quite time-consuming for your children at a time when they don’t need a burden on top of the grief of losing a parent. Secondarily, our daughter and her family will receive an ample inheritance outside of my retirement account. And, of course, it’s important for us to support some of our favorite causes following our demise. The Bradley Impact Fund is the perfect solution to facilitate our wishes.”

Before making any distributions from an IRA or other retirement account, be sure to consult your tax advisor concerning how the distribution will affect your own unique circumstances.

If you have any questions or would like to learn more about designating the Bradley Impact Fund as a charitable beneficiary, please contact us at: or (414) 291-2500.

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