Plan a Gift from Your IRA

Here is a tax-smart way to make an impact to the David Lynch Foundation using your qualified retirement plan. The IRA charitable rollover (also called the Qualified Charitable Distribution, or QCD) is a great way to make a tax-free gift to the David Lynch Foundation and satisfy your required minimum distribution (RMD).

A gift of retirement plan assets could be right for you if:

• You have an IRA or qualified retirement plan, such as a 401(k) or 403(b).
• You do not expect to use all of your retirement plan assets during your lifetime.
• You have other assets, such as securities and real estate, that you want to pass to heirs.
• You may want to provide payments to loved ones after you are gone.
• You would like to make a bequest gift to the David Lynch Foundation.

Option 1: Make a tax-free gift with an IRA charitable rollover (also called a qualified charitable distribution, or QCD.)

You can make a tax-free gift from your traditional IRA. Such a gift is known as a Qualified Charitable Distribution or QCD. (Other qualified retirement plans such as 401(k)s and 403(b)s are not eligible). You must be at least 70 ½ years old to take advantage of this opportunity. Your QCD must go directly from your IRA administrator to the David Lynch Foundation. The total of all of your QCD gifts in any one year cannot exceed $100,000 per person. A spouse with a separate IRA could also make a QCD of up to $100,000 if they otherwise qualify.

The benefits of a QCD gift include:

1. If you don’t itemize and are not yet required to take your RMD, a QCD offers all of the benefits of an itemized income tax charitable deduction.
2. If you are age 72 and must take your RMD, a QCD can satisfy your RMD without increasing your income taxes.
3. Your gift supports the important work of the David Lynch Foundation with a tax-free gift.

Option 2: Designate remaining retirement plan assets for the David Lynch Foundation.

Another attractive option is to designate the David Lynch Foundation as the recipient of some or all of what’s left in your IRA, 401(k), 403(b), or other qualified plan when they end.

In addition to having the satisfaction of making a significant gift to the David Lynch Foundation, your benefits include:

1. Your estate is entitled to an unlimited estate tax charitable deduction for the value of your IRA donated to the David Lynch Foundation if your estate exceeds the applicable exemption.
2. The QCD is an income tax smart gift. The Secure Act enacted in 2020 prohibits stretching out distributions from an inherited IRA over the life of heirs.
3. Since the David Lynch Foundation is tax-exempt, a gift to the David Lynch Foundation from your IRA is not subject to income taxes.
4. Preservation of non-retirement plan assets for family.

Option 3: Designate remaining retirement plan assets for a life income plan.

Alternatively, you can designate that some or all of the assets remaining when your IRA, 401(k), 403(b), or other qualified plan ends be used to fund a charitable remainder trust or gift annuity arrangement that will make payments to family members or other loved ones for the rest of their lives. When the gift arrangement ends, what is left will go to the David Lynch Foundation.

In addition to having the satisfaction of making a significant gift to the David Lynch Foundation, your benefits include:

1. A charitable trust or annuity can provide lifetime income, since that is no longer possible after adoption of the Secure Act. That law prohibits stretching out distributions from an inherited IRA over the life of heirs.
2. The gift portion of your charitable trust or annuity provides an unlimited estate tax charitable deduction if your estate is subject to estate taxes.
3. Such a plan preserves non-retirement plan assets for family.

Legacy Giving

Deferred Gifts

Gifts by Will or Bequest
Gifts by will allow donors to give in ways they were not able to during life and can take various forms:
A specific bequest directs that the David Lynch Foundation receive a specific piece of property such as real estate, artwork, or jewelry. A general bequest directs that the David Lynch Foundation receive a specified dollar amount.

A general bequest directs that the David Lynch Foundation receive a specific dollar amount.

A residual bequest is used to give all or a portion of whatever remains after all debts, taxes, expenses and all other bequests have been paid.

Your legacy of support will help bring TM to 1 million healthcare workers who suffer from trauma.

The David Lynch Foundation suggests the following language for bequests:

Your attorney may wish to use the following language when making a bequest to the David Lynch Foundation:
“I give, devise, and bequeath David Lynch Foundation, a nonprofit organization with the federal tax id #83-0436453, located at 685 Third Avenue, 17th Floor, New York, NY 10017, the sum of $_______ (or describe the real or personal property or portion of the estate) to be used for general purposes.”

When filling out documents with your legal authority or attorney please provide the following information:

• David Lynch Foundation’s legal name is [The David Lynch Foundation for Consciousness-Based Education and World Peace].
• David Lynch Foundation’s mailing address is: [David Lynch Foundation], Development Office – Planned Gifts, 685 Third Avenue, 17th Floor, New York, NY 10017.
• David Lynch Foundation is a 501(c)(3) corporation. Our tax ID is #83-0436453. Please list “charity” as your relationship to the beneficiary.

Your legacy of support will help bring TM to 1 million veterans who suffer from PTSD.

Irrevocable Life Insurance Trust (ILIT)
An irrevocable life insurance trust (ILIT) is an irrevocable trust created for the principal purpose of owning a life insurance policy. As with any other trust, the insurance trust is a contract between a grantor and a trustee to administer certain property, in this case an insurance contract, for the benefit of named beneficiaries. The insurance trust, like other irrevocable trusts, cannot be rescinded, amended or modified in any way after it is created. Once the grantor contributes property to the trust, he cannot later reclaim ownership of the property or change the terms of the trust. One of the primary reasons for executing a life insurance trust is estate tax considerations. If an ILIT is properly structured, the death benefits paid to the trust will be free from inclusion in the gross estate of the insured. In addition, the ILIT can be structured so that the trust will provide benefits to the insured's surviving spouse without inclusion in the surviving spouse's gross estate.

Many, if not most, people own some form of life insurance because of its unique ability to meet a variety of needs for financial protection. A donor can name the David Lynch Foundation the primary beneficiary or as a successor beneficiary of a life insurance policy. When the proceeds are paid to the David Lynch Foundation, the donor's estate will be allowed a state tax charitable deduction.

Your legacy of support will help bring TM to firefighters and first responders who suffer from trauma.

Gifts of real estate with retained life interest
A gift of a remainder interest in a personal residence, vacation home or farm will provide you with a charitable deduction. What may be more important as a donor is that you can continue to occupy the residence or operate the farm without disruption.

Gifts of retirement benefits
Did you know that retirement plan benefits payable at your death may be subject to both income and estate taxes? If you name the David Lynch Foundation as the beneficiary, the full amount of the retirement benefit will pass free of estate and income taxes. This is a very effective way to leave a significant gift to the David Lynch Foundation.

Charitable lead trusts (CLT)
The charitable lead trust is the reverse of the chartable remainder trust in that it provides for a gift of payments from property to the David Lynch Foundation for a term of years - and then the property passes to whomever you designate.