Retirement accounts can be a valuable source of charitable giving. Because these assets are often heavily taxed when passed on to heirs (other than a spouse), designating DHS as a beneficiary can be a tax-efficient way to make a significant gift.

You can name Detroit Historical Society as the beneficiary of a life insurance policy. This is a simple way to make a substantial future gift.

A Donor-Advised Fund (DAF) is a flexible and strategic way to support DHS. With a DAF, you make a charitable contribution now—using cash, appreciated securities, or other assets—receive an immediate tax deduction, and then recommend grants to organizations like DHS over time. This approach allows you to “pre-fund” your philanthropy and support DHS whenever it aligns with your personal giving goals. Funds contributed to a DAF can also be invested for potential tax-free growth, which may increase the amount you’re ultimately able to grant. DAFs offer several additional advantages: they help reduce capital gains taxes when donating appreciated assets, remove contributed assets from your taxable estate, and are simpler and less expensive to manage than a private foundation. Many donors also appreciate the option to give anonymously and to name a successor advisor so their support for DHS can continue across generations. To begin, you simply open a DAF through a financial institution or community foundation, make your irrevocable contribution, and then recommend grants to DHS whenever you choose. A DAF can be named as a beneficiary of your IRA account, to be used as a giving vehicle beyond end of life. 

DAF vs. Beneficiary Option
Although designating any qualified charity as a beneficiary usually allows an estate to claim a charitable contribution deduction, utilizing a donor-advised fund program to name a public charity such as DHS as the beneficiary of a tax-deferred retirement account (such as an IRA or a 401(k)) gives clients and heirs greater flexibility.

Upon death, your IRA assets can fund the donor-advised fund. Donations can then be distributed to charities immediately or over time through an endowed giving program. Or you can let a trusted friend or family member make decisions about donations from your donor-advised fund—a designated account successor can make grant recommendations over time to the charities they would like to support.

Individuals age 70 ½ and older can donate up to $100,000 annually from their Individual Retirement Accounts (IRAs) directly to a qualified charity like DHS. These Qualified Charitable Distributions (QCDs) can satisfy your Required Minimum Distributions (RMDs) and are not included in your taxable income. This can be a very tax-effective way to give. Please contact us for more information on how to make a QCD to DHS.

Donating real estate, such as your home, can be a meaningful way to support DHS. Several options exist, including:

• Outright Gift: You can donate your property to DHS.
• Retained Life Estate: You can donate your property to DHS while retaining the right to live there for your lifetime.
• Charitable Remainder Trust: You can transfer your property to a trust that provides income to you or other beneficiaries for a specified period, after which the remaining assets go to DHS.
• Charitable Lead Trust: Income from the trust goes to DHS for a set period, and then the assets are transferred back to you or your beneficiaries.

Each of these options has unique tax implications and benefits. We strongly recommend consulting with your financial advisor and/or legal counsel to determine the best approach for your individual circumstances.