With tax-efficient advantages and flexibility, making a legacy gift to the Chester County Food Bank can help you make a meaningful impact on your community for generations to come. Here are some asset types you can use to make a current or future gift to help in the fight against hunger:

Donor Advised Funds

A Donor Advised Fund (DAF) is a powerful tool for individuals who wish to leave a lasting legacy by supporting causes like the Chester County Food Bank. Working as a simple, tax efficient investment account, a DAF allows donors to make a charitable contribution, receive an immediate tax deduction, and recommend grants from the fund over time to charities.

Tax Advantage: A DAF allows an individual to lump several years of charitable contributions together to make itemizing their deductions worthwhile even though they can spread those contributions out over a number of years.

Qualified Charitable Distribution

Another option for tax-free giving is available to retirees who designate the Chester County Food Bank as the recipient of the Required Minimum Distribution (RMD) from retirement accounts or IRAs each year. The IRS requires a withdrawal of a portion of your retirement account each year, whether or not you need it for living expenses.

The RMD is considered taxable income. To avoid reporting the RMD as taxable income, a wise and generous idea is to designate these withdrawals (or a portion of them) directly to the Chester County Food Bank. The amount becomes a Qualified Charitable Distribution–a mutually rewarding strategy for giving.

Tax Advantage: Typically, retirement plan balances are subject to both income and estate taxes. But because Chester County Food Bank is a nonprofit, the gift won’t be subject to estate tax.

Donating Stock

Donating appreciated stock directly to Chester County Food Bank offers tax advantages and allows you to make a more substantial contribution without affecting your cash flow. You can give appreciated stock that has gained value over time rather than selling it, paying capital gains tax, and then donating the after-tax proceeds.

Tax Advantage: When you donate stock that has increased in value since you bought it, you can potentially avoid paying capital gains tax on the appreciation. Additionally, you may be eligible for a tax deduction for the full fair market value of the stock at the time of the donation.

Will or Living Trust

By including Chester County Food Bank in your will or living trust, you will leave a lasting legacy that ensures your gift will continue to make a difference in the future. With the flexibility in the type of gift you want to make without the burden of estate taxes, making a gift in your will or living trust is a thoughtful and impactful way to support the fight against hunger.

Tax Benefits: Charitable bequests are generally exempt from estate tax. Your estate could benefit from a charitable deduction for the full value of the gift, potentially reducing the estate’s overall tax burden. (You may change your bequest at any time!)

Ready to Leave a Legacy of Hope?

To name Chester County Food Bank on your beneficiary designation form, please use the following address:

Chester County Food Bank
650 Pennsylvania Drive
Exton, PA 19341
Tax ID #27-0887311

To find the right provisions for your tax situation, please contact your financial representative or tax attorney. For more information on legacy giving, call Jeff Howard, Director of Development at 610-873-6000 x 104 or email give@chestercountyfoodbank.org.

Learn more at Chester County Food Bank.