Putting a charity on an account as a beneficiary typically involves designating the charity to receive the assets in that account upon the account holder’s death. This is commonly done with retirement accounts, bank accounts, or life insurance policies. By naming a charity as a beneficiary, the account holder ensures that a portion or all of the account’s funds or benefits will go to the charity as a charitable gift after their passing. It’s a way to support a cause you care about and leave a philanthropic legacy.
Here’s a step-by-step guide on how to do this:
Consult with Professionals: Consider consulting with an attorney or financial advisor to ensure that the beneficiary designations align with your overall estate and financial planning goals.
Contact Your Financial Institution or Plan Administrator: Reach out to the financial institution where your retirement accounts (e.g., IRAs, 401(k)s) and bank accounts (e.g., savings, checking) are held. Inquire about their process for designating charitable beneficiaries.
Gather Account Information: Collect information about your retirement and bank accounts, including account numbers and the names of the financial institutions.
Request Beneficiary Designation Forms: Ask the financial institution or plan administrator to provide you with the necessary beneficiary designation forms for your accounts.
Complete the Beneficiary Designation Forms: Fill out the beneficiary designation forms accurately. Specify “Hope for Haitians” as the charitable beneficiary. Provide the charity’s full legal name, address, and tax identification number (EIN).
Choose Beneficiary Type: Decide whether you want to designate “Hope for Haitians” as the primary beneficiary (first in line to receive assets) or as a contingent beneficiary (receives assets if the primary beneficiary is not available).
Indicate Percentage or Amount: Depending on the account, you may be able to specify a percentage or a fixed amount to be allocated to “Hope for Haitians.”
Revocable or Irrevocable Designation: Understand the difference between revocable (changeable) and irrevocable (requires charity’s approval for changes) beneficiary designations. Choose the appropriate designation based on your preferences.
Review and Sign: Carefully review the completed forms to ensure accuracy. Sign and date the forms as required.
Submit the Forms: Submit the beneficiary designation forms to the financial institution or plan administrator according to their instructions. Keep copies of the completed forms for your records.
Confirm Acknowledgment: Confirm with the financial institution or plan administrator that they have received and processed the beneficiary designation.
Notify the Charity (Optional): While not obligatory, you may want to inform “Hope for Haitians” of your intention to name them as a beneficiary. This can help them prepare for the future gift and express their gratitude for your support.
Simple Language for a Bequest – “I hereby give, devise, and bequeath [amount] and 00/100 dollars to Hope for Haitians located at PO Box 5647, Rockford IL 61125, Federal Tax ID #81-3160296, for Hope for Haitians’ general use and purpose.”