The Piedmont Beautification Foundation (PBF) recently received a remarkable six-figure bequest from a donor’s IRA. This gift highlights the advantages of designating a charitable organization as a retirement-fund beneficiary.
Ordinarily, distributions from an IRA are treated as taxable income to the account owner. After the owner’s death, final distributions may be taxed twice — first as income to the beneficiary and again as part of the estate. By designating that a portion of their IRA be distributed directly to PBF, a 501(c)(3) nonprofit, our generous donor avoided both forms of taxation, ensuring that the full value of their gift could be used to support the efforts of PBF.
Although the donor left no instructions for the use of their bequest, PBF Trustees carefully reviewed the donor’s giving history and considered PBF’s relevant financial circumstances. The Trustees voted to allocate 50% to the Endowment Fund, helping to prepare for future needs, and 50% to the General Fund, making resources available for immediate use.
At its September meeting, the Trustees also adopted a formal policy for future bequests. When a donor specifies that a gift should support a particular project, PBF will honor that request whenever feasible. If no preference is indicated, the Trustees will determine the allocation after considering all relevant factors, including the donor’s giving history. Similarly, if no direction is given regarding publicity, the Trustees will use their best judgment in deciding whether and how to share the news.
Currently, PBF is advancing two major campaigns—Reforest Piedmont and the Dearing Memorial—while maintaining two endowment funds: the General Endowment and the Sports Facilities Endowment.
At the same September meeting, after polling all Trustees and Advisors, the Trustees voted to support a major renovation of the Piedmont Park Play Area, including new swings and safety matting. This project will be featured in PBF’s fall brochure and follows closely on the heels of PBF’s support of the Beach Tot Lot, where work is about to begin. Learn more HERE.
With all of these projects underway, PBF welcomes both current gifts and future bequests with deep gratitude. Contributions may be mailed to:
Piedmont Beautification Foundation
City Hall, 120 Vista Ave.
Piedmont, CA 94611