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A New Tax-Advantaged Option (for Charitable Gift Annuities!)

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Last year, thanks to the generosity of donors past and present, the St. Croix Valley Foundation granted nearly $5 million to nonprofit organizations affecting the quality of life in the Valley and beyond.


Impacts resulting from this grantmaking can often be traced to legacy donors. For donors who make legacy gifts to the St. Croix Valley Foundation as part of their estate planning, such gifts are an expression of their commitment to future generations.


Starting in 2023, legacy donors have a new tax-advantaged option.


A smiling man and woman stand near a river. The man has his arms around the woman's shoulders. It is a bright day with a blue sky and no clouds. The leaves have fallen off the trees in the background on the other side of the river. A green bridge is visible on the left side of the photo.
Roger and Marjorie Hagen enjoy a late autumn day in Stillwater

The "Legacy IRA Act," part of the SECURE Act 2.0, allows donors to use a Qualified Charitable Distribution (QCD) from an IRA to create a Charitable Gift Annuity (CGA). This one-time opportunity for donors 70.5 and older will provide them with annual income as long as they live - with the remainder supporting the charity of their choice.


This opportunity made sense for Roger and Marjorie Hagen, who read about it in an update from their financial advisor. They partnered with the St. Croix Valley Foundation to create a CGA with a QCD that would count towards Roger's required minimum distribution.


This giving option enabled Roger and Marjorie to reduce their current tax liability, ensure annual income for their lifetime, and have the satisfaction of designating the remainder of their gift to two St. Croix Valley Foundation funds close to their hearts - the Stillwater Area Community Foundation Fund and the Environmental Fund.


To learn more about the tax-advantaged giving opportunity the Hagens took advantage of - and to find out if it might be a good fit for you - contact Heather Logelin at hlogelin@scvfoundation.org or 715-386-9490.



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