The Surprising Instance Where Cash Isn’t King - City Rescue Mission

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The Surprising Instance Where Cash Isn’t King

Two men went fishing at a nearby pond. They brought poles, bait, and supplies to cook their catch over a fire. The first fisherman quickly caught a big, beautiful fish, but the second man went hours without a single bite. Finally, his bobber disappeared. He reeled in a huge fish… but immediately threw it back.

Bewildered, his friend asked, “Why did you let him go?” The second fisherman replied, “He was nice, but I didn’t bring a pan large enough to cook him!”

It seems silly, but many of us live like the second fisherman – so fixated on a particular outcome or limitation we miss obvious opportunities right in front of us. We want to make big, generous impact in the world, but we don’t think we have the financial means to do it.

In most instances “cash is king,” but when it comes to charitable giving, retirement assets are an often-overlooked “honey hole,” swimming with opportunity just waiting to be caught. Some experts have even called qualified retirement plans “the most significant, yet underutilized category” of all giving options.

When you look beyond liquid assets and cast out into the pond of IRA or retirement assets, you’ll have an opportunity to give in a way that:

  1. Simplifies your giving while providing tax savings. Should you decide to designate retirement assets or IRA proceeds in your will to a charity, you will save on taxes while you give. Your assets will pass directly to us without eligibility of a federal estate tax charitable deduction on the value.
  2. Increases your impact. Donating retirement assets to a charity instead of giving cash means you can give from pre-tax assets and save your cash while your distribution does not count toward taxable income.
  3. Leaves a legacy. When you include a charitable gift in your estate plan to a charity or cause you’re passionate about, it helps to sustain the organization’s future and impact lives. It’s also a beautiful part of the legacy you’ll leave behind.

If you’re looking for a way to maximize generosity and make a splash for generations to come, don’t overlook the value of a gift from your retirement assets.