Become a Member of the Foundation Legacy Society with Your Gift Today Through Planned Giving.

The Foundation Legacy Society honors those who share our commitment to providing a hand up with food, clothing, school supplies, scholarships and more to children who need it most.

As a member of the Legacy Society, you’ll have access to special events and receive updates on our programs. You will also be recognized as an outstanding supporter of children and young people in the community in our newsletter and be part of an alliance with others who share your vision for a better future for these children.

You can leave a lasting legacy with the Foundation in so many ways. Please take a look at all of the options available to you and consider including the Foundation and the important work that we do in your financial plans.

We are proud of the way we spend donor dollars. At the Northwest Federal Credit Union Foundation every penny we receive goes to support programs. The Northwest Federal Credit Union pays all staff salaries and overhead to ensure that we, and you, are giving 100% to the kids!

The material presented in this website is intended as general educational information on the topics discussed herein and should not be interpreted as legal, financial or tax advice. Please seek the specific advice of your tax advisor, attorney, and/or financial planner to discuss the application of these topics to your individual situation.

 

Ways to Make Your Planned Gift

Make a Bequest to the Northwest Federal Credit Union Foundation

A charitable bequest is one of the most flexible and easiest ways that you can leave a gift to the Northwest Federal Credit Union Foundation that will make a lasting impact.

Benefits of a bequest

  • Leave a lasting legacy to charity
  • Receive an estate tax charitable deduction
  • Reduce the burden of taxes on your family

How a bequest works

A bequest is one of the simplest and easiest gifts to make. With the help of an attorney, you can include language in your will or trust specifying a gift to be made to family, friends or the NWFCU Foundation as part of your estate plan, or you can make a bequest using a beneficiary designation form.

Here are some of the ways to leave a bequest to the Northwest Federal Credit Union Foundation

  • Include a bequest to the Northwest Federal Credit Union Foundation in your will or revocable trust
  • Designate the Northwest Federal Credit Union Foundation as a full, partial or contingent beneficiary of your retirement account (IRA, 401(k), 403(b) or pension)
  • Name the Northwest Federal Credit Union Foundation as a beneficiary of your life insurance policy

A bequest may be made in several ways

  • Specific bequest - make a gift of a specific dollar amount or a specific asset
  • Percentage bequest - make a gift of a percentage of your estate
  • Residual bequest - make a gift from the balance or residue of your estate
  • Beneficiary designation of certain assets – Make NWFCU Foundation the designated beneficiary of specific assets

Sample Bequest Language for your will:

Bequest of a Sum Sample Language:
I give the sum of (insert dollar amount) to the Northwest Federal Credit Union Foundation a not-for-profit corporation organized under the laws of the State of Virginia, now having its principal place of business at 220 Spring Street, Suite 220, Herndon, VA 20170

Residuary Bequest Sample Language:
All of the rest, residue and remainder of my property, both real and personal and wheresoever situate, I give, devise and bequeath to the Northwest Federal Credit Union Foundation, a not-for-profit corporation organized under the laws of the State of Virginia, now having its principal place of business at 220 Spring Street, Suite 220, Herndon, VA 20170.

Percentage Bequest Sample Language:
I give all of the rest, residue and remainder of my estate, both real and personal, and wherever situated, which I may own or may be entitled to at the time of my death, all of which property shall be known as my "Residuary Estate", as follow: (percent) to the Northwest Federal Credit Union Foundation, a not-for-profit corporation organized under the laws of the State of Virginia, now having its principal place of business at 220 Spring Street, Suite 220, Herndon, VA 20170.

Restricted Bequest Sample Language:
I give the sum of (insert dollar amount) to the Northwest Federal Credit Union Foundation, a not-for-profit corporation organized under the laws of the State of Virginia, now having its principal place of business at 220 Spring Street, Suite 220, Herndon, VA 20170, to be used for (name of specific project desired).

Contact us

If you have any questions about leaving a bequest to us, please contact us. We would be happy to assist you. If you have been so generous as to include a bequest to the Northwest Federal Credit Union Foundation as part of your estate plan, please take the time to let us know. We would like to recognize you and your family for your generosity.

We are proud of the way we spend donor dollars. At the Northwest Federal Credit Union Foundation every penny we receive goes to support programs. The Northwest Federal Credit Union pays all staff salaries and overhead to ensure that we, and you, are giving 100% to the kids!

Name Northwest Federal Credit Union as a Beneficiary of your Retirement Account or Life Insurance Policy

Naming the Northwest Federal Credit Union Foundation as a beneficiary on your retirement account or life insurance policy is a simple and powerful way to support the life-altering work of our organization without changing your will or living trust. Beneficiary designation gifts pass directly to the NWFCU Foundation without going through the probate process and go right to work to help us provide food, clothing, school supplies, scholarships and more to at-promise children and young people.

Many of our donors name the Northwest Federal Credit Union Foundation as a beneficiary of all or a specified percentage of their IRA, 401(k), 403(b), or other retirement plan.

Individuals who inherit retirement plan assets are usually required to pay income tax on them, so they are often considered among the best assets to leave to charity.

How to name the NWFCU Foundation on your retirement account

Ask your retirement plan administrator or financial institution for a change of beneficiary form. Please list us as:

Legal Name:

Northwest Federal Credit Union Foundation

Address:

220 Spring Street, Suite 220, Herndon, VA 20170

Federal Tax ID #:

20-2945601

Notify us of your beneficiary designation

Please let us know when you’ve made a beneficiary designation for the Northwest Federal Credit Union Foundation so that we can thank you and include you in our Foundation Legacy Society

Request a copy of our legacy brochure. Notify us of your intention.

To learn more, please contact Kaycee Childress, Executive Director at 703-925-5092 or mchildress@nwfcu.org.

We are proud of the way we spend donor dollars. At the Northwest Federal Credit Union Foundation every penny we receive goes to support programs. The Northwest Federal Credit Union pays all staff salaries and overhead to ensure that we, and you, are giving 100% to the kids!

IRA Tax- Free Charitable Rollover

TAKE ADVANTAGE OF THE LAST GREAT TAX BREAK!

Help us help a child with your IRA using the Tax-Free Charitable IRA Rollover

The Tax Cuts and Jobs Act of 2017, lowered some tax rates and doubled the standard deduction for tax-payers. In doing so, it has significantly reduced the number of people who itemize their taxes, and many donors will be unable to use the charitable deduction. There is, however, an extraordinary opportunity to make tax–free charitable gifts from IRAs!

As of 2020 the IRS mandates that you begin taking money out of your IRA at age 72 which increases your taxable income and may even push you into a higher tax bracket. With many deductions being rendered useless, there are few ways to reduce that taxable income. One tax-smart idea is to direct your mandated distribution from your IRA to the Northwest Federal Credit Union Foundation to support at-promise children right here in Northern Virginia. Your gift will not be counted as income. The IRS will consider your required minimum distribution fulfilled and you may save thousands in higher taxes!

There are a few rules to follow to ensure your gift will qualify for the tax-free treatment:

  • You must be 72 years old.
  • The transfer from your IRA must be paid directly from your IRA to the Northwest Federal Credit Union Foundation.
  • The gift cannot exceed $100,000. Married spouses can combine their gifts and contribute $200,000.
  • The gift must be an outright gift.

Who can benefit?

Northwest Federal Credit Union Foundation donors who take Required Minimum Distributions (RMD).

Under this law a donor can use up to $100,000 of their RMD with a direct transfer to Northwest Federal Credit Union Foundation.

Example: John is 72 years old and is required by IRS law to take a $150,000 distribution from his IRA account on which he would pay a tax of approximately $52,500 when considering a 35% federal income tax bracket. He does not need the income as he has plenty of other sources. He is a supporter of the Northwest Federal Credit Union Foundation and after hearing about this provision in the law he asks his IRA administrator to send $100,000 to the Northwest Federal Credit Union Foundation and $50,000 to him. The result is he satisfied the IRS by taking his full required distribution, yet only paid a tax on the $50,000 he directly received. The remaining $100,000 was put to use providing food, warm clothing, school supplies and scholarships for at-promise young people in the Northern Virginia area!

There are now many donors who can no longer itemize their deductions. The new tax law increased the standard deduction and significantly reduced the number of people who itemize. By using the provisions in this law, up to $100,000 per person can be contributed from an IRA account. Gifts from IRA accounts satisfy the IRS rules on Required Minimum Distributions and are not counted as income.

Example: Mary has an adjusted gross income (AGI) of $150,000 and she usually gives $25,000 for charitable causes. She is now 72 and must take her first required minimum distribution of $25,000 from her IRA. Because she no longer itemizes her deductions this $25,000 will push her into an even higher income tax bracket. Mary feels her income is more than sufficient to meet her necessary expenses and to live comfortably. Instead of taking the RMD as additional income she instructs her IRA administrator to make a direct transfer to the NWFCU Foundation of $25,000. By doing so, she was able to satisfy the RMD rules, save money in income taxes and fund five scholarships for at-promise youth to pursue their dreams of a higher education!

If you need further information on how your IRA gift can help the Northwest Federal Credit Union Foundation, please contact Kaycee Childress, Executive Director at 703-925-5092 or email at mchildress@nwfcu.org.

Transfers of IRA gifts to donor advised funds, supporting organizations, charitable gift annuities, or charitable remainder trusts do not qualify.

Check with your advisor about the best ways to take advantage of this tax-saving strategy.

We are proud of the way we spend donor dollars. At the Northwest Federal Credit Union Foundation every penny we receive goes to support programs. The Northwest Federal Credit Union pays all staff salaries and overhead to ensure that we, and you, are giving 100% to the kids!

Other ways to name the NWFCU Foundation as a beneficiary

Bank and Investment Accounts & Commercial Annuities

You can leave a legacy by naming the NWFCU Foundation as a Transfer-on-Death (TOD) or Payable-on-Death (POD) beneficiary on a bank or investment account, or a commercial annuity. Check with your financial institution to see if this option is available to you.

Charitable Remainder Trust

A charitable remainder trust is a separately managed trust that allows you to make a significant gift toward the future of the Northwest Federal Credit Union Foundation’s work, while providing an income for yourself or loved ones. After transferring cash, securities, or other assets to a trust, a trustee invests the assets, and the trust pays income to you or to individuals you name for life, or for a set term of years. When the trust terminates, Northwest Federal Credit Union Foundation receives the remainder.

The trust may be a charitable remainder annuity trust (fixed payments) or a charitable remainder unitrust (fixed percentage).

To learn more, please contact your attorney or accountant.

The above information is not intended as tax or legal advice, and your tax treatment may vary depending on your circumstances. Please consult with your tax advisor.

Charitable Lead Trust

What is a charitable lead trust?

A charitable lead trust allows you to support the work of the Northwest Federal Credit Union Foundation while safeguarding assets for your loved ones. You transfer cash, securities, or other assets to a trust. The trustee invests the assets, providing annual payments to the NWFCU Foundation for a period of time that you select. When the trust terminates, the remaining amount is paid to you or your heirs with the benefit of a reduced transfer tax.

The trust may be a charitable lead annuity (fixed payments) or a charitable lead unitrust (fixed percentage).

What are the benefits of a charitable lead trust?

  • Reduction in transfer tax on the amount passing to your heirs

  • Appreciation in trust value passes to your heirs free of gift and estate tax

  • Control over when your heirs inherit trust assets

To learn more, please contact your attorney or accountant.

We are proud of the way we spend donor dollars. At the Northwest Federal Credit Union Foundation every penny we receive goes to support programs. The Northwest Federal Credit Union pays all staff salaries and overhead to ensure that we, and you are giving 100% to the kids!

If you need further information, please contact Kaycee Childress, Executive Director at 703-925-5092 or email at mchildress@nwfcu.org.