I recently had a discussion with a Takodian who attended camp in the 1960s and into the 1970s. As a result of his experiences, he is a major supporter of the important work the Takodah Y – and especially Camp Takodah – does for today’s youth. The purpose of this article is to educate you about some of the ways this individual provides his financial support. But first, we want to set the stage by sharing a little about this Takodian’s experiences. This individual would also prefer to remain anonymous so for the purpose of this article we will refer to him as only “Frank.”
Frank was a camper, LIT, and Leader for nine summers between 1960 and 1971. He quickly came to understand how Camp Takodah had an extremely positive impact on a great many young people and how Uncle Oscar Elwell, in particular, dedicated his life to Takodah. His position was not just a job to him, it was a mission. That example of leadership and commitment struck a deep chord with Frank and the feeling never faded. Today, Camp continues in the traditions put in place during the Elwell era and Frank is committed to supporting Takodah as much as possible so that the mission can continue.
Every year, Frank provides a sizeable donation with the only stipulation that we use some of his contributions to send three to five boys to camp who otherwise would not be able to afford to do so. Any remaining funds go towards whatever Camp needs in whatever way we need it. There’s no doubt about it: this Takodian’s donations make a BIG difference.
“I can’t think of a better thing to do with my money,” he says because he knows the life-changing effect his money makes on the lives of the newest CT holders to join our global family.
Let’s explore how this all works. First, however, it’s important to understand that these ideas are applicable to Frank’s financial situation and yours may be different, so please be sure to consult your financial or tax advisor.
Over the past few years, Frank’s financial advisor and his tax accountant have come up with some suggestions for solving some tax liability issues by increasing support for Camp Takodah beyond the most commonly known method of simple cash donations.
- Direct transfer of funds from a Traditional IRA. If you are old enough to take funds from your IRA account, that money is taxable. And, at a certain point, you are required to take an annual distribution (the Required Minimum Distribution) which is taxable. However, you can transfer funds directly from your IRA to Camp Takodah and that distribution is not reported as income, so you have no tax liability.
- Donate appreciated assets with long-term capital gains. Frank had some highly appreciated securities in an investment account that his financial advisor recommended he sell, but the capital gains tax would be very high. However, he can transfer the appreciated securities directly to Camp Takodah without being subject to the capital gains tax. And, he can deduct the value of the securities as a donation, subject to any limitations in the tax codes.
- Direct cash donation. This method of support may be subject to tax code limitations and is not as beneficial from a tax standpoint as the above two methods.
- Donations of property. You can also donate physical property such as a car, a boat, a piece of land, etc. and Camp Takodah can then sell that property for cash.
Friends, there are many other ways to give so you, too, can have a lasting impact on the lives of the children we serve. Please consider talking to a financial advisor to find mutually beneficial options that work for your wealth management portfolio. We’re here to help with advice and options as well. It’s important to remember that every dollar makes a difference.
“No one stands taller than when we stoop to help a child,” wrote Carol Sue Rhoades for a poem that was shared in an edition of the Takodah Whispers from 1960.
Artie Lang, our Executive Director, is always available to answer your questions and talk with you about giving options. You are invited to contact him at 603-352-0447 or firstname.lastname@example.org.