Beneficiary Designation
Why a Beneficiary Designation?
- Takes effect only at death — no impact on your finances today
- Completely revocable and updatable at any time
- Passes outside of probate — fast and private
- Can be split among multiple beneficiaries
- Retirement accounts pass to charity income-tax-free
What is a Beneficiary Designation Gift?
When you open a retirement account, life insurance policy, or bank account, you are asked to name a beneficiary — the person or organization who will receive the assets when you pass away. You can name Greater Salina Community Foundation as a full or partial beneficiary of any of these accounts.
These gifts pass outside of your will and outside of probate, meaning they transfer quickly, privately, and directly to the charity.
| Account Type | Notes |
| IRA/401(k)/403(b) | Retirement accounts are among the most tax-efficient assets to leave to charity. Your heirs would owe income tax on these funds, but as a public charity, the Community Foundation would not. |
| Life Insurance Policy | Name the Community Foundation as a contingent beneficiary of an existing or new policy |
| Bank or Brokerage Accounts | Use a Payable-on-Death (POD) or Transfer-on-Death (TOD) designation |
| Donor Advised Fund (DAF) | Name the Community Foundation as a successor beneficiary of your DAF account |
| Annuities | Commercial annuities can also carry beneficiary designations |
Why Retirement Accounts are Especially Powerful
Retirement accounts such as IRAs and 401(k)s are often the most tax-efficient asset to leave to charity. Here's why:
- When an individual heir inherits a retirement account, they generally must pay ordinary income tax on every dollar withdrawn
- When a charity inherits the same account, no income tax is owed — the full amount goes to work for the mission
- Meanwhile, you can leave tax-free assets (such as appreciated stock or a home with a stepped-up basis) to your family
This simple strategy can maximize the value of your estate for both your heirs and the causes you love.
How to Make This Gift
- Contact your retirement plan administrator, insurance company, or financial institution.
- Request a beneficiary designation change form
- Name: Greater Salina Community Foundation, Tax ID: EIN
- Indicate the percentage you wish to designate
- Return the completed form to your institution
It's that simple. No attorney needed.
Let Us Know
If you've already named the Greater Salina Community Foundation as a beneficiary or are considering it, we'd love to hear from you. There are no obligations, and your gift intention will be held in the strictest confidence.
Contact Michael Chambers, VP of Community Impact at 785-823-1800 or michaelchambers@gscf.org.
Greater Salina Community Foundation does not provide legal or tax advice. Please consult your financial advisor or estate planning attorney with any questions.
