Stocks, IRAs, and Donor Advised Funds

GIVING STOCK OR APPRECIATED PROPERTY

Appreciated assets, such as stocks that have been held longer than one year and have appreciated in value, may be donated to KMFA Classical 89.5 and may provide you with tax savings. KMFA Classical 89.5 is a 501(c)(3) nonprofit tax-exempt organization, Federal Tax ID 74-6076827, and licensed to Capitol Broadcasting Association, Inc. as a public service, community funded station.

When you give appreciated assets, you avoid paying capital-gains tax on the increased value of your stock. You may also be entitled to a charitable deduction based on the stock's current value. Contributing stock is a great way to support KMFA.

When considering gifts of stock, we recommend you consult with your financial advisor.

Your broker will need the following information:

FROST BROKERAGE SERVICES

Contact:
Rickey F. Franklin
Centralized Associate Advisor | Frost Brokerage Services, Inc.
Frost – Banking, Investments, Insurance
100 West Houston Street, San Antonio, TX  78205
Office: (210) 220-6646 | 800-292-1292 | Fax: (210) 220-4760
Rickey.Franklin@frostbank.com | www.frostbank.com

DTC ROUTING INSTRUCTIONS

National Financial Services
DTC Number: 0226
Account Number: 037-287520
Account Name: Capitol Broadcasting Assn., Inc. dba KMFA Classical 89.5
Federal Tax ID: 74-6076827

Please alert KMFA directly of your pending stock donation (including the company and number of shares) so that we can credit your gift in a timely and accurate manner. To ensure proper gift identification, please call David Hammond at 512-615-6903 or send an email to dhammond@kmfa.org.

GIVING FROM YOUR INDIVIDUAL RETIREMENT ACCOUNT (IRA)

There’s a special way to support KMFA’s Dear Music Campaign if you are age 70 ½ or older through a Qualified Charitable Distribution (QCD) from your Individual Retirement Account (IRA). The IRA Charitable Rollover was first enacted as part of the Pension Protection Act of 2006 and permanently extended in the Protecting Americans from Tax Hikes Act of 2015. Now, you can make a charitable gift directly from your IRA while excluding the amount of that gift from your adjusted gross income (AGI). The CARES Act suspended the requirement for required minimum distributions in 2020. Despite the RMD suspension, if you are 70 ½ or older you may be able to transfer funds from your IRA to KMFA without paying any federal income tax.

Please direct your financial advisor or IRA custodian to make checks payable to KMFA and mail to:

Capitol Broadcasting Association, Inc. – KMFA Classical 89.5
PO Box 6200
Austin, TX 78762

KMFA’s Tax ID is 74-6076827 (Capitol Broadcasting Association, Inc.)

Please include your name and address with your gift so we can send you a tax receipt. Please direct questions to David Hammond 512-615-6903 or dhammond@kmfa.org.

ADVANTAGES TO YOU:
  • You can use an often-overlooked asset to make a gift to KMFA.

  • The IRA Charitable Rollover permits you to make donations directly to charitable organizations such as KMFA from your IRA without counting the distribution as part of your AGI and, consequently, without paying taxes on it.

  • You don’t recognize the distribution as income for federal income tax purposes.

  • The distribution counts towards your minimum required distribution for the year.

TO QUALIFY:
  • You must be 70-1/2 or older and required to take an annual distribution from your IRA.

  • Your total combined charitable IRA rollover contribution cannot exceed $100,000 in any one year. (Married couples may be able to contribute up to $200,000.)

  • Charitable contributions from an IRA must go directly to a public charity that is not a supporting organization. Contributions to donor-advised funds and private foundations, except in narrow circumstances, do not qualify for tax-free IRA rollover contributions.

  • Distributions can only be made from traditional Individual Retirement Accounts or Roth IRAs. Charitable donations from 403(b) plans, 401(k) plans, pension plans, and other retirement plans are ineligible for the tax-free treatment. Distribution must be made directly from the IRA trustee payable to KMFA or another qualifying non-profit.

  • Qualified charitable distributions from IRAs are not eligible for tangible benefits. You may still receive name recognition in KMFA’s new home.

  • You must receive an acknowledgement from KMFA or other charity for each rollover contribution.

We recommend that you seek advice from your accountant prior to making a charitable rollover as personal circumstances can have a significant impact on whether charitable rollovers are advantageous. In order to benefit from a 2020-eligible IRA contribution, plan to contact your IRA administrator as soon as possible as some administrators may place a deadline on requesting transfers.

KMFA Classical 89.5 is a nonprofit 501(c)(3) tax-exempt organization, Federal Tax ID 74-6076827, and licensed to Capitol Broadcasting Association, Inc. as a public service, community funded station.

GIVING THROUGH YOUR DONOR ADVISED FUND (DAF)

Please consider recommending KMFA as an organization to support through your donor advised fund.

If you have a donor advised fund with Fidelity Charitable, Schwab Charitable, or BNY Mellon, you can make your grant recommendation to KMFA through the DAF Direct online form. If your donor advised fund is not listed there, please contact your adviser at your DAF sponsoring organization directly to make your recommendation.

If you do not wish to make your DAF grant recommendation via DAF Direct, please direct your DAF sponsoring organization to make checks payable to KMFA and mail to:

Capitol Broadcasting Association, Inc. – KMFA Classical 89.5
PO Box 6200
Austin, TX 78762

KMFA’s Tax ID is 74-6076827 (Capitol Broadcasting Association, Inc.)

For more information, please contact David Hammond, Director of Development at 512-615-6903 or dhammond@kmfa.org.

WHAT IS A DONOR ADVISED FUND?

A donor advised fund (DAF) allows you to combine the most favorable tax benefits with the flexibility to easily support KMFA and other public charities through cash, appreciated securities, and other assets. DAFs allow you to make a charitable contribution, receive an immediate tax deduction, and then recommend grants from your DAF account over time to the nonprofits you wish to support. Please note that KMFA does not provide tax or legal advice. Speak with your professional tax or legal advisor with questions about donor advised funds and gifts to KMFA.