159: Reporter on the Street | Can You Use Retirement Funds to "Invest" In A Nonprofit? With Jeff Beck
About this episode
In this episode, Jess Birken and Jeff Beck discuss the complexities and legalities of using retirement funds to invest in a nonprofit organization.
Do you know someone eyeing their retirement accounts to fund their nonprofit dreams? We need to talk! In this episode, I'm joined by Jeff Beck , a wealth advisor at COE Financial Group , to tackle a listener question that had me equal parts fascinated and horrified. Real Listener Question: "My partner has a traditional IRA with about $100,000 in it. Can she invest that money in my 501(c)(3) without penalties? Do we need to set up a for-profit company for her IRA to invest in first? Are there IRS rules against her investing in something I founded and run?" Jeff and I dig into the mechanics of IRAs, self-directed accounts, and what the IRS actually allows when it comes to retirement funds and charitable giving. Spoiler alert: nonprofits DO NOT have shareholders so you can't "invest" in them and get a return! There are some serious red flags here, both on the legal side AND in this interpersonal relationship. What You'll Learn: Why you can't really "invest" in a nonprofit How giving to a nonprofit can benefit an individual's tax position What a self-directed IRA is and what you get to do with it One legitimate way to donate your IRA funds to a nonprofit tax-free Why getting…
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