Charities Push Back Against Roadblocks To Receiving Proceeds

If you advise nonprofits in your practice when a deceased donor leaves individual retirement accounts or brokerage accounts to charities, you may be familiar with the roadblocks that charities that are beneficiaries face while attempting to receive the proceeds from these accounts. Many of these charities are forced to open a new account (for example, an inherited IRA) and complete another set of forms, with more delays, just to liquidate it. 

For charities, the requested documentation to open a new account seems unnecessary and invasive, especially when financial firms demand driver’s licenses, Social Security numbers, net worth, personal income and other private and sensitive information from the charities’ officers or board members. Th…