Giving from an inheritance: tithes, memorial gifts and funding research

Short answer

Decide how much you want to give, such as a 10% tithe, then choose the cause and how to give. Giving inherited investments directly, giving from an inherited IRA once you're 70½, or setting up a donor-advised fund can all cut the tax cost. To honor someone who died of an illness, you can fund research on that disease, start a fund in their name, or ask for memorial gifts in their obituary.

First, there's no rush

If you're here after losing someone, we're sorry. Grief and money decisions don't mix well, and many advisers suggest waiting a while before making large ones. Your gift will do just as much good in six months or a year.

There's one exception. If the will or account form names a charity as the next beneficiary after you, you can disclaim (formally refuse) part of your inheritance so it passes to that charity, but only within 9 months of the death and before you've accepted the money. See ways to give.

Tax-smart ways to give from an inheritance

Inheriting money usually isn't taxable income for you. The exceptions are retirement accounts such as IRAs and 401(k)s, and five states (Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania) that tax some heirs. How you give can still make a real difference to the tax cost.

Way to give	Why it helps	Good to know
Give inherited investments directly	Inherited stocks and funds get a new tax basis at the date of death. If they've grown since, giving the shares directly avoids capital gains tax on the growth, and you can deduct their full value.	Inherited property counts as held long-term, so the full-value deduction applies right away if you itemize.
Give from an inherited IRA (age 70½+)	A qualified charitable distribution sends money straight from the IRA to a charity, tax-free, and counts toward required withdrawals.	Up to $111,000 per person in 2026. It can't go to a donor-advised fund. Under 70½, IRA withdrawals are taxable, so giving from other assets may be cheaper.
Disclaim, when a charity is next in line	The money goes to the charity as if you'd died first, so it's never your income, and the estate gets the charitable deduction.	Must be in writing, within 9 months of the death, before you accept any of it. You can't choose who receives it; the will or account form decides. Ask an estate attorney.
Open a donor-advised fund	Deposit part of your inheritance now, take the deduction this year, and recommend grants over time while you decide.	You can name the fund, for example after the person you lost. Gifts to these funds don't count toward the 2026 deduction for non-itemizers.
Give cash	Simple, and any charity can accept it.	From 2026, non-itemizers can deduct up to $1,000 ($2,000 for joint filers) of cash gifts. Itemizers can deduct gifts above 0.5% of their income.

General information, not tax advice. Rules depend on your situation, so check with a tax professional before a large gift. Sources: Congressional Research Service (qualified charitable distributions), 26 U.S.C. §2518 (disclaimers), Taft (2026 deduction rules).

In their memory

Fund research on the disease that took them

After losing someone to cancer, ALS, Alzheimer's, a rare disease or addiction, many families want to help the next family facing it. Research funding is one of the most lasting ways to do that, and a well-chosen gift can go much further than a hurried one.

How to choose a research charity

Check that it funds research. Some disease charities mainly fund awareness or patient services, which matter but aren't research. Its annual report or Form 990 shows how much goes out as research grants. You can look up any charity's Form 990 on ProPublica's Nonprofit Explorer.
Look for expert review. Good research funders pick projects through scientific advisory boards or peer review, and publish what they fund.
Consider neglected diseases. A dollar can matter more where research funding is scarce. Patient-led foundations for rare diseases often fund the patient registries, tissue banks and early trials that draw in larger funders.
Look for a track record. The Cystic Fibrosis Foundation invested about $150 million in the research behind breakthrough CF drugs, then sold its royalty rights for $3.3 billion to fund more of its mission (Scientific American).
Ask where your gift goes. You can ask a charity to restrict your gift to research, or to a specific program or lab, and to report back on how it was used. Some overhead is normal and necessary; what matters is results.

Ways to give in someone's memory

A memorial gift. Most charities accept gifts "in memory of" someone and will tell the family, without the amount if you prefer.
A named fund. Start a fund in their name through a donor-advised fund or a community foundation, and give from it every year. How named funds work.
A research fund at a university or hospital. Many academic medical centers accept gifts for research on a specific disease, or for a particular lab. Call the development office.
Memorial donations instead of flowers. Ask in the obituary or service program for gifts to a research charity. Sample wording is below.
A gift in your own will. Leave part of your estate to research on the disease, in their memory, so the gift continues after you. Add it to your will for free.

Research causes we study

Cancer Research & Care Fund the breakthroughs, and the prevention that works today. Genetic & Rare Diseases Help the families medicine has left behind. Mental Health & Addiction Help people find treatment that works. Science & Pandemic Preparedness Protect future generations from the next catastrophe.

Wording you can use

For an obituary or service program

In lieu of flowers, the family asks that gifts in [Name]'s memory be made to [charity's full name], to support research into [disease], at [website or mailing address].

A note to send with a memorial gift

This gift is made in memory of [Name], who died of [disease] on [date]. Please use it for research into [disease]. Please let [family member's name] at [address or email] know that a gift was made in [Name]'s memory, and tell me how the gift is used.

Common questions

Do I pay tax on an inheritance before I can give it away?

Usually there's nothing to pay first. An inheritance generally isn't taxable income for the person who receives it. The exceptions are retirement accounts such as IRAs, which are taxed as you withdraw, and inheritance taxes in Kentucky, Maryland, Nebraska, New Jersey and Pennsylvania, which generally don't apply to gifts that go to charity.

Can I give part of an inherited IRA to charity?

Yes. If you're 70½ or older, a qualified charitable distribution sends up to $111,000 (in 2026) straight from the inherited IRA to a charity, tax-free. If you're younger, withdrawals are taxable income, so it may cost less to give other assets. If a charity is named as the next beneficiary, you can also disclaim part of the IRA within 9 months of the death.

What does it mean to disclaim an inheritance?

A qualified disclaimer is a written refusal of some or all of an inheritance, made within 9 months of the death and before you accept any of it. The money then passes as if you had died first, to whoever the will or account form names next. You can't choose who receives it, so it only works for charity when a charity is next in line. Talk with an estate attorney first.

Is giving 10% of an inheritance a tithe?

Traditionally, a tithe is a tenth of what you receive, and many people of faith apply it to an inheritance. Others give 10% as part of a secular giving pledge. There's no rule: any share you give is a generous gift.

How do I make sure a memorial gift funds research?

Choose a charity that mainly funds research, ideally through expert review, and ask it to restrict your gift to research or to a specific program or lab. Ask for a report on how the gift was used. Some overhead is normal and necessary.

Can I start a fund in my loved one's name?

Yes. A donor-advised fund or a community foundation can hold a named fund that gives every year, and many research charities and universities offer named memorial funds above a minimum amount. You can also leave a gift in your own will in their memory.

Giving from an inheritance