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 "returns" on your contribution can put a nonprofit's tax-exemption at risk
• How you can financially hurt yourself when you're starting a new organization

Bottom line: Using your (or your significant other's) retirement fund to set up your new business is probably NOT a good idea. Protect yourself, protect your partner, and please, let that IRA grow.

Resources from this Episode

• Learn more about Jeff Beck at Coe Financial Group: https://www.coefinancial.com/
• Previous Episode: How Nonprofits Can Find and Hire a Good Lawyer https://birkenlaw.com/charity-therapy-podcast/158-hiring-lawyer/
• Episode Transcript: https://birkenlaw.com/wp-content/uploads/2026/03/CT159_Transcript.pdf

Connect with Us

• Jess Birken: https://www.linkedin.com/in/jessbirken/
• Jeff Beck – reach out at Jeff@coefinancial.com

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• Rate & Review on Apple Podcasts: Click "Ratings and Reviews" then "Write a Review"
• Send us your nonprofit questions: https://birkenlaw.com/podcast/#podcast-story

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