Qualified Charitable Distributions- Giving from your IRA
For many of us, being generous with our money is one of the great joys in life. And it turns out that being generous with your IRA can be both personally satisfying and provide tax benefits.
“On a personal level, my wife Bonnie and I have worked hard, saved and invested over the years and now have the opportunity to share with a community that has been very good to our family,” said Don Fletcher, Community Foundation Board Member.
If you are fortunate enough that you do not need all of the funds from your IRA, it is good to have a plan.
When you reach the age of 70 ½ you can reduce your taxes and make an impact through the Community Foundation with a qualified charitable distribution (QCD).
Click here for a graphic with more details about how it works. (opens in new window)
A QCD can be made that meets your required minimum distribution (RMD)- where annual withdrawals are mandatory. Further, given the recent tax law changes, if you no longer itemize, your checkbook donations to charity will not reduce your tax bill. Using a QCD for your charitable giving may allow you to take the higher standard deduction while also reducing your taxable income.
Although Donor Advised Funds are not eligible to receive QCDs per the IRS, the Community Foundation has several alternatives that donors can consider.
The following types of funds are eligible to receive QCDs from IRAs:
Programs and Services is supporting the work of the Community Foundation through our operations. By supporting our work, you help us continue to make bold investments in people and place, bringing like-minded donors together to build our best community.
Community Investment Fund is our unrestricted fund to meet the ever-changing needs of our community. Today’s priorities may not be tomorrow’s, but this fund will always address our region’s most pressing needs and promising opportunities as guided by our strategic priorities.
Student Success help students of all ages towards successful completion of their degree. The Community Foundation has the Complete Your Degree Endowment Fund and Scholarship Funds to support local students and the Come Home Award to attract talent back to our region.
Designated Funds support the good work of specific nonprofit organizations. We have funds for over 40 local nonprofit organizations.
Field of Interest Funds support broad areas of need and award grants to the community organizations and programs addressing this such as:
The generosity of our donors have helped the Community Foundation build a better community for the past 75 years and we appreciate your consideration to keep the good work going. Your IRA gift can help us continue to make bold investments in people and place.
This information is not a substitute for expert legal, tax, or other professional advice, and we strongly encourage donors to work with your professional advisor to determine the impact of making a QCD on your particular situations.
For more information or a confidential appointment, please contact Jackie Hanton, Vice President at 810-984-4761 or jackie@stclairfoundation.org.