Suggested Ways to Donate from Your IRANovember 8, 2018
Giving Better, How To Give
Like many individuals, your IRA may have increased in value over the years, leaving you with more income than you may need. You can benefit your favorite charity while decreasing your taxable income and satisfying your required minimum distribution for the year. Here are some examples:
Give Directly to a Nonprofit of Your Choice
Rose was a registered nurse and now volunteers for her favorite nonprofit organization. During her working years, Rose’s IRA grew substantially and she had almost $450,000 in her IRA account. Since Rose’s income meets her needs, she decided to make a qualified charitable distribution of $2,000 from her IRA to the nonprofit where she volunteers. She contacted her IRA administrator, requested the proper forms, and completed the process to send the gift to the nonprofit. It was easy for Rose to make the gift and she liked the fact that she helped her favorite nonprofit without increasing her taxes.
Create a Legacy: Set up a Designated Fund at Central Carolina Community Foundation
George is a retired business owner with a significant IRA and substantial income from investments. He is philanthropic and regularly supports his church, college, and a local youth program. Because he is over age 70ó, George gave $100,000 directly from his IRA to set up a Designated Fund at Central Carolina Community Foundation. The Foundation automatically distributes specific gifts annually to the three charities he chose when he created the George Smith Legacy Foundation. Over time, George will make additional gifts to the fund, creating a legacy of giving so that after his death, his favorite causes will continue to receive gifts from his fund.
We are here to answer your questions, feel free to call or email us. Since each person’s situation is unique, we always recommend that you discuss the benefits of an IRA rollover with your personal professional advisor before making a gift.