Charitable IRA Giving
Giving Directly from an IRA
Did you know?
While the new tax law brought many changes to households across the nation, one thing that remains the same and is now permanent is the Charitable IRA Rollover Act. This allows donors age 70 ½ or older to donate up to $100,000 from their IRA without having to recognize the distribution as income.
We advise that before taking any actions you should consult with a qualified tax advisor, but if you’re receiving taxable income from retirement plan assets there are a number of tax-advantaged ways to make these assets work for you and qualified nonprofits like SAHC.
Something to remember is the transfer is not deductible, the amount you are giving does not count as taxable income and this can often reduce your taxable income
Here’s an example: If your Required Minimum Distribution (RMD) is $20,000 and you give a $5,000 Qualified Charitable Distribution (QCD) to SAHC only $15,000 of the IRA distribution will be reported as part of your income.
If this is applicable to you – it’s easy to do. To take advantage of the IRA charitable distribution, the distribution must be sent directly from your IRA manager to SAHC. Contact your IRA manager and ask them to make a transfer directly to SAHC, 372 Merrimon Ave. Asheville, NC 28801.
SAHC’s non-profit tax ID# is: 62-1098890.
Questions? Contact Membership Director Cheryl Fowler at cheryl@appalachian.org or Finance Director Lisa Fancher at lisa@appalachian.org
“We give to SAHC because of the wonderful work they do in preserving our mountains, our farms, and our habitat. These are the reasons most of us are here. Giving directly from our IRA means that we get to continue our charitable giving without any loss of tax benefit given the new tax laws.”
Why donors like Rollover IRAs
They also like the fact that a QCD will probably simplify their tax returns.
Getting their IRA manager to transfer the funds is relatively easy.
Plus giving a QCD might make you happier because a yearly gift from their IRA is likely to be larger than your end-of-year donation by check or credit card. Donors feel good knowing they are doing more to support a cause they believe in.