IRA Charitable Rollover or Qualified Charitable Distributions (QCD)
Whereas a bequest or beneficiary designation is a deferred gift, a Qualified Charitable Distribution is a gift of resources that have accumulated in a tax deferred IRA that can be assigned even now. A QCD is a direct transfer of funds (such as an RMD that is not currently needed) from your IRA to a qualified charity, like CLC. QCDs can be counted toward satisfying the Required Minimum Distribution (RMD) requirement for IRA account holders who are older than 70 ½ as long as certain rules are followed.
In addition to the benefits of giving to charity, a QCD excludes the amount donated from taxable income. If your itemized deductions are less than the Federal standard deduction amount, using a QCD to satisfy your RMD requirement can effectively make the donation fully tax-deductible, as if it were fully claimed as an itemized deduction. For donors who have been making annual contributions to TCLC from current year income and are required to make RMDs, a QCD has special benefits that you might seriously consider. If you wish to follow up on a QCD, you should consult your financial advisor or tax preparer.
Donor-Advised Funds
A donor-advised fund (DAF) is like a personal charitable investment account from which donors can support many different charities. The accounts are controlled by a nonprofit, called a sponsoring organization, that invests the donated assets and manages the account. Once a fund is established at the sponsoring public charity, donors tell the sponsor which charities should receive donations from their account.
Donations to a DAF qualify for an immediate tax deduction, just like a donation to any other specific public charity. The amount of the tax deduction may depend on the type of donation. Contributions of assets other than cash are simple with a DAF; other types of charities may not be able to accept non-cash donations.
A donor can support virtually any IRS-qualified charity with money in the DAF. The sponsoring organization will conduct due diligence to ensure the funds granted out will be used for charitable purposes and the grantee is an IRS-qualified charity. While the donor is deciding which charities to support, their donations can be invested for tax-free growth based on investment preferences. Many national financial services firms sponsor DAF’s which are managed by the related investment company.
DAF’s are a simple, flexible and tax-efficient way to give to give to your favorite charities. We hope that the CLC is one of your favorites.
Next Steps
If you are considering a planned gift for the TCLC and have questions, please contact us by phone at 707-463-0220 or by email at nancieh@thecenterukiah.com. We would be happy to schedule a time to call or meet with you personally to give you the information that you need. We encourage you to give the gift of Life that will impact generations to come by safeguarding the mission of TCLC: to ensure that women at risk for abortion will always have access to ethical medical care. Choose Life, choose TCLC!
