Individual Retirement Account (IRA) owners and beneficiaries who are 70-½ or older and required to take a minimum distribution (RMD) may make a Qualified Charitable Distribution (QCD) directly from their IRA to any Internal Revenue Service (IRS) approved public charity. The amount donated is then excluded from taxable income.
You get no itemized charitable write-off on form 1040, but that’s okay because the tax-free treatment of QCDs equates to an immediate 100% deduction without having to worry about restrictions that can delay itemized charitable write-offs. A limit of $100,000 is allowed per year, and the contribution must be dispersed directly from the IRA to the charitable organization; it cannot go to the donor to pass on to the charity. Other restrictions may apply. One needs to obtain and keep substantiation of the donation and not have received any benefit in return for making the contribution. There are other tax advantages too. BHAS is not qualified to give tax guidance; PLEASE TALK TO YOUR TAX ADVISOR IF YOU WISH TO PURSUE THIS NEW OPTION. Our chapter is very appreciative of any donation; it allows us to continue our good work. With added monetary support, we can reach more of our dreams of education and conservation projects in our service area. We have the committed individuals; it is only our budget that constrains us.