GIVE SAVVY: Using Your IRA to Make a Charitable Contribution

Susan L. Hunt - Susan Hunt Law

Charitable Contributions Using Your IRA

If you are at least 70½ years old, one of the most tax-efficient ways to make charitable donations is through a Qualified Charitable Distribution (QCD) from your IRA. Simply tell your financial advisor you want to make a QCD and they will provide the necessary forms and handle the transfer.

Donations must be to a qualified 501(c)(3) charity like Sanctuary House, and must be transferred directly from your IRA to the charity. If you withdraw the funds first and then donate, it will not qualify as a QCD and you will not get the same tax benefit.

Each individual can donate up to $100,000 per year through QCDs. Don’t forget to keep good records! For tax purposes, you should retain records of the transaction, including the acknowledgment of receipt from the charity.

Tax Benefits of Using Your IRA for Charitable Donations

Using your IRA to make charitable contributions offers several tax advantages:

QCDs are excluded from your taxable income. This can be particularly beneficial if you do not itemize deductions on your tax return.
If you are required to take RMDs from your IRA, QCDs can count towards satisfying this requirement thus reducing your taxable income.
Charitable contributions made through QCDs are not subject to the adjusted gross income (AGI) limits that apply to regular charitable deductions.
By reducing your taxable income, QCDs might lower your tax bracket.

Making charitable contributions using your IRA is a strategic way to support charitable organizations while also reaping tax benefits. Be sure to consult with a financial advisor or tax professional as well as your estate planning attorney to ensure your charitable giving aligns with your estate plan, financial goals, and complies with current tax laws.

The founder of Susan Hunt Law, Sue has been practicing law for 30 years, helping families enhance their lives today and secure their futures tomorrow. As a strategist who loves puzzles and people, Sue enjoys using this combination to analyze the many threads of her clients’ lives. Sue is a member of the Sanctuary House Board of Directors and is available to provide additional guidance on making a Qualified Charitable Distribution or including Sanctuary House in your estate planning. Contact Sue at sue@susanhuntlaw.com or (336) 373-9877

LINDA AND JOHN ENGLAR

Giving is in their DNA

Linda and John Englar have GIVING in their DNA. They volunteer their time, freely share their expertise, and are financially generous in Greensboro and beyond.

Sanctuary House holds a special place in their hearts.

“We have seen first-hand the difference Sanctuary House makes in the lives of their members and the community, so we are delighted to support the life-changing work there. Using our IRA to make a Qualified Charitable Distribution (QCD), makes great financial sense for us. We realize a tax advantage by gifting appreciated stock AND our gift counts towards our Required Minimum Distribution.”

The Englars’ gifts support Sanctuary House’s Greatest Needs Fund, which is used to meet program and operational needs.

SANDRA O'CONNOR

It all Fits Together

Sandra O’Connor is no stranger to philanthropy. Her support of the community has led to life-changing opportunities for people and organizations, including Sanctuary House.

Sandra uses her IRA to make her Qualified Charitable Distributions (QCDs). “It’s easy,” she says. “Realizing a tax advantage and being able to make a difference makes sense to me. It all fits together – supporting the work Sanctuary House does while realizing a tax advantage is an obvious way to make an impact.”

Sandra’s gifts support Sanctuary House’s long-term future through the Dr. Chris Rama Annual Campaign for endowment funding.

For information about supporting Sanctuary House with a Qualified Charitable Distribution, contact Terri Jackson, Chief of Philanthropy, at terri@shgso.org or 336-339-1429.

To support Sanctuary House directly, contact Terri Jackson or give online.

It’s fast, safe, and secure.

Sanctuary House is a qualified 501(c)(3) organization - Tax ID: 56-2257832.