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Multiple Year-End Donation Options for You
Are you aware of the tax benefits associated with Qualified Charitable Distributions (QCD) and Donor Advised Funds when making year-end donations to support Fun Time Early Childhood Academy?
If you're 70½ or older, you can take advantage of QCDs, enabling you to direct up to $100,000 annually from your IRA to a qualified charity like Fun Time Academy. By using QCDs, you can offset Required Minimum Distributions (RMDs) from your IRA, ensuring a tax-free withdrawal and the opportunity to make a charitable contribution without depleting your current cash or other assets.
Many financial institutions require QCD arrangements from your IRA to be set up in October or November, so consider this option for your year-end giving now.
Another alternative is to donate through a Donor Advised Fund.
This year, the Secure 2.0 Act has introduced a new option for those aged 70½ or older with IRAs. They can use a QCD from their IRA to fund a Charitable Gift Annuity (CGA). A CGA is a mutually beneficial contract where donors provide a gift, potentially earning a partial tax deduction, and receive a fixed stream of income from the charity for life.
Consult your financial advisor to determine the best option for you.
To explore making a year-end gift through your donor-advised fund or IRA or to learn more about establishing a Charitable Gift Annuity, please contact Beth Sterchi at 239-261-8284 or BSterchi@funtimeacademy.org.
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