If you are 70½ years old or older and are withdrawing funds each year from your IRA, you can take advantage of a simple way to support GDFCF. Many retired taxpayers who are receiving annual distributions from their IRAs gain no tax benefit from charitable donations because they are claiming the standard deduction on their personal income tax returns. In this situation, a so-called “Qualified Charitable Distribution” (QCD) from the IRA can be used to regain the lost tax deduction.
With a QCD, the IRA pays an amount — that it would otherwise distribute to you — to a charity of your choice, instead. The amount paid to charity is not included in your taxable income, but still counts toward your required annual minimum IRA distribution. So, you get the same tax benefit from your donation that you would have received if you were not claiming the standard deduction: The income exclusion for the IRA distribution to charity replaces the unclaimed charitable deduction. You can give up to $100,000 from your IRA each year using this technique.
If you would like to give via an IRA and you need more information, please contact us:
GDFCF Executive Director
GDFCF Development Advisor