Qualified Charitable Distributions
If you are a donor 70.5 years young or above, you can start making gifts out of your traditional IRA accounts. These Qualified Charitable Distributions or IRA Charitable Rollover gifts to RiversEdge West avoid taxes on that distribution.
Your Qualified Charitable Distributions must be made directly from your IRA custodian to RiversEdge West on your behalf. Each financial institution has its own process for initiating a Qualified Charitable Distributions.
Required Minimum Distribution
If you have a traditional IRA, you are required to take out a certain amount from your account each year once you reach the age of 72, called a Required Minimum Distribution. Failure to withdraw the full amount results in a tax penalty of 50% of that total. To avoid this, you can donate your Required Minimum Distribution — and unlike cash withdrawals, Qualified Charitable Distributions are untaxed.
To learn more, contact Cara, RiversEdge West’s Director of Development, at ckukuraitis@riversedgewest.org.
Donor Advised Funds
A Donor-Advised Fund, or DAF, is a giving account established at a public charity. It allows you to make a charitable contribution, receive an immediate tax deduction and then recommend grants from the fund over time. Before they are granted, the funds can be invested for impact.
By utilizing a Donor-Advised Fund and essentially front-loading your charitable contributions, you can benefit from taking an itemized deduction in the year of your donation and then taking a standard deduction in the following years.
Contact your financial advisor for more information.
RiversEdge West is a not-for-profit organization. It has been granted a federal tax exemption under IRS Code Section 501(c)(3). Our tax ID number is 27-0007315. Registered Name: RiversEdge West.