If you want to save money on taxes and support Sanctuary’s mission to help survivors leave abuse behind, consider making a qualified charitable distribution (QCD) from your IRA.
What is a Qualified Charitable Distribution (QCD)?
Giving a QCD is a tax-smart strategy for IRA owners to achieve maximum impact for their charitable donations. QCDs are direct transfers of up to $100,000 per person from their IRA to a qualifying charity, like Sanctuary. The donor doesn’t report QCDs as taxable income and gifting the income can lower one’s adjusted gross income (AGI,) which is used to determine the taxable portion of Social Security benefits and other deductions and credits.
What age can I start to make a QCD?
IRA owners and beneficiaries who are age 70 ½ or older qualify.
What is a Required Minimum Distribution (RMD) and how does that relate to QCDs?
Beginning at age 73, you may be subject to taking annual withdrawals known as Required Minimum Distributions (RMDs) from your tax-deferred retirement accounts, such as a traditional IRA. If you do not make withdrawals, you’ll be subject to pay a potentially significant penalty.
Qualified Charitable Distributions (QCDs) are gifts to charity that replace your receiving part or all of an RMD as taxable income.
How do QCDs help Sanctuary?
QCDs are an excellent way to fund lifetime giving in retirement years. In addition, they support our mission of providing comprehensive services to survivors of gender-based violence, including life-saving shelter, counseling support, legal assistance, and economic empowerment programs.
What do I need to do to make a QCD?
It’s simple – contact your IRA custodian and follow their procedures to request that part or all of your QCD be gifted directly to Sanctuary. It’s important to remember that the money must be paid directly from the financial institution to Sanctuary. If the funds were previously held as an asset such as stocks or bonds, the investment will be sold to transfer cash to the charitable organization.
To make use of this tax-smart giving strategy, please ensure that the check arrives with your name and address so we can thank you and send you a gift acknowledgement letter.