If you’re 70 ½ or older, now is a great time to consider tax-smart giving, especially if you’re charitably inclined and don’t rely on your IRA funds for living expenses. At the Shiawassee Community Foundation, we work with many donors to help them maximize the impact of their charitable giving through a qualified charitable distribution (QCD). This strategy allows you to use your IRA to support the causes you care about while enjoying potential tax benefits.
By making a QCD, your gift can support an endowment fund for a nonprofit you love, benefit the Community Foundation’s work directly, or even pass through to local nonprofits that align with your values. Best of all, consolidating your charitable giving through the Community Foundation makes it easy: rather than contacting multiple charities, you simply make one request to your financial advisor or institution, and we handle the rest.
Why Consider Giving from Your IRA?
- Support Nonprofits You Care About: Effortlessly benefit the organizations that matter most to you.
- Tax Benefits: A QCD can satisfy all or part of your required minimum distribution (RMD) without taxing funds.
- Keep Your AGI Lower: QCDs aren’t included in your adjusted gross income (AGI), which can offer additional tax-related advantages.
- Flexibility in Giving: You can use a QCD to donate up to $100,000 annually to multiple charities.
- Simplify Taxes: QCDs can still provide a tax benefit even if you don’t itemize deductions.
How Can You Use a QCD?
Our donors have used QCD gifts in a variety of ways, including:
- Supporting a beloved charity or church through our Foundation’s pass-through services.
- Establishing an endowment fund for long-term charitable impact.
- Creating a fund to support a specific interest, like small business development.
- Providing scholarships to local students.
- Contributing to the ongoing work of the Community Foundation.
For many, giving generously is one of life’s greatest joys—and using your IRA to give back can be personally satisfying while also offering financial benefits.
If you’re 70 ½ or older and looking for a meaningful way to support the nonprofits making a difference in your community, we encourage you to explore giving from your IRA. It’s an easy and impactful way to provide that also helps you enjoy tax advantages.
For more information or to explore your options confidentially, please contact Kim Renwick at kim@shiacf.org or call 989-725-1093. Our team is here to help you make the most of your charitable giving.
Disclaimer: This information is for general purposes only and not a substitute for professional legal or tax advice. Please consult your professional advisor to understand how making a QCD could impact your specific situation.