Use Your IRA for Charitable Donations By Charmen Goehring
Donating to charity from your IRA generally results in a tax benefit. Normally, distributions from an IRA are taxed. However, an individual who is age 70 ½ or older may donate to a qualified charity (has Sec. 501(c)(3) status such as AAUW Funds or Tech Trek) and not pay tax on the distribution. The donation must be paid directly from the IRA to the charity (the check drawn on the IRA must be payable to the charity). Even better, the distribution can be counted as part of your required minimum distribution (RMD).
For example, Hilda wants to donate $1,000 to AAUW.
If Hilda withdraws the $1,000 and then writes a check to AAUW, she will pay tax on the $1,000. Assuming that the tax is $200, that will leave her $800 to donate.
Before recent tax law changes, Hilda could offset the tax on the distribution by claiming an itemized deduction for the donation. However, under current tax rules, most people do not itemize deductions because the standard deduction is higher.
If instead, Hilda directs her IRA to send a $1,000 donation to AAUW, the distribution is not taxed, and the charity gets $1,000.
Please consult your tax adviser to determine if this strategy works for you.
AAUW Legacy Circle By Charmen Goehring
You are invited to join the AAUW Legacy Circle, a wonderful community of likeminded supporters who have made equity a central part of their legacies through planned giving. Planned gifts, also known as legacy gifts, offer some of the most innovative and meaningful ways to give back and ensure a better future for women, girls and their communities. Affirm your commitment to AAUW through a planned gift to AAUW National today. Together we’re making a lasting impact to ensure a better future for girls and women!
Benefits of Planned Giving
- Planned gifts, also known as legacy gifts or bequests, allow you the flexibility to provide for your family and support AAUW at the same time.
- Planned gifts need not affect your cash flow during your lifetime; some legacy gifts are designed to also give back, providing steady income for you and your loved ones for life.
- Certain planned gifts may reduce or even eliminate estate or capital gains taxes.
- There is no minimum gift amount, and every gift can be tailored to suit your needs.
Become a visionary member of the AAUW Legacy Circle! To learn more, please visit AAUW.ORG/Legacy.
Or request a brochure or ask us a question by contacting Heather Miller, Director of Advancement, at: 202-785-7766 or firstname.lastname@example.org. Charmen Goehring of the AAUW Legacy Circle Team is also available to assist you and may be reached by email at email@example.com.