Maximize your Charitable Giving by using your IRA

Maximize your Charitable Giving by using your IRA

Did you know that you can minimize taxes owed by using your IRA to make a charitable donation?

If you are over age 72 and have an IRA, you already know that you must start taking required minimum distributions from your IRA and include those distributions in your taxable income.  If you subsequently donate to charity, you will be donating with after-tax dollars.

There is a better way to give to charity and pay less in taxes – a qualified charitable distribution!  You have the ability to direct up to $100,000 of your required distribution amount straight to qualified charities (those recognized by the IRS under Section 501(c)(3)). While the IRS does not allow donors to make a qualified charitable distribution directly to your own donor-advised fund, you can donate to field-of-interest funds including including OCCF Charitable Funds and Community Initiatives, and that amount will NOT be included in your taxable income for the year. Support your favorite OCCF Charitable Fund today by making your year-end gift before December 31, 2022.

If you are not ready or able to take advantage of lifetime charitable gifts using your IRA, you may also consider making your donor advised fund (DAF) or any of the OCCF Funds described above as beneficiaries of your IRA upon your death.  IRA proceeds are taxable to your individual beneficiaries when they are required to withdraw them following your death (typically they must withdraw all funds within 10 years of your death), so they will only receive a fraction of what is in your IRA.  By naming your DAF or an OCCF Fund as the beneficiary, the entire balance of your IRA will go to charities that you support.  Assigning your DAF or OCCF Fund as a beneficiary of your IRA is easy.

Our team is here to assist you to understand your options and answer your questions. Please reach us directly:

Margita Blattner – Sr. Director of Philanthropic Strategy; [email protected]; 949-464-4510

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