Those who are 70 ½ or older must take a minimum distribution from their IRA each year. And it counts as taxable income. There’s good news, however.
The IRS allows you to donate up to $100,000 of your required minimum distribution from an IRA directly to a nonprofit organization or a public charity, such as the Community Foundation of Tampa Bay. It’s tax free.
This kind of donation:
- Reduces your taxable income
- Bypasses the Adjusted Gross Income limit for cash gifts
- May offset a Medicare premium increase.
Many of our donors have used their required distributions to do good things for the community. For example, last year Bob and Jan Schwerin established an endowment that will benefit youth programs in Pinellas County for generations.
Ways to donate your IRA required minimum distribution
Several types of endowments administered by the Community Foundation qualify to receive this charitable gift. (Private foundations and donor advised funds cannot receive the IRA rollover gifts). They include:
Creates a lasting legacy for a specific nonprofit organization. The nonprofit receives a grant from the endowment twice a year. That provides constant stream of income. It’s a great way to support a nonprofit you care about, your church or synagogue, or even your alma mater.
- Field of Interest
Supports specific issues or causes such as public education, children, seniors, the arts or animal welfare. The Community Foundation directs grants to the most appropriate and effective organizations working on the issue.
- Community Impact
Makes grants to respond to the Tampa Bay area’s most pressing needs and challenges each year.
Benefits the education of students at a particular school, from a geographic region or interested in a specific area of study.
Here at the Community Foundation, you can add your support to an existing endowment. Or you can set up a new endowment in your name or the name of a loved one.
Giving is one of life’s pleasures. We can help you enjoy it today.