Tax-savvy donors are using their IRA’s to make gifts to the NSRWA. Will you be one of them?
Tax reform has increased the standard deduction with the result that fewer people are itemizing. Using an IRA charitable distribution, otherwise known as a qualified charitable distribution, will give you a tax break when you make a donation to your charity of choice even if you are not itemizing.
Those of you who are 70½ or older probably already know you must begin to take a required minimum distribution (RMD) from retirement savings accounts. RMD is taxable income. If you don’t need some or all of the income you are to receive from your RMD, you may request your IRA custodian make a distribution directly to your charity of choice—up to a maximum of $100,000 annually. The IRA charitable distribution will count toward your RMD for that year and won’t be counted as taxable income (although it cannot be taken as a charitable deduction). Keep in mind these gifts can only be made directly from your IRA through your custodian) and you must be at least 70½. Please reach out to your tax advisor and/or your IRA custodian for more information specific to you.
As a result of the new tax law this method of charitable giving is becoming more popular. We hope you identify the North and South Rivers Watershed Association as your charity of choice when deciding to direct a portion or all of your RMD for the year. As a 501 (c) 3 non-profit organization, our tax ID# is 23-7181992.