If you are 70½ or older, you can make gifts directly from your Individual Retirement Account (IRA) to Bright Hope without paying income tax on the withdrawal.
In summary:
- You must be at least age 70½ or older on the date the gift is made.
- Your check must be made payable directly to Bright Hope to qualify as a qualified charitable distribution and must not be made out to the IRA owner.
- Gifts can be used to satisfy your IRA required minimum distribution each year.
- Each person may give a maximum of $100,000 per year.
- Gifts can be designated to a specific project or where most needed.
Funds held in 401(k), 403(b), or tax-deferred annuity plans are not eligible but may be rolled over into a Standard IRA, then used to make tax-free gifts to a ministry. Gifts from a SEP-IRA and SIMPLE IRA may qualify but should be discussed with your professional tax advisor.
In legal-speak: A qualified charitable distribution (QCD) is a distribution made directly by the trustee of your individual retirement arrangement (IRA), other than a SEP or SIMPLE IRA, to certain qualified organizations. You must have been at least age 70½ when the distribution was made. Your total QCDs for the year can’t be more than $100,000. If all the requirements are met, a QCD is non-taxable, but you can’t claim a charitable contribution deduction for a QCD. See Pub. 590-B, Distributions from Individual Retirement Arrangements (IRAs), for more information about QCDs. (IRS PUBLICATION 525, p.7)
To get more information about giving a charitable IRA rollover gift to Bright Hope, email Donationprocessing@BrightHope.org or call 224-520-6100.
This information is not intended as legal or tax advice. For such advice, please consult an independent attorney or tax advisor.
