DONATE A GIFT FROM YOUR IRA - QUALIFIED CHARITABLE DISTRIBUTION
When you take a distribution from your Individual Retirement Account (IRA), you might owe taxes on it. If money from your IRA is donated directly to a qualified charity, like American Outreach Foundation, you might save on taxes and help expand possibilities, and change the lives of veterans, single parents, low-income families and seniors.
This kind of donation is called a “qualified charitable distribution” (QCD) and can be used to satisfy all or part of the “required minimum distribution” (RMD) from your IRA.
If you are required to take a distribution but don’t need the money for living expenses, consider reducing your taxes and helping American Outreach Foundation transform challenging circumstances into life-changing opportunities for veterans, single parents, low-income families and seniors.
Even if you aren’t required to take an RMD, you may still be able to use your IRA to contribute to American Outreach Foundation. Talk to your IRA custodian, financial advisor, accountant, or lawyer to find out whether a QCD is right for you.
How much charitable donations will reduce taxes will depend on your tax situation and the asset you give. Remember that the three common ways to donate to charity have different tax benefits:
-
Giving cash
-
Donating appreciated securities
-
Taking a qualified charitable distribution from an IRA
This information is offered to help you understand some of your options for making a charitable gift to American Outreach Foundation. Only a lawyer or tax professional can give you tax advice.
DONATE FROM YOUR IRA
To make a QCD, contact your financial institution or go to their website for instructions on how to request the distribution.
You may have the option to instruct your financial institution to either send a check directly to American Outreach Foundation or to your address.
It is common for financial institutions to send a check without adequately identifying the donor, even if you explicitly instruct them to do so. So, please notify us that you will be making a QCD donation from your IRA so we can make sure we properly recognize your gift and send you a receipt in a timely manner.
If you choose to have the check sent to your address, it must be made payable to American Outreach Foundation to get the tax benefit of the charitable distribution.
Do not deposit the check - simply take the check they send you, and mail it in a new envelope with a note that includes your name, address, and email address if you wish to provide it. Mail it to:
American Outreach Foundation
68340 Risueno Rd. #B
Cathedral City, CA 92234
IS IT TIME TO UPDATE THE BENEFICIARIES ON YOUR IRA OR RETIREMENT PLAN?
After enjoying your retirement, your retirement accounts might still have value that can help the American Outreach Foundation give youth exiting foster care a real shot at expanding their future.
After enjoying your retirement, your retirement accounts might still have value that can help the American Outreach Foundation give youth exiting foster care a real shot at expanding their future.
Doing so could reduce the taxes owed by your estate and simplify making a gift that avoids probate or other lengthy administration processes.
Contact your financial institution or retirement plan administrator for instructions on naming or updating account beneficiaries.
If you choose to make American Outreach Foundation a beneficiary, please let us know! This will allow us to thank you for your generosity and help ensure your gift is properly recognized when received.
American Outreach Foundation’s Employer Identification Number (EIN) for tax reporting is: 26-0427467.