Adults age 70 ½ and over can take advantage of a simple path to benefitting their community while receiving tax benefits through IRA charitable distributions.

When you transfer funds from your IRA to a qualifying charitable organization such as United Way of 1000 Lakes, you don’t need to pay income taxes on the gifted funds. This allows donors to make annual gifts to eligible nonprofit organizations, making a long-lasting impact on their community.

Updates for 2024: New Tax Incentives and Rules
Under the 2024 rules, donors can now make Qualified Charitable Distributions (QCDs) of up to $105,000 per year directly from their IRA to eligible charities ($108,000 for 2025). Additionally, the limit will now be indexed to inflation, allowing for modest annual increases in the maximum QCD amount.

Furthermore, individuals can make a one-time election to use up to $53,000 ($54,000 in 2025) from their IRA to fund certain types of charitable vehicles, such as charitable gift annuities or charitable remainder trusts. These options provide donors with the ability to support causes they care about while potentially receiving income for life.

• Key Benefits of an IRA Charitable Rollover Gift
  • Immediate Community Impact: Your gift will be put to use today, allowing you to witness the difference your donation makes.
  • Tax Advantages: You pay no income taxes on the gifted amount. The transfer generates neither taxable income nor a tax deduction, benefiting even those who do not itemize their deductions.
  • Satisfy Required Minimum Distributions (RMDs): If you haven’t yet taken your RMD for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

1. Steps for Making a Charitable IRA Rollover Gift to United Way of 1000 Lakes
   1. Notify Your IRA Administrator: Use the sample letter provided to request a transfer from your IRA to United Way. Your IRA Administrator may require you to complete its own authorization form. Download the Administrator/Trustee sample letter and fill in the necessary information.
   2. Inform United Way: Send a notification letter or call us to share your gift intention. This ensures we can promptly acknowledge your gift in writing. Download the notification sample letter to provide details of your planned contribution.
   Resources

For questions about making an IRA rollover gift to United Way of 1000 Lakes, contact us at 218-999-7570 or email Executive Director Kim Brink Smith at kimberly@uwlakes.org.

It is always wise to consult with your tax and financial professionals when contemplating a charitable gift under these updated rules. United Way of 1000 Lakes does not provide legal, tax, accounting, or other related professional advice. Such advice must be sought from the reader’s own advisors. The information provided here is for general informational purposes only.