Help Your Bottom Line with IRA Qualified Charitable Distribution

Adults age 70 ½ and over can take advantage of a simple path to benefitting your community while receiving tax benefits.

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 of up to $100,000 to eligible nonprofit organizations, making a long-lasting impact on their community.

Here are a few things to know about making and IRA rollover gift to United Way:

  • Your gift will be put to use today, allowing you to see the difference your donation is making.
  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • If you have not yet taken your required minimum distribution (RMD) for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.

It is wise to consult with your tax professionals if you are contemplating a charitable gift under the extended law.

Steps for Making a Charitable IRA Rollover Gift to United Way of 1000 Lakes

If you are contemplating a qualified charitable distribution from your IRA to United Way, simply use the sample letters below for each separate transaction.

  • First: Download an Administrators/Trustees sample letter and fill the required information in the bold bracket fields. Mail or fax to your IRA Administrator or Trustee. Your IRA Administrator or Trustee may ask you to complete its own charitable IRA rollover authorization form before processing your request. If so, promptly complete and return it. Especially if year-end is approaching.
  • Second: Download a notification sample letter and fill the required information in the bold bracket fields. Call or mail United Way of 1000 Lakes your gift intention so we may be on the lookout for it and can promptly acknowledge the gift in writing.

Do you have questions about making an IRA rollover gift to United Way? Feel free to contact United Way at 218-999-7570 or email Executive Director Kim Brink Smith at kimberly@uwlakes.org.

Disclaimer: 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.