{"id":445,"date":"2017-06-21T10:58:38","date_gmt":"2017-06-21T10:58:38","guid":{"rendered":"https:\/\/www.ncfgiving.com\/northwest\/?page_id=445"},"modified":"2023-09-26T17:10:50","modified_gmt":"2023-09-26T17:10:50","slug":"using-your-ira-to-fund-your-giving","status":"publish","type":"page","link":"https:\/\/www.ncfgiving.com\/northwest\/using-your-ira-to-fund-your-giving\/","title":{"rendered":"Using Your IRA to Fund Your Giving"},"content":{"rendered":"\n
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How can I use my IRA money to fund my giving?<\/p>\n<\/blockquote>\n\n\n\n

One of the recurring questions we hear from givers is, \u201cHow can I use IRA money to fund my giving?\u201d The answer is not simple, which is why it is such a good question! Here is a high-level summary of the rules on this topic\u00b9.<\/p>\n\n\n\n

If you are younger than 70 \u00bd years old<\/strong>
If you are between the ages of 59 \u00bd and 70 \u00bd, you can take distributions from your IRA without penalty. However, these distributions are taxable income to you. You can make gifts from this money to your NCF Giving Fund, and those gifts will be deductible up to 50% of your total adjusted gross income for the year.<\/p>\n\n\n\n

NEW! IRA charitable distribution to a Charitable Gift Annuity (CGA)<\/strong>
The SECURE 2.0 Act includes provisions that allow a qualified charitable distribution (QCD) from an IRA to fund a charitable gift annuity (CGA). This is sometimes referred to by others as an IRA charitable rollover into a CGA.
If you are at least 70\u00bd, you can now make QCDs to fund CGAs and receive annuity payments for the
lifetime of you and\/or your spouse. Each IRA owner is limited to a total of $50,000, and the QCDs that
fund CGAs must be completed in one single year. <\/p>\n\n\n\n

If you are over 70 \u00bd years old<\/strong>
You are required to take minimum distributions from your IRA each year according to a formula establish by the IRS. These are called RMDs (Required Minimum Distributions). You may also take additional money beyond the RMD, if you choose. Any money you receive in distributions from your IRA is taxable to you, EXCEPT when you distribute some of this money directly to charity. You can distribute up to $100,000 each year directly to charity without paying any tax, and those distributions will count toward your RMD.<\/p>\n\n\n\n

What does it mean to distribute this money \u201cdirectly to charity?\u201d<\/strong>
Under current rules, distributions must go to either (1) a specific operating charity or church, or (2) to a fund at NCF that has been designated for a particular operating charity or church. Distributions to your donor-advised fund (Giving Fund) are not considered to be \u201cdirect to charity\u201d and are taxable to you.<\/p>\n\n\n\n

What is a Designated Fund?<\/strong>
A Designated Fund at NCF is an enhanced type of fund that identifies a singular charity as the sole eligible recipient of grants from that fund.<\/p>\n\n\n\n