The Greene County Community Foundation has launched its annual campaign to continue funding its endowment. This endowment allows nonprofit organizations to apply for grants to support projects that benefit the community. Since 2005, numerous projects in Greene County have been funded, and the GCCF endowment provides the necessary financial resources to turn these visionary projects into reality.
As many nonprofit organizations seek year-end donations, one often-overlooked method of contributing is the Qualified Charitable Distribution (QCD) from your IRA. When an IRA owner contributes directly to a nonprofit organization from the IRA, the distribution is not required to be claimed as income on the IRS Form 1040. The benefit is that you can remove funds from your IRA without paying federal income tax, all while supporting your favorite charities, such as the Greene County Community Foundation.
There are a few simple rules to follow when making this type of charitable contribution:
– The IRA owner must be at least 70 1/2 years of age.
– The organization must be recognized as 501(c)(3) by the IRS.
– The check must be payable to the nonprofit organization. The custodian of your IRA will issue the check.
– The IRA owner, not the custodian of the account, is responsible for tracking the QCD’s for income tax purposes. The 1099R, issued by the custodian, will not identify which distributions are for charity and which distributions were taken by the IRA owner
– The maximum annual QCD amount is $105,000.
If you itemize your deductions, you cannot count the QCD as a charitable contribution, this would be double dipping.
Your IRA custodian can assist you in completing a Qualified Charitable Distribution. However, to ensure that the charity receives and cashes the check by Dec. 31, the request should be made as soon as possible. Be sure to consult your financial professional, tax professional or bank for assistance and help make a difference by supporting your favorite charities in carrying out their missions.
