By Bill Lowman Executive Board Member and Advisory Chair Your Coronado Community Foundation is here to help improve the lives of our neighbors, preserve and enhance the charm of Coronado, and enrich the community's arts and cultural experiences. We realize that there are many options when it comes to year-end giving. In addition to contributing from an existing Donor Advised Fund (DAF), many of our donors choose to make gifts of appreciated stocks, utilize their Required Minimum Distribution (RMD), make a Qualified Charitable Donation (QCD), or include the Foundation in their estate plans.
To provide more information, here is an excerpt from a recent issue of KPBS Gift Planning, published November 8, 2024.
The US Government offers those who have individual retirement accounts (IRA) and are over 73 years of age a unique and beneficial method of making tax-free charitable donations called qualified charitable deductions or QCD’s. Those in this age category have a required minimum distribution (RMD) from their IRA which starts at approximately 3.8% of the total account and increases each year. The donation counts towards a taxpayer’s RMD, thus reducing taxable income. The good news is that the limit on a QCD has been increased for 2024 to $105,000 per individual and $210,000 per couple. In 2025, the amount will be increased to $108,000 per individual.
It is best to make such donations in early December to make certain the transaction takes place prior to December 31. There are reporting requirements for the account custodian and for the taxpayers’ return, as well as a written acknowledgment by the charity, but this is a relatively simple method of making a helpful gift while reducing the amount of taxes paid on RMD’s.
Read the full article: https://kpbs.giftlegacy.com/?pageID=30&docID=1311
To learn more about the Coronado Community Foundation and how you can make an impact, contact CEO Michelle Gilmore, mgilmore@ccfcoronado.org.
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