Donate your IRA Required Minimum Distribution to the Food Bank of the Albemarle for tax savings and maximize your gift potential.
Planning your annual taxes and charitable giving can go hand-in-hand. Here’s a look at what Required Minimum Distributions (RMD) are and how they may be useful to your tax planning and charitable giving strategy to Food Bank of the Albemarle.
What is an RMD and How Can You Utilize this to Gift Benefit the Food Bank?
If you’re age 72 (depending on birth year) or over and have a traditional IRA, you may be required to take a RMD each year. RMDs are typically taxed as ordinary income, which can increase your tax bill. However, donating part or all your RMD to Food Bank of the Albemarle through a Qualified Charitable Distribution (QCD) is a great way to make an impactful gift, supporting our mission with the possibility of tax benefits.
What is a Qualified Charitable Distribution (QCD)?
A QCD allows individuals aged meeting age requirement to directly transfer from their IRA to a qualified charity. The distribution counts toward your RMD but isn’t considered taxable income, which can help reduce your overall tax liability.
Benefits of Donating an RMD to a Non-Profit
Donating your RMD to the Food Bank is a generous way to ensure our organization has the funding we need to provide food and resources each year.
It’s also a tax savings for you as a donor.
Since the RMD is not counted as taxable income, it can reduce your adjusted gross income (AGI), which may help keep you in a lower tax bracket.
How to Make a QCD
Contact Your IRA Custodian: Inform them that you’d like to make a QCD and specify the Food Bank of the Albemarle and the amount you’d like to donate.
Giving your RMD can be a smart financial move while supporting FBA. If you’re considering this strategy, it’s wise to consult with a tax advisor or financial planner to ensure you meet all requirements and maximize the benefit of your charitable gift[DF2] .
For further information, please call Diana Flippo, Director of Development, Food Bank of the Albemarle at 252-562-4110.
Mail your donation to:
Attn: Diana Flippo
Food Bank of the Albemarle
PO Box 1704
Elizabeth City, NC
