Now it’s easier than ever to make the gift of a lifetime.
IRAs can qualify for tax-free charitable distributions
Hudson Community Foundation can help turn your individual retirement accounts (IRAs) into tax-saving charitable gifts. Extended tax benefits allow more people to experience the joy of giving during their lifetimes.
You can give more for less.
Thanks to the permanent legislation, American seniors can make the gift of a lifetime by giving their IRAs to charity without federal tax penalty. So your retirement funds can go further than ever before. Individual taxpayers (and qualified spouses) age 72 or older, can direct distributions, called Qualified Charitable Distributions (QCDs), from traditional IRAs to eligible charitable organizations. If you are subject to the Required Minimum Distribution (RMD) rules, amounts distributed as QCDs count toward your RMD. Thus, taxpayers can avoid the tax bite on QCDs with no effect on taxable income. The net result is you can take advantage of the higher standard deduction and avoid taxes on QCD amounts.
You can make a difference.
Your community foundation can help you connect to the causes you care about most. You can set up a charitable fund in your name or make an unrestricted gift. Giving is one of life’s pleasures; we can help you enjoy it today.
There is a better way to give to charity and pay less in taxes – a qualified charitable distribution! You have the ability to direct up to $100,000 of your required distribution amount straight to qualified charities (those recognized by the IRS under Section 501(c)(3)). While the IRS does not allow donors to make a qualified charitable distribution directly to your own donor-advised fund, you can donate to unrestricted funds including including Hudson NOW Fund or Hudson FOREVER Fund, and that amount will NOT be included in your taxable income for the year. Support your favorite OCCF Charitable Fund today by making your year-end gift before December 31, 2023.
Here are great ways to turn your IRA into charitable-giving solutions and avoid taxes on qualified amounts you are required to take as an RMD:
Designated Fund—Helping organizations sustain and grow.
Support the good work of a specific nonprofit organization— any qualifying nonprofit charitable organization—by creating a specially Designated Fund. The community foundation will invest your gift for long-term growth and issue grants to your favorite nonprofit on a regular basis.
Scholarship Fund— Investing In Tomorrow's Leaders
Scholarship funds provide donors the opportunities to offer financial support to students studying anywhere in America.
Hudson NOW or FOREVER Community Funds—Meeting ever-changing community needs.
Address a broad range of current and future needs. Hudson Community Foundation evaluates all aspects of community well-being—arts and culture, education, historical preservation, health and human services—and awards strategic grants to high-impact projects and programs.
Field of Interest Fund—Connecting personal values to high-impact opportunities.
Target gifts to the cause most important to you: arts, education, neighborhood revitalization, youth welfare and more. Hudson Community Foundation awards grants to community organizations and programs addressing your special interest area.
If you are not ready or able to take advantage of lifetime charitable gifts using your IRA, you may also consider making your donor advised fund (DAF) or any of the HCF Funds described above as beneficiaries of your IRA upon your death. IRA proceeds are taxable to your individual beneficiaries when they are required to withdraw them following your death (typically they must withdraw all funds within 10 years of your death), so they will only receive a fraction of what is in your IRA. By naming your DAF or an HCF Fund as the beneficiary, the entire balance of your IRA will go to charities that you support.
Assigning your DAF or HCF Fund as a beneficiary of your IRA is easy. Our team is here to assist you to understand your options and answer your questions. Contact Us Today!
The net result is you can take advantage of the higher standard deduction and avoid taxes on QCD amounts.
“You’ll be giving while your living!”
There is so much more we’d like you to know.
To learn more, contact Amy Jordan at amyjordan@myhcf.org