Got an IRA? Support Your Church While Maintaining Income Tax Advantages

•

Did you know that charitable giving through your IRA may help you save on taxes while providing support to the Unitarian Church of Baton Rouge?

If you are 70½ or older and have an Individual Retirement Account (IRA), you are likely familiar with the option to donate through a Qualified Charitable Distribution (QCD), sometimes referred to as an IRA Charitable Rollover. If this gift is right for you, please consider mailing your QCD gift by December 8 to ensure that it is received in time to be processed before year end.

A QCD makes sense for some people over 70½ as a way to support the church while maintaining tax advantages.

Consider these factors when deciding whether a QCD is right for you:

  • The IRS allows donors 70½ or older to transfer up to $100,000 directly from their IRA to charity each calendar year.
  • If you must take a required minimum distribution (RMD) from your account, a QCD can be used to meet all or part of your RMD, if you have not already taken it.
  • You pay no income tax on amounts you donate using a QCD. The transfer generates neither taxable income nor a tax deduction, so you can benefit even if you do not itemize deductions on your tax return.
  • You can use a QCD to make an outright gift to the church or to make a payment on an existing pledge.

If you are new to QCDs, be sure to check with your tax and/or financial advisor to evaluate whether giving through a QCD is your best option. If you decide to use this tool for charitable gifts, contact your IRA plan administrator and specify that you want to make an IRA Qualified Charitable Distribution.

If your IRA custodian has given you a special checkbook to write QCD checks yourself, in order to count toward your 2023 required minimum distribution, your check must clear your IRA account no later than December 31, 2023 — so it’s advisable to mail this type of check early. We suggest mailing your QCD check by December 8 to be sure it will arrive on time.

Be sure to notify us about your plans at office@unitarianchurchbr.com if the funds will be sent directly by your IRA plan administrator. Sometimes plan administrators send these gifts without identifying information. Advance notice helps ensure that your gift is properly credited.

If you have any questions about making a QCD gift to the Unitarian Church of Baton Rouge, please contact Donna Yelverton, the Generosity Team’s Planned Giving leader.