How to donate part of your IRA required distribution to the Northern Center, tax-free

After you reach age 72, there are required minimum distributions (RMDs) from your Individual Retirement Accounts (IRAs). Individuals over age 70½ (actual) can give to charity directly from an IRA, without counting the distribution as taxable income. This is called a Qualified Charitable Distribution (QCD). 

Requirements for a QCD:

  • It must be transferred directly from your IRA to the charitable institution. Your financial  institution will have a form to fill out to request a QCD. (If you have the money sent to yourself, it will count as a taxable withdrawal instead of a QCD.)
  • It must come from your Traditional IRA or from an inherited IRA where the beneficiary is over the age of 70½.
  • The charitable institution must give you a receipt stating that no goods or services were received in exchange for the gift (the Northern Center will do this).
  • You can give up to $100,000 per year directly to a charity.

Benefits of a QCD:

  • The amount withdrawn as a QCD does not count as part of your Adjusted Gross Income (AGI), so you aren’t taxed on it.
  • You get the tax benefit of charitable giving even if you don’t itemize your deductions.
  • You can count the amount of the QCD as part of your required minimum distribution, and you can split it between multiple charities.
  • Normally, charitable giving can only be deducted if it is less than 50% of your AGI. Giving directly from your IRA allows you to effectively reduce your AGI even if the gift amount would otherwise be greater than 50% of your AGI.

How to make a QCD:

  • Ask your IRA financial institution for their QCD form. You’ll fill that form out and give it back to them, and they’ll send the funds directly to the Northern Center.
  • You’ll need this for the form: the Northern Center’s tax number is 23-7438038

To pay with a check:

Have your financial institution make the check out to:

Northern Alaska Environmental Center

830 College Rd. 

Fairbanks, AK 99701-1535

Or, to wire funds: please contact our office manager at 907-452-5021 or email officemanager@northern.org for more information.

Please let the Northern Center office know to expect the donation, so we can check and make sure it comes through.

THANK YOU!

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