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- The amount withdrawn as a QCD does not count as part of your Adjusted Gross Income (AGI), so you aren’t taxed on it.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 email@example.com for more information.
Please let the Northern Center office know to expect the donation, so we can check and make sure it comes through.