How To Use An IRA To
Support Local Charities

Source: c-George from Getty Images 

Are you looking for a way to give back to the community? Your IRA donations could be a great way to make a difference. Not to mention, IRS donations offer numerous tax benefits you can take advantage of if you decide to donate. Let’s go through how these types of donations work and how to get started. 

IRA Charitable Donations Explained 

An IRA charitable rollover lets you make donations straight from an Individual Retirement Account (IRA) to your favorite cause. If you’re 70 ½ or older, you have the option to transfer up to $108,000 per year without it counting as taxable income. This type of giving also helps you meet your Required Minimum Distribution while supporting a charitable organization you care about.  

Because your funds are transferred directly from your IRA account to the charity, you don’t pay income tax on withdrawals. It’s a quick and easy way to turn a part of your retirement savings into real community impact.  

How To Get Started 

If you’re planning on donating from your IRA, you need to contact your IRA plan administrator to make a gift from your account to the charity of your choice. This is the most crucial step because sending the funds directly ensures you’re eligible for a Qualified Charitable Distribution (QCD), which reduces your tax liability.  

After you put in the request, your IRA funds go directly to the organization. This money helps them support valuable programs and services that help the local community.  

While rolling charitable donations are popular options, you can also donate through: 

• Naming a charity as a beneficiary in your will 

• Using withdrawals for giving  

• Creating a charitable trust or gift annuity 

• Making a one-time donation  

Every IRA Gift Matters 

When you donate to LI Cares through your IRA, every dollar goes directly toward supporting hungry families around Long Island. Your gift helps us expand our outreach, buy more pantry supplies, and support essential programs to fight food insecurity. Even a modest donation can make a difference to thousands of families.  

If you want to learn more about IRA donations, we’re here to help. We’re here to guide you through the steps of making a Qualified Charitable Distribution or other IRA gift to our cause. Together, we can turn your retirement savings into lasting change for families in need. Please contact us online or at 631-582-FOOD to get started.