IRA Charitable Distribution

A Qualified Charitable Distribution (QCD) is the most tax-efficient gift you can make.

Donating from your IRA or another type of retirement asset to Camp Burton is a great tax saving plan. Funds in an IRA have never been taxed, and when you donate an asset to a qualified charity like Camp Burton, no taxes are taken out at the back end either. This means more savings for you and allowing you to make a larger gift! Additionally, a QCD can help you avoid an increase in taxation by removing income that would otherwise hit your gross annual gross income (AGI). If you are 70½ or older an IRA charitable distribution is an excellent way to partner with Camp Burton!

Benefits of an IRA Qualified Charitable Distribution (QCD)

- Lower your taxable income by fulfilling all of part of your Required Minimum Distribution (RMD)

- Lower the burden of estate tax on heirs

- You can give up to $108,000 each year in QCDs, potentially reducing your future RMDs

The difference between a Required Minimum Distribution (RMD) and Qualified Charitable Distribution (QCD)

A Required Minimum Distribution (RMD) is the portion of your IRA, SEP IRA, or SIMPLE IRA that you are legally required to withdraw yearly after you reach age 73, even if you don’t need or want the funds. These distributions become taxable income, increasing your annual gross income (AGI) and could potentially put you in a higher tax bracket, affect Medicare eligibility, or increase your Social Security income tax rate. You can withdraw more than the minimum requirement, but all funds distributed are included in your taxable income. 

A Qualified Charitable Distribution (QCD), previously called the IRA Rollover, is a giving tool that allows you to send funds directly from your IRA to a qualified charity, like Camp Burton, beginning at age 70 1/2. This distribution can fulfill all or part of your RMD in the tax year it is given and allows the withdrawal to be excluded from your taxable income. QCDs can be made to multiple charities in the same year, allowing you to leverage your IRA to fulfill all of your charitable goals. Additionally, you can send up to $108,000 in QCDs annually, and giving QCDs above your RMD can help you draw down the balance of your IRA and reduce the amount of future RMDs as well as your taxable estate.

How to Give from Your IRA

- Contact your IRA administrator and request a Qualified Charitable Distribution (QCD)

- Provide the custodian with the name and address of Camp Burton and the amount you wish to distribute. 

- Request that your name be included on the memo line or stub of the check.

- Have your IRA custodian mail the check directly to: Camp Burton, 14282 Butternut Rd, Burton, OH 44021

Don’t Forget

When you file your annual taxes, use the IRS Form 1099-R to report the QCD.

Keep track of the donation date and amount.

For more information and assistance in IRA Charitable Distributions and other non-cash gifts contact Ben Lee at In His Steps Foundation, [email protected], 330-528-1785.