Make A Donation From Your IRA

We often get asked about making donations to the Eugene Parks Foundation from an IRA account. It is possible. However, when and how you donate from an IRA account is important. There are two primary ways in which people donate from their IRAs, by bequeathing your IRA Account to the Foundation when you pass or by making a Qualified Charitable Distribution. Below is a more detailed description of each.

• Bequeathing Your IRA: It’s easy to designate the Eugene Parks Foundation as a beneficiary of your IRA (or any retirement account). You can obtain a Designation of Beneficiary Form from the financial institution that holds your IRA or retirement account and complete as directed. Keep in mind, you can designate the Eugene Parks Foundation to receive your entire account or only a portion.

• Make a Qualified Charitable Distribution: Often referred to as a QCD, a Qualified Charitable Distribution is a direct transfer of funds from your IRA custodian, payable to a qualified charity.  Unlike a regular distribution from an IRA, amounts donated from your IRA using a QCD are not taxed as income to the owner. In addition, QCDs can be counted toward satisfying your required minimum distributions (RMDs) for the year, as long as certain rules are met. While many IRAs are eligible for QCDs—Traditional, Rollover, Inherited, SEP (inactive plans only), and SIMPLE (inactive plans only)*—there are requirements: You must be 70½ or older to be eligible to make a QCD. The maximum annual amount that can qualify for a QCD is $100,000. For a QCD to count towards your current year’s RMD, the funds must come out of your IRA by your RMD deadline, generally December 31. Additional rules and stipulations may apply, so please consult with your accountant to verify you qualify for a QCD before making a donation.