A Tax Efficient Way to Support our Faith: Give From Your IRA
If you are over the age of 70½ years, you can benefit from a simple way to support your faith community through the Catholic Foundation and receive tax benefits in return. You can give up to $100,000 in any given calendar year from your IRA directly to a qualified charitable institution without having to pay income taxes on the dollars.
This popular gift option is commonly called the IRA Charitable Rollover, but you may also see it referred to as a qualified charitable distribution, or QCD, for short.
Why Would I Donate from My IRA?
- Your gift will start doing good immediately, allowing you to see the difference your donation is making today.
- You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, a qualified charitable distribution (QCD) can satisfy all or part of that requirement.
- Your smart gift provides a significant gift to support a charitable cause important to you.
How it Works:
- Make your gift of up to $100,000 by directly transferring IRA assets to the Catholic Foundation. You must be 70 1/2 years old. If married, each spouse can transfer up to $100,000 from his or her IRA.
- Your gift can be placed into a charitable fund in your name, the name of your family, or in honor of any person or organization you choose. We handle all administrative details.
- Your gift can be placed into an endowment that is invested and will grow over time. It will forever make grants that address community needs.
Choose a Fund:
Although Donor Advised Funds are not eligible to receive QCDs per IRS regulations, the Catholic Foundation has several alternatives for donors to consider:
- Establish a Granting Fund — Focus your faithful gift on a cause important to you. The Catholic Foundation will award grants to programs addressing your specific interest area (e.g. pastoral, health, social).
- Endowed or Designated Funds — Support the work of a specific ministry or organization with long-term income. The ministry will also receive the planned giving and investment management services of the Catholic Foundation.
Frequently Asked Questions
- I’ve already named the Catholic Foundation as the beneficiary of my IRA. What are the benefits of making a gift today? By making a gift this year of up to $100,000 from your IRA, you are jump-starting the legacy and giving yourself the joy of seeing your philanthropic vision come true.
- I’m turning 70 1/2 in a few months. Can I make this gift now? No. The legislation requires you to reach age 70 1/2 by the date you make the gift.
- When do I need to make my gift? We must receive your gift by Dec. 31 for your donation to qualify for this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 15 to ensure time for delivery.
- Contact the Catholic Foundation at 248-204-0332 for additional information on giving an IRA gift.
- Consult with your tax advisor or your IRA administrator. Contact us for a sample letter to your IRA plan administrator.
- Request that your IRA administrator make a direct transfer to the Catholic Foundation or have the administrator send a check from your account to the Foundation.
Legal Name: Catholic Foundation of Michigan
Address: 1145 W. Long Lake Rd. #210, Bloomfield Hills, MI 48302
Federal Tax ID #: 81-4107324
Here at the Catholic Foundation of Michigan, we want to help you give charitably, in a way that is meaningful to you. We work with individuals, couples, and families who want to personally make a difference in the lives of others. If you’re interested in learning more, please reach out!
Consult with your tax planner or financial advisor before making any decisions regarding your IRA account. This information is not a substitute for expert legal, tax, or other professional advice, and we strongly encourage donors to work with your professional advisors to determine the impact of making a QCD on your particular situations.