More ways to give this fall!
Looking for another great way to support Samaritan House? Good news: if you are over 70 1/2 years old and need to take a Required Minimum Distribution from your retirement account each year, you can instead donate the distribution to Samaritan House and pay no taxes on that additional income! This is a great way to donate without dipping into other reserves you may need this year!
What is an RMD?
Current law requires that a percentage of funds be withdrawn from an individual’s retirement plan or IRA account each year. If the minimum funds aren’t withdrawn, a hefty tax is applied. The withdrawal is then added to your income and taxed accordingly – but there is an exception: you can turn your RMD into a Qualified Charitable Distribution (QCD) by donating it to a charity of your choice, up to $100,000, and you will not be taxed on the income! All donations made by December 31st will qualify for the tax break in 2022.
Your RMD is calculated based on the balance of your IRA as of December 31st of the previous year, so you may have even more assets to withdraw this year than you thought! At a time when Samaritan House is again seeing peak pandemic levels of need in our critical programs, we ask for your help again in supporting our neighbors.
Planning for the future:
The provision for tax-free distributions from IRAs to charities like Samaritan House was made permanent in December 2015 through the Protecting Americans from Tax Hikes (PATH) Act, which makes QCDs a great way to begin thinking about your longer term philanthropic plans.. We encourage you to discuss the impact you want to have with your financial advisor and begin making plans for this year and into the future! Note: be sure to withdraw your money directly as a QCD made payable to the charity of choice in order to avoid getting taxed on the withdrawn money.
Did you know that 70% of our funding comes from private donations, and 89% of our income goes directly to our programs? Thanks to your generous support, we leveled-up our services over the last three years to meet the critical demand for food, shelter, and financial assistance brought on by the COVID-19 crisis. With your continued generous support, there’s so much more we can do for our neighbors.
- What accounts are eligible for QCDs?
- Most IRAs, including Traditional IRAs, Inherited IRAs, SEP IRA (inactive plans only*), and SIMPLE IRA (inactive plans only*)
- Are all nonprofits eligible for donations?
- For the most part, though there are some exceptions, such as donor-advised funds and private foundations. Consult your financial advisor before making a QCD.
- Can my spouse and I both make a QCD?
- Yes! If you file taxes jointly, both you and your spouse can make a $100,000 QCD from your individual IRAs.
- What is the minimum age again?
- The IRS requires RMDs be taken each year once you turn 72 ( or 70 ½ if you turned 70 ½ in 2019 or earlier). The age requirement for the RMD may shift for future generations, as Congress considers the Secure Act 2.0. However, the basic concept will remain the same, making this a great avenue for donating while receiving a tax incentive, and planning for the future!
Samaritan House is a 501(c)(3) organization. Federal Tax I.D. number: 23-7416272. All donations are tax deductible as permitted by law.