- Donate directly from your Individual Retirement Account (IRA), Pension Fund or Retirement Fund for tax benefits and higher charitable impact, quickly and easily. Please contact your tax advisor or attorney for more information as you are developing your QCD plans to preserve and protect the Sawtooth National Recreation Area.
- Whether you want to make a QCD gift to the Sawtooth Society today, or just learn more about QCDs, you can find resources here.
Why Qualified Charitable Distributions might be for you?
- If you’re over 72 years old or older, making a Qualified Charitable Distribution (QCD) is a great option to lower your income taxes while doing good for others. QCDs count toward your Required Minimum Distribution (up to $100,000), effectively lowering your adjusted gross income and bringing about many tax benefits.
What are the benefits?
- QCDs reduce your taxable income. Normally, funds that are withdrawn from a Traditional IRA count toward your annual income, which will increase your overall tax burden. In some cases, this increase may also move you into a higher tax bracket. However, QCDs are an exception to this rule—funds go directly from your IRA to your chosen charitable organization without needing to be included in your income for tax purposes, thereby helping you avoid higher income taxes.
QCDs satisfy Required Minimum Distributions
- Required Minimum Distributions (RMDs) are amounts that you must withdraw annually from your Traditional IRA once you reach a certain age. As of Jan. 1, 2020, this age is 72.
- If you do not withdraw your RMD, you will face a penalty tax of 50% of the required withdrawal amount. QCDs can be used to meet this RMD requirement and avoid penalties.
- Read more about RMDs on the IRS website HERE
QCDs maximize your charitable impact
- Because QCDs do not need to be recognized as income, charitable organizations receive the full amount of the transfer tax-free. It’s a win-win situation that both supports you and the Sawtooth Society
- The Charitable IRA Rollover allows you to make a direct distribution from your IRA account to support the Sawtooth Society’s work to preserve, protect and enhance the Sawtooth National Recreation Area.
Reminders for QCD’s:
- You must be 72 years or older at the time of the distribution from your IRA to qualify.
- At age 72 or greater your gift distribution qualifies toward your calendar year required minimum distribution (RMD).
- Your total non-taxable yearly distribution to one or more qualified 501c3 charities, including the Sawtooth Society is limited to $100,000 each calendar year.
- You will need to contact your IRA plan administrator and request they distribute the rollover amount directly to the sawtooth society. Please use the attached form to request a transfer.
- The check issued from your IRA must be made payable to the Sawtooth Society, Inc.
Please contact Kathryn Grohusky, Executive Director of the Sawtooth Society if you would like to be acknowledged for the gift. Many plan administrators will not include information on who is making the gift unless specifically requested.
The transfer of your IRA distribution must be made directly by your plan administrator to the Sawtooth Society by December 31 to qualify for that tax year.