Individuals who must make annual required minimum distributions (RMDs) from traditional IRA accounts, can make qualified charitable distributions (QCDs). These withdrawals may be given directly to a qualifying charity such as HOPE Network Ministries (up to $100,000 annually) to minimize taxes. The QCD is not a taxable distribution and as such there is no charitable tax deduction. As always, see your tax professional for more specifics.
If you are interested in making a charitable donation to HOPE Network Ministries from your traditional IRA account, you can accomplish this by contacting your IRA account holder. If you have any questions, please feel free to contact Grady King at firstname.lastname@example.org.
MORE DETAILS ABOUT BENEFITS OF DONATING STOCKS
Stock Giving is the Most Tax Efficient Way to Give
US tax law generally categorizes stock held for investment as a capital asset. When an investor purchases a capital asset, including stock, the amount paid creates the cost basis for the investment. If the fair market value of the stock increases over time, the difference between the fair market value and the original cost basis, known as a capital gain, will be taxed when the stock is eventually sold.
When donors give appreciated stock, the shares are transferred from the donors’ brokerage account directly to the nonprofit’s brokerage account. If the receiving organization is a qualified 501(c)3 charitable organization and the donor has held the stock for more than one year, the donor does not have to pay tax on the capital gain. In addition, the full value (or fair market value) of the donated stock is the amount of the charitable donation donors can claim on their individual income tax return. Contact your tax professional for more specifics.