IRA charitable distribution: Donate an IRA to charity
If you are over age 70½, you may give a qualified charitable distribution from an individual retirement account and potentially receive tax benefits
Is donating an IRA to charity tax deductible?
Because charities do not pay income taxes on the donations they receive, distributions to charities will avoid being taxed as income. Donating part or all of your unused retirement assets, such as your individual retirement account (IRA), is an excellent way to make a contribution to a charity like St. Jude.
How does a qualifed charitable distribution work, and what qualifies as a charitable IRA rollover?
If you are over age 70½, you may give a gift from your IRA as a tax-free distribution to a qualified charity. This means an amount (up to $100,000 annually) transferred from your IRA directly to a charity like St. Jude can count toward your required minimum distribution without being considered taxable income for you. The deduction then lowers your adjusted gross income (AGI). The distribution, also known as an IRA Charitable Rollover, is authorized by Section 408(d)(8) of the Internal Revenue Code.
As a qualified charitable IRA rollover, the gift must be transferred from a traditional IRA directly to a qualified public charity like St. Jude and must be completed during the applicable tax year.
St Jude must receive your gift by Dec. 31 for your IRA charitable distribution to qualify for that tax year.
Can a charity like St. Jude be the beneficiary of my IRA?
A beneficiary can be any person or entity, such as St. Jude, the owner chooses to receive the benefits of a retirement account or an IRA after the owner's lifetime. Make your IRA part of your legacy, and learn more about legacy giving at St. Jude to see the special way we honor your generosity.
As always, please consult your advisor to determine if this type of gift is right for you.
Can an IRA donation to charity count toward my required minimum distribution (RMD)?
A donation transferred directly from your IRA to St. Jude, or another qualified charity, is not considered taxable income on your federal income tax return, but it does count toward your required minimum distribution (RMD). You can donate your RMD to charity starting in the year you turn 72. Your gift can be used to satisfy all or part of your RMD.
You can contact your IRA administrator and ask them to make a QCD. Download a sample Letter of Instruction to get started gifting to St. Jude.
Why St. Jude?
Families never receive a bill for treatment, travel, housing or food — so they can focus on helping their child live.
Treatments invented at St. Jude have helped push the overall childhood cancer survival rate from 20% to more than 80% since it opened in 1962. St. Jude won't stop until no child dies from cancer.
St. Jude shares its discoveries with doctors and scientists in your community and around the world, so every child saved at St. Jude means thousands more children are also saved.
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We are a tax-exempt, charitable institution listed in the Federal Internal Revenue Service Publication #78, "Cumulative List of Organizations," revised IRS Code 501(c)(3).
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Our Gift Planning department has a representative in your area who can provide further information for making a qualified IRA charitable distribution or help you prepare the right questions to ask your financial advisor to determine what type of planned gift may be right for you. Email firstname.lastname@example.org, call (800) 395-1087, or fill out the form below, and a St. Jude representative will contact you.