Are you 70.5 or older? Then this year, you’re eligible to support the causes you love, tax-free.
When many of us consider donating to the causes we care about most, we often think of donating cash—in other words, transferring funds straight from our savings accounts. But more and more, folks over 70.5 are choosing a more efficient, tax-advantageous way to give: donating directly from their IRAs.
In 2021, IRA donations (in tax-speak, qualified charitable distributions, or QCDs) can offer you even more benefits, and they’re simpler than ever to make. Here’s what you need to know about IRA giving this year:
Last year’s CARES Act waived the required minimum distribution (RMD) for 2020, but it is back in effect in 2021. Giving from your IRA is a simple and impactful way to reach your minimum.
Funds withdrawn from your IRA—even to meet your RMD—count toward your annual income, which increases your overall tax burden. IRA gifts are still the tax-savvy exception to this rule: they aren’t recognized as income and reduce your future tax bill.
Time to leave the paperwork in the past. You can now create your gift online in just a few minutes and hit send.
Since QCDs aren’t recognized as income, the nonprofits you’re supporting will also reap the tax benefits of IRA gifts. They will receive the full amount of your transfer, tax-free. IRA giving is one of the fastest-growing types of donations because of these immediate mutual benefits. And with GlobalGiving, you can donate to thousands of nonprofits working in 170+ countries through your IRA.
Wondering where to get started on an IRA gift? In the past, making a QCD was a complex process involving contacting your financial custodian and wrangling the correct paperwork. But at GlobalGiving, we believe that donating to the causes you care about should be simple. So we have partnered with FreeWill to make IRA giving easier and more accessible than ever.
Start your IRA gift in just a few minutes online—no printing, hefty paperwork, or fees required.
This article is provided as a resource but does not constitute tax advice.
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