With the holiday season on us, now is the perfect time to think about the various ways you can donate to Women In Distress. You can make a powerful impact with a Qualified Charitable Distribution (QCD) or appreciated stock gift before the end of the year.
Qualified Charitable Distribution (QCD) formerly known as an IRA Charitable Rollover
At age 70½ and older, the IRS allows you to make Qualified Charitable Distributions (QCDs) from your IRA up to $100,000, which may be a larger gift than you normally could be able to do. If you turn 73 during 2023 or are older, with the passage of the Secure Act 2.0 in 2022, the IRS requires you to take a minimum distribution each year, even if you don’t need the income. This additional taxable income may push you into a higher tax bracket and possibly reduce your eligibility for certain tax credits and deductions. A QCD may help you avoid or reduce the impact of the required minimum distribution income while making a huge impact on survivors of domestic violence.
How to make a Qualified Charitable Distribution (QCD) to Women In Distress
- Women In Distress is a qualified charity, 501(c)(3), and is eligible to receive Qualified Charitable Distributions. Distributions must be made directly from either a traditional IRA, inherited IRA, inactive Simplified Employee Pension (SEP) plan, or an inactive Savings Incentive Match Plan for Employees (SIMPLE) IRAs (these are accounts that no longer receive employer contributions), always consult with your advisors to ensure you can achieve the maximum benefits.
- According to the tax code, certain charities are not eligible to receive qualified charitable distributions, including donor-advised funds, private foundations, and supporting organizations. Donors are also not allowed to benefit from their qualified charitable distribution, so using the funds to take part in a charity event or to sponsor an event would not qualify.
- Your IRA custodian can either send a check directly to Women In Distress or give the check to you to deliver to us. Donations must be made by December 31 to count toward this year’s taxes and up to April 1, 2024, in certain cases if you turn 73 during 2023.
Can a qualified charitable distribution satisfy my required minimum distribution from an IRA?
- Yes, your qualified charitable distributions can satisfy all or part of the amount of your required minimum distribution from your IRA. You should always check with your advisor or tax consultant before any decision.
- Tax laws are subject to change, so be sure to consult with a tax professional before making your Qualified Charitable Distribution.
- Please contact Michael Barron, Director of Major and Planned Gifts at mbarron@womenindistress.org
Appreciated Stock Gifts
Another way to make a charitable donation and possibly avoid some capital gains on appreciated stock (owned for one year or more) is to donate those stocks directly to Women In Distress. According to many investors, donating stock directly to a charity is one of the most tax-smart ways to give. Yet, it is often not well understood or widely used.
According to a study by Fidelity Charitable, 80 percent of donors own appreciated assets, such as public stocks, mutual funds or bonds, but only 21 percent of those donors have contributed these types of assets to charity.
The benefits may be quite striking:
- You can give more (up to 20% more than if you sold the stock, paid capital gains, and gave cash)
- You may reduce your immediate or future capital gains burdens
- You can review and adjust your portfolio at the same time
- You can donate stock quickly and easily
As with all investment decisions, you should review your options with your tax or financial advisors before making any decisions.
To make a stock gift to Women In Distress, please contact Jeff Metcalf, Chief Development Officer, at jmetcalf@womenindistress.org or 954-760-9800 ext. 1280 for exact instructions to give your advisors.
As always, thank you for your support of our survivors, especially during these holiday times.
