Did you know there are several ways to donate to your favorite charities, while receiving tax benefits?
Below, you will find information about:
- Qualified Charitable Giving (QCD)
- Donor Advised Funds (DAF)
Qualified Charitable Giving
Use your existing IRA distribution to guide people to Christ!
If you are 70½ years old or older, you can take advantage of a simple way to receive tax benefits while helping Pilgrim Center of Hope.
By making a qualified charitable distribution, you can give up to $100,000 from your IRA directly to Pilgrim Center of Hope or other qualified charity without having to pay income taxes on your gift.
What is a Qualified Charitable Distribution (QCD)?
As defined by the IRS, “Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over that is paid directly from the IRA to a qualified charity.”
QCD transfers can made only directly by the trustee of your IRA to an organization eligible to receive tax deductible contributions. Personally withdrawing the funds and then donating them to the nonprofit will not result in special tax benefits to the donor. QCDs can satisfy all or part of the amount of your required minimum distribution (RMD) from an IRA, and 100% of your gift will benefit the charitable organization you support.
What is a Required Minimum Distribution (RMD)?
If you are 70½ years old or older, the IRS requires you to start making withdrawals from most types of tax-advantaged retirement accounts. Individuals who have IRA’s are obligated to take a required minimum distribution (RMD) each year; the RMD is the minimum amount that he or she must withdraw from their account each year.
You must also take RMDs from retirement accounts you inherit. For most people, the deadline for taking an RMD is December 31. If you miss the deadline or take less than you’re supposed to, you could be subject to a tax penalty.
How does making a Qualified Charitable Gift help you?
Any amount processed as a QCD counts towards your RMD requirement and reduces the taxable amount of your IRA distribution, which lowers both your adjusted gross income and taxable income, resulting in a lower overall tax liability. And, if you direct your QCD to Pilgrim Center of Hope, it helps you respond to God’s call of guiding people to Christ!
How does making a Qualified Charitable Gift help Pilgrim Center of Hope?
Because we can put your gift to use right away, it will help PCH’s current evangelization efforts as we share the message of hope and peace and create encounters with Christ. Since 1993, this vital ministry has been reaching hundreds on a weekly basis. You will get to see your generosity in action!
If you are ready to direct a portion of your RMD as a charitable donation to Pilgrim Center of Hope, simply inform your financial advisor or IRA administrator. PCH’s tax ID is 74-2670987.
Distributions can be mailed to:
Pilgrim Center of Hope
7680 Joe Newton
San Antonio, TX 78251
Need more information before making a decision? Contact your IRA administrator or tax preparer or call us here at Pilgrim Center of Hope at 210-521-3377. The form below may also be used to reach us.
NOTE: This information is not intended as legal or tax advice. Please consult an attorney or tax advisor for more information about these options and for specific recommendations.