WHAT: You may make a contribution to the Friends of the Historic Carleton Airport by giving a portion of your IRA to us. The Internal Revenue Service calls it a “Qualified Charitable Distribution.”
WHY make a Qualified Charitable Distribution? Are you older than 70 ½? Maybe you are in the enviable position of having money you don’t expect to need in your Individual Retirement Account (IRA)? You can donate up to $100,000.00 from IRA accounts directly to charities every year. The Internal Revenue Service calls it a Qualified Charitable Distribution. Your direct-from-the-IRA donation is not included in your IRS taxable income. If you are required to take IRA distributions, the amount you give in Qualified Charitable Distributions counts towards your yearly Required Minimum Distribution. (Note: If you have already taken your entire Required Minimum Distribution (RMD) from your IRA this calendar year you can still make Qualified Charitable Distributions. However, they will be in addition to your taxable RMD withdrawals.)
What’s the advantage of Qualified Charitable Distributions? Perhaps you will be taking a “standard deduction” on your tax return. Your overall charitable giving may not be enough to impact your tax bill. Giving money to a charity via a Qualified Charitable Distribution makes the donation tax free to you. This advantage is available to anyone over 70 ½, even if you do not yet have to take a Required Minimum Distribution from your IRA. If you are in RMD-territory, donating money via a Qualified Charitable Distribution reduces the taxable amount of your Required Minimum Distribution. Under the right circumstances, making a Qualified Charitable Distribution might keep your taxable annual income below that which triggers a Medicare part B & D surcharge.
HOW: If you wish to make a Qualified Charitable Distribution to us, ask your IRA custodian for instructions. The tax law allows you to make as many Qualified Charitable Distributions as you wish to as many charities as you’d like. The total per year must not exceed $100,000. The donation has to come from the IRA custodian directly to the charity without passing through your hands.
NOTE: It is very important that the distribution be made directly from the IRA custodian to the charity of your choice. If the money passes through your bank account you won’t get the benefits described above.
Our experience has been that it usually works this way: You fill out a request for a Qualified Charitable Distribution with the business that holds your IRA. The IRA custodian writes a check to the Friends of the Historic Carleton Airport. The IRA custodian sends the check (made out to the Friends of the Historic Carleton Airport) to you. You send the Qualified Charitable Distribution check to us. We say THANK YOU!
TECHNICAL INFORMATION: This link to the IRS website gives more information.
https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals
Friends of the Historic Carleton Airport
3925 30th Avenue South
Minneapolis, MN 55406
Vicki Chouinard, Secretary/Treasurer – 612-724-6009
FriendsOfTheHCA@gmail.com
Federal Tax ID number: 81-4594141
We are an IRS 501(c)(3) charitable organization incorporated in the State of Minnesota