Since being introduced in 2006, the charitable IRA rollover has become a favorite of philanthropic taxpayers who have embraced the opportunity to transfer up to $100,000 each year to charity without it being treated as a taxable distribution (the donor does not recognize the transfer as taxable income on his or her tax return). Qualified charitable distributions must be made as direct gifts to Lightways and not as planned gifts.
An IRA charitable contribution allows you to meet your Required Minimum Distribution (RMD) without adding to your taxable income. This can potentially keep you in a lower tax bracket.
Requirements and restrictions for making a charitable IRA rollover gift are:
- The donor is age 70½ or older on the day of the gift.
- The donor transfers up to $100,000 directly from the donor’s IRA to one or more qualified charities. This opportunity applies only to IRAs and not to other types of retirement plans.
- The donor pays no income tax on the gift. The transfer generates neither taxable income nor a tax deduction, so donors benefit even if they do not itemize their tax deductions.
- The gift can satisfy all or part of the required minimum distribution for the year.
- The gift may not be used to fund a gift annuity, charitable remainder trust, donor advised fund or private foundation.
- The donor does not receive any goods or services in return for the rollover gift in order to qualify for tax-free treatment.
To make a gift:
For a qualifying transfer, contact your IRA administrator or financial adviser. Rollover gifts can be sent to:
250 Water Stone Circle
Joliet, IL 60431
Contact the Lightways Development Office at 815-740-4104 for more information.
Joliet Area Community Hospice doing business as Lightways Hospice and Serious Illness Care is a tax-exempt, non-denominational charitable organization with a 501(c)(3) classification. (Tax ID number 36-3191281.) Therefore, your gifts are tax-exempt to the fullest extent allowed by law.