SPECIAL MESSAGE FOR CHARITABLE ROTARIANS 70.5 & OLDER
Yes, we are still around, lots of us actually.
This year we have a special opportunity to support Rotary in the most TAX EFFICIENT WAY POSSIBLE: The direct contribution of part of our Required Minimum Distribution from our IRA.
As we know all to well, the RMD is taxed as ordinary income. That is not good.
But, if your IRA Custodian is instructed to make a direct contribution of part of your RMD to a recognized 501(C)(3), such as The Rotary Foundation, the charity gets all the money and you don’t pay any taxes. You don’t get a deduction, but you don’t pay any taxes. This is even better than donating appreciated stock.
Unfortunately, you cannot use this program to fund a Donor Advised Fund.
But, you can for example participate in a Global Grant by donating to a Foundation which then becomes a sponsor on the grant. This is also a great tool for time shifting a donation. Donate this year, fund a project next year.
I know this works because I have done it successfully. Ask your accountant.
If you have any questions, please contact me. In addition to The Rotary Foundation itself, we have a qualified District Foundation and several Clubs have qualified Foundations.
This is a great tax efficient way to support Rotary and its programs.
Chuck Musgrave
PDG
District Rotary Foundation Committee Chairman
cmusgrave@cox.net
This year we have a special opportunity to support Rotary in the most TAX EFFICIENT WAY POSSIBLE: The direct contribution of part of our Required Minimum Distribution from our IRA.
As we know all to well, the RMD is taxed as ordinary income. That is not good.
But, if your IRA Custodian is instructed to make a direct contribution of part of your RMD to a recognized 501(C)(3), such as The Rotary Foundation, the charity gets all the money and you don’t pay any taxes. You don’t get a deduction, but you don’t pay any taxes. This is even better than donating appreciated stock.
Unfortunately, you cannot use this program to fund a Donor Advised Fund.
But, you can for example participate in a Global Grant by donating to a Foundation which then becomes a sponsor on the grant. This is also a great tool for time shifting a donation. Donate this year, fund a project next year.
I know this works because I have done it successfully. Ask your accountant.
If you have any questions, please contact me. In addition to The Rotary Foundation itself, we have a qualified District Foundation and several Clubs have qualified Foundations.
This is a great tax efficient way to support Rotary and its programs.
Chuck Musgrave
PDG
District Rotary Foundation Committee Chairman
cmusgrave@cox.net