IRA Charitable Giving Options through The Dayton Foundation

Are you over the age of or approaching 70 1/2? Did you know that the PATH Act of 2015 made permanent the Qualified Charitable Distribution (QCD), which allows you at age 70 1/2 to give up to $100,000 from your traditional IRA to a 501(C)(3) public charity and not have it show as income. The Dayton Foundation has a few options that could result in substantial tax savings for you. A married couple with two separate IRA’s may take up to $200,000 tax free annually. Even with the passage of the SECURE Act of 2019, which pushed the age for the Required Minimum Distribution (RMD) from retirement accounts to 72, you still are eligible to do a QCD at age 70 1/2.

If you are charitable, have a traditional IRA and are over age 70 1/2, The Dayton Foundation offers several charitable giving vehicles for your QCDs. One of the most popular ways for individuals to use IRA assets is to establish a Designated Fund through the Foundation that will make grant awards to your specific charity or charities. A Field-of-Interest Fund that supports a particular area of interest - such as children, education, the arts, health or the environment - and relies on the Foundation’s expertise to determine where community need is greatest, is another option. Traditional IRA assets also may be used to create a Community Impact Endowment Fund, which enables the Foundation to help address our region’s changing needs by increasing discretionary grants awards and undertaking new initiatives. And finally, transfers may be made to create a Scholarship Fund, which encourages education by providing scholarships to deserving students based upon your suggested academic interest or other criteria.

Each of these charitable giving vehicles can help you simplify your giving and gain significant tax savings. When directing your IRA assets to the Foundation, you may designate the charity, the dollar amount you would like granted and when you’d like to make the grant. We’ll take care of the distributions, saving you time by not having to coordinate multiple gifts to different charities. You also can take the tax break in the year that you need it and spread your donations over multiple years.

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