Donate IRA Distributions to MHS
A Tax-Saving Way to Help the Michigan Humane Society
Do you love supporting neglected and homeless animals but want to keep a close eye on your disposable income? Is saving animal lives and saving on your tax bill important to you?
If you are at least 70½ years old, you can take advantage of a simple way to benefit the Michigan Humane Society and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charity, such as MHS, without having to pay income taxes on the contribution. This popular gift option is commonly called an IRA charitable rollover, but it may also be referred to as a qualified charitable distribution, or QCD.
With the passage of the Protecting Americans from Tax Hikes (PATH) Act of 2015, this legislation no longer has an expiration date, so you are free to make annual gifts to qualified non-profit organizations, like MHS, this year and well into the future. Please remember, the funds must come to MHS directly – if they are distributed in your name and then given to MHS, there would be tax implications.
(If your birthday is in mid to late June and you are making your first QCD, please remind your advisor about the importance of speed in processing your request for it to apply to the current tax year.)
Why Consider This Gift?
- Your gift will go to work right away to make a difference for homeless, neglected and abused animals in our community who urgently need your help, allowing you to see the difference your donation will have in the lives of at-risk animals.
- You will pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
- If you have not yet taken your required minimum distribution for the year, your IRA charitable rollover gift can satisfy all or part of that requirement.
Frequently Asked Questions
I’ve already named the Michigan Humane Society as the beneficiary of my IRA. What are the benefits if I make a gift now?
By making a gift this year of up to $100,000 from your IRA, you will see your philanthropic dollars at work. You will jump-start the legacy you wish to leave to MHS and give yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $100,000 or less for the year.
I’m turning age 70½ in a few months. Can I make this gift now?
No. The legislation requires you to reach age 70½ by the date you make the gift.
I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
Yes. Direct rollovers to a qualified charity can only be made from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plans into an IRA and then make the transfer from the IRA directly to the Michigan Humane Society. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.
Can my gift be used as my required minimum distribution under the law?
Absolutely! If you have not yet taken your required minimum distribution, an IRA charitable rollover gift will satisfy all or part of that requirement. Contact your IRA custodian to complete the gift.
When do I need to make my gift?
We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 20 in order to give MHS time to process your gift before the end of the year.
Do I need to give my entire IRA to be eligible for the tax benefits?
No. You can give any amount under this provision, as long as it is $100,000 or less this year. If your IRA is valued at more than $100,000, you can transfer a portion of it to fund a charitable gift.
I have two charities I want to support. Can I give $100,000 from my IRA to each?
No. Under the law, you may give a maximum of $100,000. For example, you can give each organization $50,000 this year, or any other combination that totals $100,000 or less. Any amount of more than $100,000 in one year must be reported as taxable income.
My spouse and I would like to give more than $100,000. How can we do that?
If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $100,000 from his or her IRA.
MHS strongly encourages you to consult with a tax professional if you are contemplating a charitable gift under the extended law. Please feel free to contact Paula M. Rodriguez-Durant at 248-283-5633 or firstname.lastname@example.org with any questions you may have.
The information on this website is not intended as legal or tax advice; for such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.