Donating through Your IRA
An Individual Retirement Account (IRA) is a wonderful way to build a nest egg for your retirement. It's also a great vehicle to make a charitable gift and realize tax savings, even if you don't itemize your deductions.
Eligibility
You can take advantage of the tax savings from an IRA charitable rollover or qualified charitable distribution if you are at least 70 1/2 years old and have an IRA account.
Why Give from an IRA?
Save Your Cash
An IRA is a great way to fund your philanthropy. You can support a charitable mission that's important to you without affecting your checking or savings account balance.
No Income Tax
When you donate from your IRA, you are giving away money that has never been taxed, completely tax-free!
Satisfy Your RMD
Once you reach age 73, you have to take out a required minimum distribution (RMD) from your IRA each year. If you don't really need your RMD for personal use or don't want it to increase your taxable income, donate it directly to a charity instead.
Help Your Heirs
IRAs are one of the most heavily-taxed assets you can leave to your children. Under the SECURE Act, they will only have 10 years to withdraw the full amount, which can create a heavy tax burden for them. By reducing the size of your IRA, you can reduce those taxes.
Gift Limit
Individuals who are 70½ or older can donate up to $100,000 from their IRA to nonprofits like St. Paul's annually. For couples with separate IRAs, they can each gift up to $100,000 for a total of $200,000.
New in 2023!
Use Your IRA to Start a Life Income Gift
You can now use an IRA charitable rollover to start a charitable gift annuity (CGA) or a charitable remainder trust (CRT). These are called life income gifts because in addition to benefiting your favorite charity they also provide you with an income for life.
Under the Secure Act 2.0, you are allowed to make a one-time $50,000 distribution from your IRA to start a life income gift. If your spouse also has an IRA, you can pool your gifts into a joint $100,000 CGA or CRT.
Click here to learn more about charitable gift annuities or charitable remainder trusts.
How to Make a Gift from Your IRA
Ask your IRA administrator to send a check directly to St. Paul's from your IRA account. They will have a simple form you need to complete with this information:
Legal Name: St. Paul Homes
Federal Tax ID#: 25-0773080
Contact: Dawn Hartman, Director of Strategic Giving
Address: 339 E. Jamestown Rd., Greenville, PA 16125
Use the form below to let the Charitable Giving Office know of your upcoming gift so we can let you know when it arrives.
For more information about IRA giving, please contact Director of Strategic Giving Dawn Hartman at 724-589-4611.
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