Q. Can I make a YWCA gift directly from my individual retirement account (IRA)?
A. If you are older than 70 1/2, you are required to take minimum annual distributions from your IRA. You can choose to make a charitable gift of any portion of these funds directly from your retirement account to an organization like YWCA Walla Walla.
Q. Are there tax advantages to donating from my IRA?
A. The attraction is you don’t have to pay income taxes on the amount donated.
Q. Can I take a charitable tax deduction on the gift as well?
A. There is not a tax deduction on the amount of a direct gift from your individual retirement account.
Q. Who would benefit from making this kind of gift?
A. A direct gift from an IRA is typically appropriate for people with fairly high net worth who want to reduce their taxable income and also make a significant donation to a charitable organization. Before making any substantial donation of personal assets to a charity, it is always a good idea to explore the tax implications with your tax advisor.
Jim McCarthy is a Financial Advisor and Senior VP with E.K Riley Investments and a longtime friend of YWCA Walla Walla. Your personal financial advisor can help determine what means of giving is best for you.