HELP SUPPORT A CHARITABLE ORGANIZATION
Qualified Charitable Distributions (QCD)
A QCD is a direct transfer of funds from your IRA custodian, payable to a qualified charity. While QCDs are not new, the impact of the new tax rule is. With the new higher standard deductions, more taxpayers are not itemizing, so they are no longer able to deduct their charitable contributions on their income tax return.
Those who qualify for QCDs can get both the higher standard deduction and the tax benefit of giving to a charity. The QCD allows the taxpayer to make charitable donations through direct transfer from their IRAs to the charity. This IRA transfer is excluded from income, which is better than a tax deduction.
Excluding the IRA income decreases adjusted gross income, this could decrease the amount of social security income that is included in taxable income. The QCD might also allow more medical expenses to be deductible as an itemized deduction, since the QCD lowers adjusted gross income, and thus, the threshold above which medical deductions can be made.
Many IRAs are eligible for QCDs – Traditional, Rollover, Inherited, SEP (Simplified Employee Pension) (inactive plans only) and Simple (Savings Incentive Match Plan for Employees)(inactive plans only), but as everything else involving the IRS, there are requirements:
- You must be 72 (70 1/2 if you turned 70 1/2 in 2019).
- You must have an IRA or be an IRA beneficiary.
- You must be subject to the required minimum distribution (RMD) requirements of IRAs.
- The funds must come out of your IRA by the RMD deadline, generally 12/31.
- The maximum annual amount that can qualify for a QCD is $100,000 per person.
QCDs CAN NOT be done from a Company plan, like a 401(k) or 403(b). Funds distributed directly to you, the IRA owner, and which you then give to a charity, DO NOT qualify as a QCD.
The charity must be a 501(c)(3) organization, eligible to receive tax deductible contributions. The Estes Park Senior Citizens Center, Inc. is such a charity. Address: 1760 Olympian Lane, Estes park, Co 80517 and Federal Tax ID Number: 84-0721483.
A QCD is reported as a normal distribution on IRS Form 1099-R. There are two boxes on the form, total distributions and taxable distributions. The QCD will satisfy your RMD requirement and will not be included in taxable income. A QCD is not subject to federal withholding.
The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.
The Estes Park Senior Citizens Center is a 501(c)3 non-profit organization. The Senior Center receives funding from our annual membership fees along with generous donations from our membership and local business organizations. We do not receive any tax funding from the Town of Estes Park nor from Larimer County government.
Because the mission of our center is to provide services and programs especially for seniors, we continually strive to keep our membership fees and activity fees as low as possible. A number of individuals and local businesses have stepped forward to help us by contributing funds to our Senior Center. We are forever grateful for the generosity of each and every individual, organization, and business partner that has chosen to play an important role in improving life for our seniors.
There is such a strong legacy of support for the over 42+ years our Center has existed that there aren’t enough words to convey what each and every contribution — whether large or small — means to our senior citizens center.
As budgets are squeezed we obviously need to increase our membership and donations to help fund our activities. We accept monetary donations at any time and these can be designated for a specific purpose upon request. At the present time donations of cash or checks are accepted in person at our Center.
Remember all donations, contributions, sponsorship are tax deductible.
Please remember your Estes Park Senior Citizens Center Inc. 1760 Olympian Lane, Estes Park, CO 80517 in your will. If your Center has meant something special to you please consider donating a portion of your estate and leave your legacy here at the Center. In addition, memorial donations in honor of a member or former member are accepted and arrangements can be coordinated with our board members or staff.
All correspondence, checks, etc. must be sent to:
Estes Park Senior Citizens Center
1760 Olympian Lane, Estes Park CO 80517
Donation form: Donation Form