How IRA deductions can be donated to nonprofits They say charity begins at home, but your charitable dona tions may go further if they never wind up at home or in your bank account. That's because, if you're a senior 70 1/2 or older you could get a great tax break by donating your IRA's minimum required distribution (MRD) directly to a charitable nonprofit or- ganization. Depending on your financial circumstances, this could be a smart way to give generously - while reaping some benefits yourself. How it works An IRA can be a useful way to save for retirement and a valu- able wealth-building tool.And while you've contributed to your IRA account for years so you can reap the benefits later, you may not be ready to take your distributions when required at age 70 1/2. If thats the case, you may benefit from a smart and generous tax benefit contributing your IRA distributions directly from your account to a charitable nonprofit organization, or 50I (c)(3) Since you made contributions to your IRA account on a pretax basis,you'll be required to pay taxes on distributions from that account when you begin receiving them. These distributions increase your taxable income, which may complicate your financial situation. For some, the added income may place the taxpayer into a higher tax bracket. For others, it could be a way to ensure your charitable contributions are tax-free, even if you don't qualify to itemize your deduction n endowment differs from a typical Greene County's IRA QCD packet on donation in that the donations are invested. http://www.cfgcpa.org and proceeds of those investments are then Who should do it? If you don't need it, donate it Stam According to Bettie Stammerjoh munity Foundation of Greene County, any IRA holder over 70 1/2 who donates to a charitable nonprofit stands to benefit from this distributed regularly to the organization of your choosing merjohn said. "It benefits you while doing some good for the community. n, executive director of Com- "We help individuals find ways to share their gifts with the community." Stammerjohn said. "Endowments allow your donated funds to keep giving year after year." A journalism graduate from Brigham Young University, Kristen has experience writing in The typical American household supports five to 10 charitable organizations per year Stammerjohn said. "This is a way to su port those organizations while decreasing your taxable income." variety of fields, including art and culture, health and fitness and financial and real estate Community Foundation of Greene Coun ty endowments also come with a special Additionally, with a new tax plan in effect as of 2018 that dou bles the standard deduction.its possible you'll no longer itemize services. Kristen has written for USA Today, Perk. core oe your deductions the only way to take advantage of the charitable giving deduction. Giving through your IRA distributions allows you to get the same tax break without itemizing your deductions "Since your donations are invested, those SFGate and the Knot. funds just conti f nue to grow. Stammerjohn said. There's no need to write a check every month, and the organization you choose receives a regular income it can count on and This article is brought to you by According to Forbes, the only reason not to take advantage of charitable donations made through your IRA distributions is if you're able to get a greater tax benefit by donating substantially larou appreciated long-term capital gains property. Find out more Making it easy If you're ready to find out more about reducing your taxable income while giving to charity, the Community Foundation of Stammerjohn understands the benefits of gifting through your IRA because she helps community members do it every day. Through the Community Foundation of Greene County, Stam merjohn helps community members create endowments to benefit charitable organizations of their choosing. And for those who qualify, she always recommends those endowments be fund ed through IRA accounts. PA County offers a variety of resources on their website and in their office. For more information on the benefits of individ and nonprofit IRA distribution donations, checkout the Community Foundation of 724-627-2010 108 East High Street Waynesburg.PA 15370