You may have a new ‘best friend’ after seeing the tax benefits of rolling your IRA over to St. Louis Center.
A tax-saving way to help St. Louis Center.
A Qualified Charitable Distribution (QCD) is a direct transfer of funds from Individual Retirement Account (IRA), payable directly to a qualifies charity, which counts toward satisfying your Required Minimum Distributions (RMD) for the year. A QCD allows individuals in RMD status (70 years old or older under the old law and 72 years old or older under the new law) to donate up to $100,000 total to one or more charities directly from a taxable IRA instead of taking their RMD.
Using an RMD in the manner of going directly from the IRA to the charity can significantly decrease federal and state tax obligations. In most years using a QCD can help keep your taxable income lower, keep your income in a lower tax bracket, and may reduce your potential exposure to the medicare surtax.
IRA RMDs as a QCD
Why consider this gift?
- Your gift will be put to use today, allowing you to see the difference your donation is making.
- You 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.
- Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution.
- Since the gift doesn’t count as income, it can reduce annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.
Contact your IRA administrator or financial advisor to send your gift directly to St. Louis Center, Tax ID# 38-6038121. For additional information please contact St. Louis Center’s Development Department at 734-475-8430 or firstname.lastname@example.org. You can also fill out the online form below.
What you need to know about this year’s new laws…
A new year has brought more than just resolutions. It’s brought new laws and other changes that may affect your giving decisions. And with any economic change, you may be looking at your finances and wondering how you will be impacted.
The new laws include retirement changes, known collectively as “Secure 2.0,” that may affect your saving and your giving. They may even make it easier for you to make a difference at organizations you care about.
Some important things Secure 2.0 does that involve charitable giving:
- Increase the required minimum distribution (RMD) age Secure 2.0 increases the age retirees must begin taking taxable withdrawals to 73 in 2023 and 75 by 2033, up from the previous 72. It does not, however, increase the age an IRA owner can make a qualified charitable distribution. That age remains at 70 1/2.
- How does this affect me? Simply put, the extension of the RMD age gives you more time to save. You will enjoy additional tax-free growth. It also can be significant if you do not want to begin withdrawing retirement funds during an unsettled economic climate, giving you more time for your stock portfolio to recover.
- Adjust for inflation the $100,000 annual limit on direct gifts to qualified charities from your IRA Are you 70 1/2 or older? If so, you may know about a popular gift option that allows you to make a gift directly from your IRA to a qualified charity without paying income taxes on the distribution. Historically, the amount you could give was capped at $100,000 per year. This figure will now be adjusted annually for inflation beginning in 2024.
- How does this affect me? This allows you to not only increase your giving but also ensure your giving keeps pace with inflation. And you can make an impact – and see the impact – now rather than after your lifetime.
- Allows for a distribution from your IRA to fund a life-income gift If you are 70 1/2 or older, you can make a one-time election for a qualified charitable distribution of up to $50,000 (without being taxed) from your IRA to fund a life-income gift such as a charitable gift annuity, charitable remainder unitrust or charitable remainder annuity trust.
- How does this affect me? These types of life-income gifts allow you to make a gift to a qualified charitable organization and receive lifetime payments to boost your retirement income, or provide a lifetime payment for you or your spouse.
Learn more about IRA Rollover.
If you’d like to learn more about IRA Rollover, fill out the online form below. Someone will be in touch to assist you!
Benevolent Care by the Numbers
7% of the donations received go to the care of the Center’s residents.
According to the 2022 audit, St. Louis Center administrative and overhead expenses were only 23%, in line with well-managed nonprofit best practices. You can be confident that your donation to the Center is going to good use.
$3,300,000 – The total cost of Benevolent Care that St. Louis Center must fund raise each year, ie, the amount above earned revenue such as SSI or other individual support.
$9,041 – The approximate cost of Benevolent Care to St. Louis Center each day.
St. Louis Center is a 501(c)(3) nonprofit organization, Federal Tax ID: 38-6038121
Provide the gift of
For over 60 years, St. Louis Center has remained focused on St. Louis Guanella’s vision to provide loving service to the most vulnerable people in our community, without regard to their economic status. With this as our mission, St. Louis Center always focuses first on resident care.
What is Benevolent Care?
Benevolent Care is financial support from charitable contributions necessary to cover the services that are not met by earned revenue. Given the limits of earned income, and the reality that very few families can afford the total cost of care, St. Louis Center strives to offer Benevolent Care to cover the difference.
More than half of the total costs must be fund raised to provide a level of care, which includes 24/7 supervision, protection, transportation, meal preparation, medication administration, community involvement, and assistance with other activities of daily life. The difficulties the pandemic caused over the last few years have made the need to provide Benevolent Care even more poignant.
Depending on the level of care, the cost of services to a person living at the Center may be as much as $8,000. A social security supplement (SSI/A) covers only room and board, which is about 20% of the total. Some residents do have support from their local Community Mental Health organization and a Medicaid waiver program. Many residents do not qualify for this governmental benefit, and apply instead for a small Personal Care Supplement (less than $10 per day).