If you are 72 or older, you now have reached the milestone where you have to begin taking your annual required minimum distribution, or RMD, from your retirement account. Along with that distribution comes tax on your previously untaxed assets.
But there is a way to satisfy your RMD requirements while avoiding tax and supporting the causes that matter most to you. It is called an IRA charitable rollover gift, and it is easy to make!
Simply tell your IRA account custodian that you want to make a "qualified charitable distribution" to Idaho Youth Ranch. You can give up to $100,000 per year. With the IRA rollover gift, you may satisfy all or part of your RMD without paying tax on the distribution to charity. A portion or all of your required minimum distribution is met, and the money goes to work providing life-changing programs to vulnerable kids and families.
Don't forget matching gift opportunities! Be sure to take advantage of any employer-matching gift opportunities you have available to you. Your gift can grow and make that much more of a difference.
Benefits of donating retirement assets to nonprofits:
- Avoid potential estate tax on retirement assets.Your heirs would avoid income tax on any retirement assets funded on a pre-tax basis.
- Receive potential estate tax savings from an estate tax donation.
How to donate retirement assets to Idaho Youth Ranch
To leave your retirement assets to Idaho Youth Ranch, you will need to complete a beneficiary designation form provided by your retirement plan custodian. If you designate Idaho Youth Ranch as the beneficiary, we will benefit from the full value of your gift because your IRA assets will not be taxed at your death. Your estate will benefit from an estate tax charitable deduction for the gift.
Did you know that 60%-70% of your retirement assets may be taxed if you leave them to your heirs at your death? Another option is to leave your heirs assets that receive a step up in basis, such as real estate and stock, and give the retirement assets to Idaho Youth Ranch. As a charity, we are not taxed upon receiving an IRA or other retirement plan assets.
Stocks & Bonds
Donating appreciated securities, including stocks or bonds, is an easy and tax-effective way for you to make a gift to Idaho Youth Ranch.
Benefits of gifts of stocks and bonds
- Avoid paying capital gains tax on the sale of appreciated stock
- Receive a charitable income tax deduction
- Further our mission today
How to make a gift of stocks and bonds
By electronic transfer - Please contact us for instructions on how you can transfer stock or bonds from your brokerage or investment account to Idaho Youth Ranch.
By certified mail - If you hold securities in certificate form, you will need to mail two envelopes separately to complete your gift. In the first envelope, place the unsigned stock certificate(s). In the other envelope, include a signed stock power for each certificate. You may obtain this power from your broker or bank. Please remember to use certified mail.
More on gifts of stocks and bonds
There are special rules for valuing a gift of stock. The value of a charitable gift of stock is determined by taking the mean between the high and low stock price on the date of the gift. Mutual fund shares are valued using the closing price for the fund on the date of the gift.