[vc_row][vc_column][vc_single_image image=”8079″ img_size=”75″ alignment=”center” css=”.vc_custom_1552340846804{padding-top: 25px !important;}”][vc_column_text]
Charitable Gifting
There are generally two ways to maximize charitable gifting:
- Make a Qualified Charitable Distribution from your tax deferred IRAs in lieu of your RMD. By utilizing a QCD, neither you nor your charity will pay any taxes.
- Designate AKF or your charity of choice as an intended beneficiary of the account. Funds will only be given to the charity upon death of the owner of the account. Requirements for IRA Charitable Rollover
1. Qualified Charitable Distribution (QCD)
Starting at age 73 the IRS mandates IRA owners to take annual withdrawals, known as Required Minimum Distributions (RMDs). Retirement-age individuals may be hesitant to take an RMD if they have other sufficient sources of income. However, they have no choice, at age 73, RMDs must be taken and taxes must be paid. Also, the withdrawal is subject to ordinary income tax, which may push the owner of an IRA into a higher tax bracket.
Thankfully, charitably minded individuals & couples age 73 and older have a tax-smart strategy called a qualified charitable distribution (QCD), also known as a charitable IRA rollover. The QCD allows a donor to send up to $100,000 per year—all or part of the annual RMD—to AKF USA or another charity of their choice.
Couples who submit tax returns with married filing jointly status each qualify for annual QCDs of up to $100,000, for a potential total of $200,000. Starting in 2023, donors can also direct a one-time, $50,000 QCD to a charitable remainder trust or charitable gift annuity as part of recently passed SECURE Act 2.0 legislation. And starting in 2024, QCDs will be indexed for inflation. So, with QCDs, more of your assets can be used to support your favorite charities that are making a difference.
Donors do not report QCDs as taxable income and don’t owe any taxes on the QCD, even if they do not itemize deductions. Some donors may also find that QCDs provide greater tax savings than cash donations for which charitable tax deductions are claimed. This is because the QCD reduces a donor’s adjusted gross income (AGI). AGI is used in several key calculations, such as determining the taxable portion of Social Security benefits or what deductions and credits donors qualify for receiving.
2. Beneficiary Designation
Alternatively, a donor might choose to name AKF USA as the beneficiary of an IRA or another retirement asset, such as 401(k), 403(b), or other employee-sponsored plan. A beneficiary designation ensures that any residual amounts would be distributed directly to AKF USA (and/or any other beneficiary) when the donor passes away.
A Donor may choose to leave % of their IRAs to their family members and leave % to AKF /Charity.
In designating AKF USA as a beneficiary of your retirement account, please send AKF USA a copy of your instructions to the financial institution, to ensure that AKF USA can follow up, at the appropriate time, and ensure that your estate receives the tax receipt for filing the terminal tax returns.
Tax situations vary. Hence, please consult your financial planner & your CPA accountant to ensure that your chosen strategy to support AKF USA through the Planned and Legacy Giving Program maximizes your family’s Estate Planning strategies & tax savings.
Finally, should you intend to include AKF USA in your plans in your disposition of retirement assets, please complete the AKF USA Letter of Intent (LOI) and check the appropriate box(es) on page 4.[/vc_column_text][vc_column_text]
Inform AKF USA
For more information on making a bequest or informing AKF USA of your intention, please contact your local AKF USA volunteer or call 202.293.2537, email [email protected], or mail to:
Planned and Legacy Giving
Aga Khan Foundation USA
1825 K Street, NW Suite 901
Washington, DC 20006[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_empty_space height=”30px”][/vc_column][/vc_row][vc_row full_width=”stretch_row” css=”.vc_custom_1551988764679{background-color: #58585b !important;}”][vc_column][vc_custom_heading text=”More Ways to Leave a Planned Gift” font_container=”tag:h2|text_align:center|color:%23ffffff” use_theme_fonts=”yes” el_class=”intro”][vc_row_inner el_class=”padding”][vc_column_inner width=”1/4″ el_id=”willcol”][vc_single_image image=”7971″ img_size=”75″ alignment=”center” onclick=”custom_link” link=”https://stagingakfusa.wpengine.com/planned-and-legacy-giving-wills/”][vc_custom_heading text=”Bequests in Will” font_container=”tag:h3|text_align:center|color:%23ffffff” use_theme_fonts=”yes” link=”url:https%3A%2F%2Fstagingakfusa.wpengine.com%2Fplanned-and-legacy-giving-wills%2F|title:Bequests%20in%20Will||”][/vc_column_inner][vc_column_inner width=”1/4″][vc_single_image image=”7968″ img_size=”75″ alignment=”center” onclick=”custom_link” link=”https://stagingakfusa.wpengine.com/planned-and-legacy-giving-life-insurance/”][vc_custom_heading text=”Gifts of Life Insurance” font_container=”tag:h3|text_align:center|color:%23ffffff” use_theme_fonts=”yes” link=”url:https%3A%2F%2Fstagingakfusa.wpengine.com%2Fplanned-and-legacy-giving-life-insurance%2F|title:Deferred%20Gifts%20of%20Life%20Insurance||”][/vc_column_inner][vc_column_inner width=”1/4″][vc_single_image image=”7969″ img_size=”75″ alignment=”center” onclick=”custom_link” link=”https://akfusa.org/planned-and-legacy-giving-retirement/”][vc_custom_heading text=”Beneficiary Designations” font_container=”tag:h3|text_align:center|color:%23ffffff” use_theme_fonts=”yes” link=”url:https%3A%2F%2Fakfusa.org%2Fplanned-and-legacy-giving-retirement%2F|title:Beneficiary%20Designations||”][/vc_column_inner][vc_column_inner width=”1/4″][vc_single_image image=”7970″ img_size=”75″ alignment=”center” onclick=”custom_link” link=”https://akfusa.org/planned-and-legacy-giving-securities”][vc_custom_heading text=”Gifts of Securities” font_container=”tag:h3|text_align:center|color:%23ffffff” use_theme_fonts=”yes” link=”url:https%3A%2F%2Fakfusa.org%2Fplanned-and-legacy-giving-securities%2F|title:Gifts%20of%20Securities||”][/vc_column_inner][/vc_row_inner][/vc_column][/vc_row][vc_row][vc_column][vc_btn title=”Return to Planned and Legacy Giving” align=”center” link=”url:https%3A%2F%2Fstagingakfusa.wpengine.com%2Fplanned-and-legacy-giving|title:Planned%20and%20Legacy%20Giving%20Main||” css=”.vc_custom_1552341054942{padding-top: 30px !important;padding-bottom: 30px !important;}”][vc_column_text]The content on our Planned and Legacy Giving pages is for informational purposes only. We recommend that you consult with your financial and legal advisors for additional information and guidance.[/vc_column_text][/vc_column][/vc_row]