My friend Brent Schondelmeyer has a habit of introducing me to good ideas. He’s thoughtful, practical and always looking for ways to make a difference.
One of those ideas is something called a qualified charitable distribution, or QCD. Until Brent mentioned it, I’d never heard of one. The more I learned, the more I thought, “Why don’t more people know about this?”
“This was an opportunity to do more and give more to The Beacon, which I have supported for years,” said Schondelmeyer, who is a former journalist and a member of the initial community advisory board. “This is a new thoughtful way of supporting the things I care about. The Beacon is on that list.”
If you’re over 70½ years old, a QCD can be a tax-smart way to support organizations you care about, including The Beacon. So I thought it was worth sharing with all of you.
Here’s the simple version.
If you have a traditional IRA and you’re 70½ or older, you may be able to make a charitable gift directly from your IRA to The Beacon. This is called a Qualified Charitable Distribution, or QCD. Instead of withdrawing the money yourself and then writing a check, your IRA custodian sends the gift directly to The Beacon.
Why would someone do that?
Many retirement accounts were funded with pre-tax dollars. That means you didn’t pay taxes on the money when you contributed it. Instead, you generally pay taxes when you withdraw it in retirement.
Beginning at age 73, most people are required to take a minimum withdrawal from their IRA each year. That’s called a required minimum distribution, or RMD.
A QCD gives you another option.
Rather than taking your entire RMD as taxable income, you can direct some or all of it to a qualified nonprofit like The Beacon. For many people, that means supporting a cause they care about while potentially reducing their taxable income.
Here’s an example. If your required minimum distribution this year is $30,000 and you choose to make a $5,000 qualified charitable distribution to The Beacon, you would generally pay taxes on the remaining $25,000 instead of the full $30,000.
How do I make a qualified charitable distribution to The Beacon?
The process is usually straightforward.
Simply contact the financial institution that manages your IRA and let them know you’d like to make a qualified charitable distribution to The Beacon. They’ll take care of the paperwork and send the gift directly to us.
They’ll likely need the following information:
The Beacon Media, Inc.
EIN: 83-4587205
Mailing Address:
300 E. 39th St.
Kansas City, MO 64111
If your IRA custodian needs any additional information, or if you have questions about making a gift, we’d be happy to help. Just reach out to us at info@thebeaconnews.org or contact me directly.
One of the things I love most about leading The Beacon is that our supporters don’t just invest in our journalism. They invest in making our organization stronger. Sometimes that’s through financial support. Sometimes it’s through a thoughtful introduction or a great idea.
This month, that great idea came from Brent.
If sharing it helps even one person discover a new way to support independent local journalism, I’m glad he did.
This article is intended for educational purposes only and should not be considered financial or tax advice. Please consult your financial or tax advisor to determine whether a qualified charitable distribution is appropriate for your individual circumstances.
