A lasting legacy

A lasting legacy CONSIDER USING RETIREMENT SAVINGS FOR A CHARITABLE CAUSE BY TRACY POPE

s donors approach their 70s, many ask themselves about the legacy they are leaving behind. Decisions about how much and to whom we give at the end of our life can be daunting. If you are pondering these types of decisions, you might be interested to learn more about the benefits of making a qualified charitable distribution (QCD) from your individual retirement account (IRA).

In the last few years there has been an explosion of interest in QCDs, mostly from people who have excess retirement savings and are looking for a way to leave a lasting impact on the community they love. Combine that philanthropic instinct with the less-than-ideal tax implications of taking required minimum distributions (RMDs) from a traditional IRA, or leaving the IRA to children upon death, and QCDs quickly become a more attractive option to consider.

Here is how QCDs work: if you are 70 ½ or older, you may transfer a gift from an IRA directly to a charity, potentially fulfilling your RMD and experiencing both tax benefits and satisfaction with knowing that you are making a difference in your community. Consult your tax advisor for a full understanding of the restrictions and benefits

Aof QCDs, especially since the recent CARES and SECURE acts have introduced additional variables. Sometimes finding a charity or charities best aligned with your community goals can be intimidating. Designated funds can simplify that process. With a designated fund to house your QCDs, you can rely on experts to advise and assist in making sure your legacy is fulfilled as you wish, even after you have passed. Designated funds are a powerful tool for ensuring that the nonprofits you care about will be supported well into the future. Designated funds also generally accept other types of donations and gifts, including appreciated securities, which can provide additional tax benefits. There is an array of strategies to provide a lasting investment in the community that you have enjoyed living in and working in all these years. If charitable giving is an important part of your retirement plans, consider whether QCDs or a designated fund might be an impactful option for you, helping you to give back. Tracy Pope is the Marketing and Grants Director of the Community Foundation serving Southwest Colorado. She can be reached at tracy@ swcommunityfoundation.org.

Benefiting the human condition in Southwest Colorado for 64 years

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Nonprofits serving our five-county region are eligible to apply once per calendar year for grants up to $5,000. Online applications are accepted and reviewed quarterly at www.ballantinefamilyfund.com.

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