Qualified Charitable Distributions – IRA/401K & DAF
Thank you for considering a gift from your Retirement Account or Donor Advised Fund to the Conventual Franciscan Friars of the Province of Our Lady of Consolation.
A gift from your IRA can help the friars and lower your tax bill
- Give from your required distribution directly to the friars and effectively lower your adjusted gross income
- Designate all or a portion of your required distribution to the Friars.
- You do not pay income taxes for the amount of your distributed donation
- If you are at least 72 the amount gifted is tax free and counts towards the minimum distribution requirement (up $100,000 per year)
An IRA Rollover, also called a Qualified Charitable Distribution, is easy to complete. You direct your IRA custodian to issue a gift to the friars directly from your Retirement Account. If you take your distribution from a traditional IRA and put it into your checking account, the distribution incurs taxes since you didn’t pay taxes on the money when you put it into the IRA. But a gift from your IRA to the friars is not income to you.
Name the Friars as a Beneficiary of Your Retirement Account
You can name the friars a beneficiary of your retirement account. If you have an IRA, 401(k), 403(b), or other defined-contribution plan, you can name the friars as a beneficiary of all or a portion of funds remaining upon your death. The amount given to the friars will be subject neither to income nor estate tax. The legal name of the friars is, The Province of Our Lady of Consolation, Inc.
The Friars are qualified to receive a gift from your Donor Advised Fund (DAF)
A donor-advised fund (DAF) is a private fund administered by a third party and created by you for the purpose of making multiple charitable donations. You request a distribution through your DAF account to the friars.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice.
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We make it easy for us to guide you through this process. You can call us M-F 9-4 EST at 812-923-5250 or message us anytime via the form below and we will be happy to get back to you in a timely manner.
A Real World Example…
Janet Able has always enjoyed giving to the friars because of her dedication to St. Anthony and her appreciation of the friars who helped her teach her children at Bellarmine University. She also likes the ease of being able to email her retirement account manager to send her gift of any amount to the friars. Janet is legally required to take out more from her retirement account than she needs every year. By rolling over funds directly from her retirement account she doesn’t bear any of the income, thus she doesn’t have to pay any income taxes on her distribution directly to the friars.
In order to promptly and accurately credit a gift from an IRA or DAF, it is essential that the check include the donor’s name and address. Without this information, we are occasionally unable to send you the correct charitable gift receipt.
As soon as a gift is received and matched to a donor, the Mission Advancement Office sends an acknowledgment letter stating the nature of the gift, the gift valuation date, and the gift valuation amount and a clarification statement indicating no goods or services were exchanged for the gift.
The Province of Our Lady of Consolation is a tax-exempt 501(c)(3) organization (EIN # 35-6019627) and does not provide tax, legal, or financial advice. Any document or information shared by our staff is intended to be educational. We strongly encourage donors to seek counsel from their own legal and financial advisors.