You may be looking for a way to make a big difference to help further our mission. If you are 70½ or older you may also be interested in a way to lower the income and taxes from your IRA withdrawals. An IRA charitable distribution is a way you can help continue our work and benefit this year. Please call the Good Samaritan Foundation at (605) 362-3306.
We'll help answer your questions.
Benefits of an IRA charitable distribution
- Avoid taxes on transfers of up to $100,000 from your IRA to our organization
- Satisfy your required minimum distribution (RMD) for the year
- Reduce your taxable income, even if you do not itemize deductions
- Make a gift that is not subject to the 60% deduction limits on charitable gifts
- Help further the work and mission of our organization
How an IRA charitable distribution gift works
- Contact your IRA plan administrator to make a gift from your IRA to us.
- Your IRA funds will be directly transferred to our organization to help continue our important work.
- Please note that IRA charitable distribution gifts do not qualify for a charitable deduction.
- Please contact us if you wish for your gift to be used for a specific purpose.
Frequently asked questions
- What is an IRA charitable distribution?
The law uses the term “qualified charitable distribution” to describe an IRA charitable distribution. A qualified charitable distribution is money that individuals who are 70½ or older may direct from their traditional IRA to eligible charitable organizations. The provision has a cap of $100,000 for charitable distributions from individual IRAs each year. Individuals may exclude the amount distributed directly to an eligible charity from their gross income.
- What is the new expiration date of this provision?
This provision is now permanent.
- Is the Good Samaritan Society eligible to receive a qualified charitable distribution?
Yes. Contributions to public charities—including the Good Samaritan Society—are considered qualified charitable contributions.
- Does a donor also receive a charitable deduction when they make a gift from their IRA to the Good Samaritan Society under this provision?
No. Under this provision, donors benefit by not having to recognize the amount contributed directly from their IRA to a qualifying charity. However, because donors exclude this contribution from their gross income, they cannot take a charitable contribution deduction for the contribution; to do so would result in a double benefit for donors and that is explicitly prohibited.
- Is a donor limited to one IRA charitable distribution per year, or can a donor request multiple transfers?
Donors aged 70½ or older are limited to a maximum of $100,000 in any one year as an IRA charitable distribution, however there is no requirement that the entire amount be made in one transfer or that the entire amount go to a single qualified charitable organization. Donors can request multiple direct transfers from their IRA to qualified charities in a year, but only $100,000 will be excluded from income as an IRA qualified charitable distribution.
- What if donors want to contribute more than $100,000 to a qualified charity from an IRA?
The law limits the amount that donors are able to exclude from their income to $100,000. If donors wish to take funds from their IRA to contribute more than $100,000 to charity, they cannot exclude the additional amount from their gross income. Rather, they must follow the general rules pertaining to percentage limitations and itemized contribution reductions.
- How do individuals make a qualified charitable distribution?
Individuals must instruct their IRA custodian to make the contribution directly to an eligible charitable organization.
- May a charity provide any goods or services in return for the contribution?
No. If donors receive any goods or services (e.g., tickets to a fundraiser) that would have reduced their charitable deduction had they made an outright gift to the charity, the contribution of assets from an IRA will not qualify for the tax-free treatment under this provision. Gifts to the donor that are disregarded (i.e., public recognition, token gifts, and insubstantial benefits) will not disqualify the contribution from the tax-free treatment.
- How will charitable distributions impact the minimum required distributions from a taxpayer’s IRA?
Shortly after individuals reach the age of 70½, they are generally required to receive distributions from their traditional IRA. For the purposes of minimum required distributions, the IRS treats distributions from an IRA the same, whether individuals use the distribution for personal purposes or direct the distribution to a charity.
- Who should I contact for additional information?
Please contact your IRA plan administrator or click here to contact our associate director for major and planned gifts.