Those 72 or older who are required to take a minimum distribution (RMD) from an Individual Retirement Account (IRA) can donate up to $100,000 to charitable organizations directly, without treating the distribution as taxable income. Below is an example of how a donor used his IRA gift to LCF as a way to increase his impact on the community.
The NORMUS Fund – RMD from an IRA helping our community
We recently had the pleasure of working with a donor that wished to make an impact with his IRA distribution. After learning that he wanted to help the community but didn’t want a lot of paperwork, involvement, or attention, we recommended creating a designated fund. The donor created The NORMUS Fund to benefit four charities each year. Each time his RMD comes to the NORMUS Fund at the Longmont Community Foundation, we will send gifts to the four charities he selected as designees.
The best part is that not only does the donor provide support to the organizations that he cares about, but we make it easy by distributing the gifts from his designated fund and passing along thank you notes from the nonprofits for his gifts.
As an added gesture of his generosity, any remainder left in the fund will be distributed to the Live & Give Longmont Fund, where our volunteer committee will distribute this amount as part of our annual grant making to Longmont nonprofits.
You may make your IRA Charitable distributions any time. Contact us so we can show some options on how you can impact the community with your IRA RMD.