Planning - for new and seasoned philanthropists

Brian Treece photo
Brian Treece - President & CEO of The Community Foundation

A new year, a fresh start, and a new tax year. At the Foundation this time of year is a bit of a catchup period after the busyness of fourth quarter giving season. This is also the time of year we suggest current and future donors talk with their team of advisors about their IRA to avoid the strain during the November and December busy season.

IRAs can be complicated but if you have an IRA and are 70 ½ or older then you can make Qualified Charitable Distributions (QCD) up to $100,000 per year. If you’re over 72, you have a Required Minimum Distribution (RMD) to use or donate each year. Your QCD can help you meet your RMD requirements and lower your taxable income for the year. The Community Foundation can help you determine how to create a lasting impact with your gift.

If you’re lost in the alphabet scramble, you’re not alone. We regularly meet with donors and their CPAs, financial planners and other advisors to talk through all the options and help you select the plan that is right for you and your philanthropic goals. Your QCD could be the start of establishing your legacy in the community through the Foundation. You’ve heard me say many times that we’re at our best when we work together, and that’s true in philanthropy as well.

If you’re not at the point in your life where QCDs and RMDs are relevant to your finances, now is the time to consider the causes and organizations you’re currently donating to or hope to donate to in the future. Talk with a tax professional to make sure that the IRA contributions you make today will support your giving well into the future. If not your IRA, what other options do you have?

The Community Foundation is here to help you meet the IRS requirements and continue to support your philanthropic passions. Our staff can help create a plan to distribute funds, as well as work with your team of advisors to determine the best way to make a gift and minimize tax implications.

I encourage you to speak to your team of advisors to start planning or make updates as we head into a new year. For advisors, we’re happy to introduce our team and process to offer our services to your future clients. The Community Foundation staff is happy to be part of your team to layout all your options to meet your philanthropic goals. Our team is ready when you are!

This editorial was originally printed in The Courier Wednesday, January 12, 2021.