If you are 70 ½ or older, you can make a tax-favored gift to the Liberty Theatre (aka Liberty Restoration Inc.) by making a direct transfer from your IRA of up to $100,000 payable directly to a qualified charity, like the Liberty Theatre Astoria. This is known as a Qualified Charitable Distribution (QCD) or an IRA charitable roller. If you are 72 and older, this charitable transfer can also satisfy your Required Minimum Distribution (RMD) that the IRS requires you to take each year from your tax-deferred retirement accounts.
This type of gift can create a tax benefit for you as it neither generates taxable income nor is a tax deduction. One of the best aspects of making a gift using your IRA is that you can immediately see your impact. Your gift to the Liberty Theatre (aka Liberty Restoration Inc.) ensures the ongoing stability of our work so we can continue building strong communities through the arts.
IRA Gift Rules
- If you take your RMD as income, instead of as a QCD, your RMD will count as taxable income. To lessen or eliminate the impact of taking your RMD as taxable income, you may consider making a QCD.
- You must be at least 70 ½ years old at the time you request a QCD. If you process a distribution prior to reaching 70 ½, the distribution will be treated as taxable income.
- For a QCD to count toward your current year’s RMD, the funds must come out of your IRA by your RMD deadline, which is generally December 31 each year.
- The maximum annual distribution amount that can qualify for a QCD is $100,000, but if you are a joint tax filer both you and your spouse can make a $100,000 QCD from your own IRAs.
- Funds must be transferred directly from your IRA custodian to the Liberty Theatre (aka Liberty Restoration Inc.).
- This is accomplished by requesting your IRA custodian to issue a check from your IRA payable to the Liberty Theatre Astoria (aka Liberty Restoration Inc.).
- Per the Legacy Act, since January 2023 donors aged 70 ½ or older can make a one-time $50,000 IRA rollover gift to a charity to fund a life income plan: a charitable gift annuity, charitable remainder annuity trust, or charitable remainder unitrust. The $50,000 cap can only be used in one calendar year, but within this one-year period seniors can make gifts to multiple charities.
- Donors are limited to a maximum of $50,000 in one calendar year in their lifetime as qualified distribution. However, within that one year, there is no requirement that the entire amount be made in one transfer.
- Per the Legacy Act, in 2024 the IRA Charitable Rollover cap of $100,000 and the onetime life-income plan rollover cap of $50,000 will be permanently indexed for inflation.
- Making a QCD limits the donor benefits you may receive because a full tax deduction is received at the time of establishment. Donors may only receive “incidental” benefits, or benefits which do not carry a fair market value.
- If you notify us in writing that your IRA gift is an RMD (not a QCD) then you may receive full benefits and a fair market value can be deducted from your gift.
- If you currently enjoy donor benefits, please contact us to learn about which donor benefits you are eligible to receive when you give through your IRA.
For more information on Charitable Qualifying Distributions from your IRA, contact the Development Director at the Liberty Theatre Astoria: Rachel Schack-Holland, development@libertyastoria.org, (458) 278-9866.
You should always consult with your IRA administrator or your tax advisor to discuss your plans and ensure that making a QCD from your IRA is right for you.
Liberty Restoration Inc. is a registered 501(c)(3) nonprofit organization. EIN# 87-0452722
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