If you are 70-1/2 or older, you can donate up to $105,000 per tax year directly from an Individual Retirement Account (IRA). Qualified Charitable Distributions (QCDs), also known as IRA charitable rollovers or IRA gifts, are a powerful way to support our mission of advancing health equity in the Dominican Republic, allowing your dollars to go further. QCDs may be excluded from your taxable income and can count towards your required minimum distribution (RMD).
What are the IRA Charitable Rollover Rules?
Here’s how a QCD works:
- You must be 70-1/2 or older at the time of making the gift from your IRA to charity.
- You may distribute up to $105,000 in a calendar year to one or more public charities, as long as the distribution is completed by December 31 of that year.
- Your IRA administrator must make the distribution directly to the charity, or you may write a check to the charity from your IRA checkbook. Funds that are withdrawn by you and then contributed do not qualify.
Benefits of Making an IRA Gift
QCDs count toward your required minimum distribution (RMD) for the year. If you are required to take an RMD but don’t want or need the funds, QCDs are a good way to distribute the amount out of your IRA. As an added benefit, you will avoid paying income tax on your gross income up to $105,000.
Are There Any QCD Restrictions?
According to IRS regulations, QCDs cannot be made to a donor-advised fund (DAF). However, a QCD can be made to your sponsoring 501(c)(3) organization if there are programs you can fund outside of your DAF. These purposes include general support for the charity or other programs the organization may maintain outside of its role as a DAF sponsor.
For additional information on QCDs and DAFs, please contact your charitable sponsor.
How to Make an IRA Qualified Charitable Distribution
Follow these steps to make a gift from your IRA:
- Contact your IRA administrator and instruct them to transfer funds to the charity you designate.
- To help us credit your gift and properly thank you, request that your IRA administrator include your full name and mailing address on the gift. Additionally, ask your administrator to note that the transfer is an IRA Qualified Charitable Distribution. We do not encourage restricted gifts.
If you’d like to make a QCD gift, your financial institution should make the check out to “Health Horizons International” and identify you as the donor by including your name and address.
They can mail the check to:
Health Horizons International
One Regency Drive, PO Box 30
Bloomfield, CT 06002
If your financial institution cannot include your full name and address with the check, please complete the form below so that we can identify your donation when it arrives.
For any inquiries, please reach out to Ina Lee, Development Director, at ina@hhidr.org.
Note: Individual situations vary. Donors should consult their advisors.