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Give From Your IRA: A Tax-Saving Way to Help the Bay Area Community Foundation

If you are 70 1/2 years old or older, you can take advantage of a simple way to benefit your community through the Bay Area Community Foundation and receive tax benefits in return. You can give up to $100,000 from your IRA directly to a qualified charitable institution without having to pay income taxes on the money. This popular gift option is commonly called the IRA Charitable Rollover, but you may also see it referred to as a qualified charitable distribution, or QCD, for short.

Why Give from My IRA?

  • Your gift will be put to use today, allowing you to see the difference your donation is making.
  • You pay no income taxes on the gift. The transfer generates neither taxable income nor a tax deduction, so you benefit even if you do not itemize your deductions.
  • If you have not yet taken your required minimum distribution for the year, a qualified charitable distribution (QCD) can satisfy all or part of that requirement.

How it Works

  • You make a gift of up to $100,000 by transferring IRA assets to your community foundation. You must be 70 1/2 years old. If married, each spouse can transfer up to $100,000 from his or her IRA.
  • Your gift can be placed into a charitable fund in your name, the name of your family, or in honor of any person or organization you choose. We handle all administrative details.
  • Your gift can be placed into an endowment that is invested and will grow over time. Grants addressing community needs will be made forever.

Choose a Fund

Although Donor Advised Funds are not eligible to receive QCDs per IRS regulations, the Community Foundation has several alternatives for donors to consider:

  • Unrestricted Fund — Address a broad range of current and future needs. The community foundation awards strategic grants to select projects and programs.
  • Field of Interest Fund — Target your gifts to causes important to you. The community foundation awards grants to programs addressing your specific interest area.
  • Designated Fund — Support the good work of a specific nonprofit organization with a source of income, plus planned giving and investment management services.

Frequently Asked Questions

  • I've already named Bay Area Community Foundation as the beneficiary of my IRA. What are the benefits of making a gift now? — By making a gift this year of up to $100,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you've planned to leave and giving yourself the joy of seeing your wishes come true.
  • I'm turning 70 1/2 in a few months. Can I make this gift now? — No. The legislation requires you to reach age 70 1/2 by the date you make the gift.
  • When do I need to make my gift? — We must receive your gift by Dec. 31 for your donation to qualify for this year. If you have check-writing privileges on your IRA account, please mail your check by Dec. 15 to ensure time for delivery.

Next Steps

  1. Contact the Bay Area Community Foundation at 989.893.4438 for additional information on giving an IRA gift.
  2. Seek the advice of your financial or legal advisor.
  3. Request that your IRA administrator make a direct transfer to the Bay Area Community Foundation or have the administrator send a check from your account to us. (To be tax free, the donation must go directly from your account to BACF without passing through your hands.) We have included a sample letter (editable Word document) below for your use if you prefer to send a letter to your administrator.

    Click to download a sample letter to your IRA plan administrator.

Legal Name: Bay Area Community Foundation

Address: 1000 Adams Street, Suite 200, Bay City, MI 48708

Federal Tax ID Number: 38-2418086

This information is not a substitute for expert legal, tax, or other professional advice, and we strongly encourage donors to work with your professional advisors to determine the impact of making a QCD on your particular situations.

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Pere Marquette Depot in Downtown Bay City

1000 Adams St., Suite 200
Bay City, MI 48708
Phone: 989.893.4438
Email: bacfnd@bayfoundation.org
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