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Make a Gift Tax-Free With an IRA

A Tax-Saving Way to Help Animal Humane Society

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With our new tool giving a Qualified Charitable Distribution (QCD) has never been easier! Visit freewill.com/QCD/AHS for a fast and easy way to fill out your IRA distribution forms.

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If you are 70½ years old or older, you can take advantage of a simple way to benefit Animal Humane Society and receive tax benefits in return. You can give any amount up to $105,000 per year from your IRA directly to a qualified charity such as ours 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 Consider This Gift?

  • 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.
  • Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution.
  • Since the gift doesn’t count as income, it can reduce your annual income level. This may help lower your Medicare premiums and decrease the amount of Social Security that is subject to tax.

Frequently Asked Questions

Q. I've already named Animal Humane Society as the beneficiary of my IRA. What are the benefits if I make a gift now instead of after my lifetime?
A. By making a gift this year of up to $105,000 from your IRA, you can see your philanthropic dollars at work. You are jump-starting the legacy you would like to leave and giving yourself the joy of watching your philanthropy take shape. Moreover, you can fulfill any outstanding pledge you may have made by transferring that amount from your IRA as long as it is $105,000 or less for the year.

Q. I'm turning age 70½ in a few months. Can I make this gift now?
A. No. You must be 70½ by the date you make the gift.

Q. I have several retirement accounts—some are pensions and some are IRAs. Does it matter which retirement account I use?
A. Yes. Direct gifts to a qualified charity can be made only from an IRA. Under certain circumstances, however, you may be able to roll assets from a pension, profit sharing, 401(k) or 403(b) plan into an IRA and then make the transfer from the IRA directly to Animal Humane Society. To determine if a rollover to an IRA is available for your plan, speak with your plan administrator.

Q. Can my gift be used as my required minimum distribution under the law?
A. Yes, absolutely. Beginning in the year you turn 73, you can use your gift to satisfy all or part of your required minimum distribution.

Q. When do I need to make my gift?
A. We must receive your gift by Dec. 31 for your donation to qualify this year. If you have check-writing features on your IRA, please be aware that your check must clear your account by Dec. 31 to count toward your required minimum distribution for the calendar year.

Q. Do I need to give my entire IRA to be eligible for the tax benefits?
A. No. You can give any amount under this provision, as long as it is $105,000 or less per year. If your IRA is valued at more than $105,000, you can transfer a portion of it to fund a charitable gift.

Q. I have two charities I want to support. Can I give $105,000 from my IRA to each?
A. No. Under the law, you can give a maximum of $105,000. For example, you can give each organization $52,500 this year or any other combination that totals $105,000 or less. Any amount of more than $105,000 in one year must be reported as taxable income.

Q. My spouse and I would like to give more than $105,000. How can we do that?
A. If you have a spouse (as defined by the IRS) who is 70½ or older and has an IRA, he or she can also give up to $105,000 from his or her IRA.

Q. Can I use the transfer to fund life-income gifts like charitable remainder trusts or charitable gift annuities?
A. Yes! If you are 70&fract12; or older, you may now make a one-time election for a qualified charitable distribution of up to $53,000 (without being taxed) from your IRA to fund a life-income gift. Some limitations apply, so contact us for more details and a personalized illustration at no obligation.

It is wise to consult with your tax professionals if you are contemplating a charitable gift.

Make a gift tax-free with an IRA

With our new tool giving a Qualified Charitable Distribution (QCD) has never been easier! Visit freewill.com/QCD/AHS for a fast and easy way to fill out your IRA distribution forms.

Not Sure How to Begin Planning? Download our FREE Personal Estate Planning Kit

Next Steps

  1. Contact Alison Schneider at 763-432-4809 or aschneider@animalhumanesociety.org for additional information on making a gift from your IRA.
  2. Seek the advice of your financial or legal advisor.
  3. Ask your IRA administrator about making a direct transfer to Animal Humane Society 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 Animal Humane Society without passing through your hands.)

Legal name: Animal Humane Society
Address: 845 Meadow Lane North, Golden Valley, MN 55422
Federal tax ID number: 41-0693842

Learn How to Fund It

A charitable bequest is one or two sentences in your will or living trust that leave to Animal Humane Society a specific item, an amount of money, a gift contingent upon certain events or a percentage of your estate.

an individual or organization designated to receive benefits or funds under a will or other contract, such as an insurance policy, trust or retirement plan

"I, [name], of [city, state, ZIP], give, devise and bequeath to Animal Humane Society [written amount or percentage of the estate or description of property] for its unrestricted use and purpose."
Federal Tax ID: 41-0693842

able to be changed or cancelled

A revocable living trust is set up during your lifetime and can be revoked at any time before death. They allow assets held in the trust to pass directly to beneficiaries without probate court proceedings and can also reduce federal estate taxes.

cannot be changed or cancelled

tax on gifts generally paid by the person making the gift rather than the recipient

the original value of an asset, such as stock, before its appreciation or depreciation

the growth in value of an asset like stock or real estate since the original purchase

the price a willing buyer and willing seller can agree on

The person receiving the gift annuity payments.

the part of an estate left after debts, taxes and specific bequests have been paid

a written and properly witnessed legal change to a will

the person named in a will to manage the estate, collect the property, pay any debt, and distribute property according to the will

A donor advised fund is an account that you set up but which is managed by a nonprofit organization. You contribute to the account, which grows tax-free. You can recommend how much (and how often) you want to distribute money from that fund to Animal Humane Society or other charities. You cannot direct the gifts.

An endowed gift can create a new endowment or add to an existing endowment. The principal of the endowment is invested and a portion of the principal’s earnings are used each year to support our mission.

Tax on the growth in value of an asset—such as real estate or stock—since its original purchase.

Securities, real estate or any other property having a fair market value greater than its original purchase price.

Real estate can be a personal residence, vacation home, timeshare property, farm, commercial property or undeveloped land.

A charitable remainder trust provides you or other named individuals income each year for life or a period not exceeding 20 years from assets you give to the trust you create.

You give assets to a trust that pays our organization set payments for a number of years, which you choose. The longer the length of time, the better the potential tax savings to you. When the term is up, the remaining trust assets go to you, your family or other beneficiaries you select. This is an excellent way to transfer property to family members at a minimal cost.

You fund this type of trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. You can also make additional gifts; each one also qualifies for a tax deduction. The trust pays you, each year, a variable amount based on a fixed percentage of the fair market value of the trust assets. When the trust terminates, the remaining principal goes to Animal Humane Society as a lump sum.

You fund this trust with cash or appreciated assets—and may qualify for a federal income tax charitable deduction when you itemize. Each year the trust pays you or another named individual the same dollar amount you choose at the start. When the trust terminates, the remaining principal goes to Animal Humane Society as a lump sum.

A beneficiary designation clearly identifies how specific assets will be distributed after your death.

A charitable gift annuity involves a simple contract between you and Animal Humane Society where you agree to make a gift to Animal Humane Society and we, in return, agree to pay you (and someone else, if you choose) a fixed amount each year for the rest of your life.
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