Qualified Charitable Distributions  

Besides membership dues (see the link "JOIN - RENEW _DONATE" in the blue box at left) and (if your employer offers them) matching donations, you can contribute directly from your traditional IRA so long as you are at least age 70½ years.  You can give any amount (up to a maximum of $100,000) per year from your IRA directly to a qualified charity such as CWAG.

If you need to take Required Minimum Distributions from a traditional IRA, Qualified Charitable Distributions (QCD's) are a very easy and tax-efficient way to donate to CWAG.  These donations come "off the top" of your taxable income.  No need to bother with deductions.

Here's how I do this with Vanguard. (Other IRA custodians should be similar).  In my Vanguard IRA account, I select "Transfer Money" and "Withdraw from IRA" then select my (Money Market) Settlement Fund and enter the amount (for example $1000) and hit "Continue". In the next screen, I select "Send me a check payable to a charity" and enter the charity name (Citizens Water Advocacy Group). In the next screen, I select "Do not withhold" taxes, since this money will not be taxable and submit the transaction. Vanguard will then send me a check, which I forward to the CWAG treasurer: CWAG • P.O. Box 13145 • Prescott, AZ 86304. 

At tax time, Vanguard will show the total IRA distribution as taxable but with the "taxable amount not determined" box checked. I tell my tax software that part of my distribution (for example $1000) is a QCD. The tax software will subtract this amount from my taxable income.

Vanguard suggests keeping a copy of the check (I make a digital pdf copy or take a smartphone photo) to prove the distribution was a donation.  Vanguard has a $5000 limit for a QCD done this simple way (no signature guarantee req'd). There is no minimum.  

Direct any questions to This email address is being protected from spambots. You need JavaScript enabled to view it..

--- Fred Oswald.