People give to charities for a variety of reasons—some completely from the heart, some to gain tax advantage, and some for both. Whatever your motivation is, here are a few strategies available to lower your tax bill.
Qualified Charitable Distributions (“QCD”): For the cool kids in the over-70 ½ years old club, you may directly transfer funds from your IRA to a qualified charity. For those 73 years and older, this amount will be excluded from your taxable income and can be counted towards satisfying your Required Minimum Distribution (“RMD”). QCDs are limited to the amount that would otherwise be taxed as ordinary income. Your IRA custodian or financial advisor has all the information you need to find out if this opportunity is best for you.
The Community Foundation of Middle Tennessee (CFMT) is a great partner of the IBMA Foundation. Our endowed funds are held and managed by this foundation. The development department of the CFMT would be happy to provide you with more information about tax-wise planned gifts. They are very helpful and knowledgeable.
If you want to set up an endowment to benefit the future of bluegrass, please feel free to contact Nancy Cardwell at the IBMA Foundation. The Foundation collaborates with CFMT to ensure your money is protected while being administered by the Foundation’s experts who know bluegrass and what the bluegrass community needs.
Name the IBMA Foundation in your will: Charitable donations for estate tax purposes can be utilized to reduce or negate estate tax at death. Any money you give to a qualified 501(c)(3) organization is not included in your taxable estate. The IBMA Foundation has been honored to receive several bequests.
Please know that we appreciate all the donations we receive, big and small. More than 80% of our operating income comes from donations from individuals, foundations, corporations, and fundraisers, with the remainder generated by investments. Our supporters truly make the IBMA Foundation’s work possible. Thanks for working with us to make the future of bluegrass music bright!
RETURN to the July 2024 issue of The Cornerstone.
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