Donate from IRA or Other Investments
To donate from an IRA, you will authorize the custodian of the account to make payments from your account, on your behalf. To get a check sent to the American Retiree Education Foundation (AREF) from an IRA, the custodian must confirm that the IRS has AREF’s certifications on file. The process protects you and investment firms. You can follow the same steps and withdraw funds from other investment accounts and write a personal check.
After you provide your personal authorization to an IRA custodian you should instruct them to go to www.arefseniors.org, click “Donate” on the red task bar, then select “Donate to the AREF” and then “Donate from an IRA or other investment accounts Here.” You and custodians can read and copy AREF’s IRS certifications by clicking the blue links on page 2.
Information about Qualified Charitable Distributions (QCDs):
For retirees who hold assets in an Individual Retirement Account (IRA), utilizing Qualified Charitable Distributions (QCDs) is a beneficial strategy for making charitable contributions to AREF while simultaneously reducing federal income taxes. A QCD allows individuals aged 70½ or older to direct up to $100,000 per year from their IRAs directly to qualified charities without having to recognize the distribution as taxable income.
Here is how it works:
- Tax Benefits: When retirees make a QCD to AREF, the amount distributed is excluded from their taxable income. This is particularly advantageous for those who do not itemize deductions on their tax returns, as it effectively reduces their adjusted gross income (AGI), potentially lowering their overall tax liability.
- Satisfying Required Minimum Distributions (RMDs): If retirees are required to take minimum distributions from their IRAs, a QCD can satisfy all or part of that requirement. By making a QCD to AREF, they can meet their RMD obligation while simultaneously supporting a cause they care about.
- Direct Contributions: To utilize a QCD, retirees must ensure that the funds are transferred directly from their IRA to AREF. It is important to inform the IRA custodian of the intent to make a QCD and ensure that the charity is eligible under IRS guidelines.
It is advisable to consult with a tax professional to ensure compliance with all IRS regulations and to maximize the potential benefits of this giving strategy.
Charitable Distributions to the American Retirees Education Foundation) are donations that can be tax-advantageous, especially when structured as Qualified Charitable Distributions (QCDs) or other planned giving strategies. AREF is a 501(c)(3) organization, meaning that donations are tax-deductible.
For donors aged 70½ and older, a QCD allows them to transfer up to $100,000 annually from their IRA directly to AREF without it being considered taxable income. This can satisfy all or part of their required minimum distribution (RMD) for the year, which may reduce overall tax liability. Charitable distributions, whether outright gifts, QCDs, or part of a donor’s estate planning, are an impactful way to support AREF’s mission and provide potential tax benefits.
Donors who give to the AREF can request a receipt for their contributions to support their deduction claim when filing their taxes.
You and your IRA custodian can read and copy AREF’s official IRS certifications by clicking on the black links below:
IRS Exempt Organization Select Check
IRS Exempt Organization Check is a tool used to verify whether a specific organization, like the American Retirees Education Foundation (AREF), qualifies as a tax-exempt entity under the Internal Revenue Code. This is important for retirees considering making contributions, as donations to exempt organizations are generally tax-deductible.
IRS Letter of Determination for AREF
An IRS Letter of Determination is an official document issued by the Internal Revenue Service (IRS) that certifies an organization’s tax-exempt status. For anyone looking to make a charitable donation to the American Retirement Education Foundation (AREF), this letter is essential. It confirms that AREF qualifies as a 501(c)(3) nonprofit organization, meaning donations made to the foundation are generally tax-deductible for donors, subject to IRS rules and individual circumstances.
The IRS has issued a Letter of Determination to the AREF that says …”we determined you are exempt from federal income tax under Internal Revenue Code (IRC) Section 501 (c) (3). Donors can deduct contributions they make to you under IRC Section 170. You are also qualified to receive tax deductible bequests, devises, transfers, or gifts under Section 2055, 2106, or 2522. Also, that “We determined you are a public charity under the IRC Section listed at the top of this letter.”
The IRS Deductibility Status for the AREF (American Retirees Education Foundation) determines whether donations made to it are tax-deductible. AREF holds 501(c)(3) status, meaning it qualifies as a charitable organization under IRS guidelines, allowing contributions made by donors to be tax-deductible on their federal income taxes.
This document advises you that an individual who itemizes deductions may deduct
contributions to most charitable organizations up to 50% of his or her adjusted gross income computed without regard to net operating loss carrybacks. Individuals generally may deduct charitable contributions to other organizations up to 30% of adjusted gross income.
This status is beneficial for donors because it can reduce their taxable income, offering a financial incentive for supporting AREF’s work. As a 501(c)(3), AREF is dedicated to educational initiatives and must meet strict IRS regulations that govern charitable activities and restrict lobbying efforts.
Your donation will assist us in pursuing legislation in Congress. The AREF is a nonprofit, tax-exempt organization. Donations ARE tax deductible.
