The Gift of a Lifetime: Turning Retirement Accounts into Charitable Good

November 6, 2023

Do you or your clients have retirement accounts and charitable intent? If they are 70 ½ or older, they can easily make a qualified charitable distribution and get a tax break. For 2023, donors can transfer up to $100,000 directly from their traditional IRA(s) to charity.

Benefits include:

  • The gift comes from the donor’s IRA, using pre-tax dollars.
  • The gift amount is excluded from their taxable income.
  • The gift amount can be applied towards this year’s minimum distribution requirements.
  • An easy way to support CCF’s many programs dedicated to systems change in Los Angeles County!

As such, our donors can give far more with less! This may be an attractive giving option for donors if they are over 70½ and they are interested in making a significant lifetime gift to support their community right now.

Here Are the Rules:

  • The distribution must be from a Roth or Traditional IRA.
  • The distribution must be made directly from the IRA administrator to a qualifying charity such as California Community Foundation (CCF).
  • Gifts made to a donor-advised fund, supporting organization or private foundation do not qualify.
  • Distributions are limited to $100,000 (with exceptions) per individual per year. Any amount over will be added back to taxable income.

While donor advised funds are explicitly excluded from benefitting from a rollover, there are other funds at CCF that can benefit, including a scholarship and restricted funds. Besides donors creating their own fund, another great option to consider is giving their distribution to CCF for any of its impact funds, such as the:

You and your clients may access our personalized service and local expertise to help your clients address the issues and causes most important to them.

For more information on the Charitable IRA Rollover opportunity, please contact Emily Stork, Planned Giving Officer at estork@calfund.org.

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